Translating Your FICO Credit Score Into Interest Rates – Episode #54
This episode shows how your FICO credit score translates into an interest rate and a payment using the myFICO tool. This tool gives an indication of how much you can afford because it shows your payments for a mortgage amount you select. Plus the tool is setup for a 30 yr mortgage, a 15 year home equity line and a 36 month auto loan.
In addition, it allows you to choose a loan amount so that you can see a specific example of how your FICO score will translate into an interest rate and a payment.
So, a couple of examples to show you how this works for a conforming versus a jumbo loan. Note how the FICO score determines an interest rate band and then a corresponding payment. It’s important to remember other expenses when you are calculating how much house you can afford. Also see my video on preparing your FICO credit score to apply for a mortgage
|FICO® score||APR||Monthly payment, $300K 30-yr Fixed Mortgage *|
|FICO® score||APR||Monthly payment, $417K 30-yr Fixed Mortgage *|
- Translating Your FICO Credit Score Into Interest Rates – Episode #54
- Installment Loans and Credit Scores – Episode #58
- myFICO Suze Orman FICO Kit – Review
- What’s a Good Credit Score? – Episode #4
- Credit Score Estimator Can Estimate Your FICO Score – Episode #89
- Personal Loans and Credit Scores – Episode #70