|
I read an article recently that people with credit scores over 700 may still have to pay extra, is that true?
Lindsey M. in Smyrna, GA writes:
Stephen, I am hoping to buy a house next year and want to be in a position to get the best deal. I read an article recently that people with credit scores over 700 may still have to pay extra, is that true?
Lindsey, unfortunately this is correct. The entire mortgage industry has changed to a system of “Risk-based Pricing”. Quite simply it means that the lower your credit score, the more you are going to pay. To get into the top bracket, you need to have a whopping 740 credit score (less than 3% of the population). The penalties can be very significant. For example: a borrower with a 718 score, seeking 80% financing on a $300,000 house, would get stuck with a $1,200 penalty!
My advice is to go to www.annualcreditreport.com and review a free copy of your credit report to make sure that there are no errors. You may also consider a legitimate credit repair service. For more information, please take a look at the credit repair section of my website.
Stephen
If you have a question that you would like me to answer please email me at Stephen@katzmortgageteam.com.
Email Page | Print Page
|
|
|
