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:|
| ||Conforming||APR||Payment per|
|30 Year FHA||6.25%||6.375%||$6.16||%||0.000%||$0.00|
|15 Year FHA||6.5%||6.710%||$8.71||%||0.000%||$0.00|
|30 Year Fixed||6.5%||6.625%||$6.32||%||0.000%||$0.00|
|20 Year Fixed||6.5%||6.625%||$7.46||%||0.000%||$0.00|
|15 Year Fixed||6.125%||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:
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