Do You Spend Enough Time Growing and Protecting Your Credit Scores?
A recent Zillow Mortgage Marketplace survey revealed that consumers spend about the same amount of time (approximately five hours) researching a home loan, a computer and a vacation.
And, the survey showed that people spend about 10 hours doing research on a car before buying one.
The average home loan costs almost $146,000 which is five times more money than consumers spend on a car.
Even though people spend countless hours looking for the perfect home they don't give much thought to how much just a half point difference in the interest rate on that new home will cost them over time.
Likewise, few people have spent hardly any time building and protecting their credit scores so they can a lot of money with the much lower interest rates.
Very few people even check their credit report before they go house hunting.
Few people realize that interest rates on mortgages are tied to credit score ranges.
For example, if your score is between 620 and 680 you will get a certain interest rate where you could get a better interest rate if your score was between 680 and 720; and even better if above 720.
What if you where purchasing a new home and getting a mortgage loan for say $145,000.
If your interest rate was 6 percent and your loan was to be paid back over 30 years you would pay $167,954.
14 in interest over the life of the loan.
If you could get that loan for 5.
5 percent interest you would pay $151,388.
15 over the life of a 30 year loan.
This means that you will pay out $16,565.
99 unnecessarily in interest.
And, that is just for a half percent difference.
What if you could make that a whole percent difference? This difference saved could be used to pay college tuition for your children.
And this interest savings comes from taking an interest in your credit scores and where they fall in the credit score ranges.
A little time spent each month taking care of your creditworthiness can pay off big for you in the future.
Don't be an unaware consumer.
When getting a mortgage loan you can not only save money with a lower interest rate, you can save money on closing costs.
Typically banks will have lower closing costs than mortgage companies and if your credit scores are healthy then you can get a home loan with a bank.
So, shop around for savings in interest rates and closing costs.
If you aren't good at remembering to check your credit scores on a frequent basis, then you might want to sign up with a credit monitoring service so you can get email alerts in any shift in your credit scores.
And, the survey showed that people spend about 10 hours doing research on a car before buying one.
The average home loan costs almost $146,000 which is five times more money than consumers spend on a car.
Even though people spend countless hours looking for the perfect home they don't give much thought to how much just a half point difference in the interest rate on that new home will cost them over time.
Likewise, few people have spent hardly any time building and protecting their credit scores so they can a lot of money with the much lower interest rates.
Very few people even check their credit report before they go house hunting.
Few people realize that interest rates on mortgages are tied to credit score ranges.
For example, if your score is between 620 and 680 you will get a certain interest rate where you could get a better interest rate if your score was between 680 and 720; and even better if above 720.
What if you where purchasing a new home and getting a mortgage loan for say $145,000.
If your interest rate was 6 percent and your loan was to be paid back over 30 years you would pay $167,954.
14 in interest over the life of the loan.
If you could get that loan for 5.
5 percent interest you would pay $151,388.
15 over the life of a 30 year loan.
This means that you will pay out $16,565.
99 unnecessarily in interest.
And, that is just for a half percent difference.
What if you could make that a whole percent difference? This difference saved could be used to pay college tuition for your children.
And this interest savings comes from taking an interest in your credit scores and where they fall in the credit score ranges.
A little time spent each month taking care of your creditworthiness can pay off big for you in the future.
Don't be an unaware consumer.
When getting a mortgage loan you can not only save money with a lower interest rate, you can save money on closing costs.
Typically banks will have lower closing costs than mortgage companies and if your credit scores are healthy then you can get a home loan with a bank.
So, shop around for savings in interest rates and closing costs.
If you aren't good at remembering to check your credit scores on a frequent basis, then you might want to sign up with a credit monitoring service so you can get email alerts in any shift in your credit scores.
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