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High Credit Score = Low Mortgage Rate


Joe Gonzalez
Branch Manager
1st Metropolitan Mortgage
Phone: 610-351-7510
Fax: 610-351-7810

Credit scoring was developed in the 1960s as a means to determine whether or not consumers were likely to repay their loans. The score ranges from 350 to 850 with a higher score being extremely favorable. Essentially, a high credit score translates into lower interest rates for the borrower.

There are five factors that comprise the credit score. Payment history accounts for 35% of the score; outstanding credit balances have a 30% impact; credit history makes up 15%, type of credit factors at 10%; and inquiries influence the score by 10%. This gives the lender a snapshot of an individual's sense of financial responsibility and ability to pay back loans.

There are many quick tricks to improve the credit score, and I can provide borrowers with more information on this subject. If necessary, I guide them to a reliable resource for credit remediation. If a borrower has to pay a higher interest rate to close a loan, the tarnished credit rating will begin to improve once mortgage payments are made on time and in full. If that is the case, my team and I will be on the watch to alert the borrower when an opportunity arises to refinance and get a lower interest rate.

Mortgage Interest Rates*
Rates as of 05/01/2008:
 ConformingAPRPayment per
JumboAPRPayment per
30 Year FHA6.25%6.375%$6.16%0.000%$0.00
15 Year FHA6.5%6.710%$8.71%0.000%$0.00
30 Year Fixed6.5%6.625%$6.32%0.000%$0.00
20 Year Fixed6.5%6.625%$7.46%0.000%$0.00
15 Year Fixed6.125%6.207%$8.51%0.000%$0.00
*Rates are subject to change due to market fluctuations and borrower's eligibility.

For help or questions contact:

Joe Gonzalez

Senior Loan Consultant -  NMLS #126036
GMH Mortgage Services, LLC
625 W. Ridge Pike, Building C, Suite 100 | Conshohocken, PA  19428 | Direct: 610-355-8039 |  Cell: 610-739-6563

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Comment balloon 1 commentJoe Gonzalez • May 01 2008 04:07PM


I hate credit scores,I think people sometimes get put into bad loans because of bad luck.
Posted by Greg Hampton, North Georgia Mountain Property,Blue Rid (Re/Max Around The Mountains) over 12 years ago