Do you compare rates trying to shop for your buyer's "best deal"? Determining what their "best deal" is will be getting more and more difficult because so much now relies on the borrowers FICO scores! Here's a chart that is worth taking a peek at to see just what a few points in a FICO score can do to their payment:
| FICO Scores | APR | Monthly Payment |
| 760-850 | 5.751% | $1,751 |
| 700-759 | 5.973% | $1,793 |
| 660-699 | 6.257% | $1,849 |
| 620-659 | 7.067% | $2,009 |
| 580-619 | 9.165% | $2,449 |
| 500-579 | 10.194% | $2,676 |
Finding a good lender, that communicates, that gets figures AND funds to the closing table on time suddenly just isn't enough. Lenders need to be scratching their heads and figuring out how to get the best rate by educating borrowers on HOW TO bump their score, even just a little, to get to that next best FICO score tier. OH! And by the way, IF the lender does understand this concept, and will work with the buyer to increase the score, will they give the benefit back to the consumer OR just pocket it?
Something to think about!!
Views and opinions expressed on this site are not necessarily those of WR Starkey Mortgage.
Ruth Vogt, Branch Manager
Colorado LMB #LMB100023827
Hey, Ruth. Thanks for sharing. I just finished helping my client get a great rate (5.5%) and he is thrilled. Take Care, Jim