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

Post from: Video Credit Score

Translating Your FICO Credit Score Into Interest Rates – Episode #54