Zillow: Lower Credit Scores Add Costs to Homebuying
May 15, 2018
Homebuyers carrying a lower credit score can wind up paying $21,000 more than a buyer with an excellent credit score, according to new data from Zillow.
On a national level, a borrower an "excellent" credit score could get a mortgage with a 4.50 percent annual percentage rate, but a borrower with a "fair" credit score would wind up with a 5.10 percent rate, thus spending $700 more per year for the typical home. In pricier housing markets, the cost differences are significantly greater.
"When you buy a home, your financial history determines your financial future," said Zillow Senior Economist Aaron Terrazas. "Homebuyers with weaker credit end up paying substantially higher costs over the lifetime of a home loan. Of course, homeowners do have the option to refinance their loan if their credit improves, but as mortgage rates rise this may be a less attractive option."
FMJ Job Listings
- Associate-Finance, IBD42518PBFG - Goldman Sachs USA - New York, NY
- Find Your Future - Springleaf OneMain - Avon, IN
- Manager, Correspondent Lending - PenFed Credit Union - Alexandria, VA
- Home Equity Customer Service Representative (SAFE) 4 - HEPMO Specialty Services Team - Wells Fargo - West Des Moines, IA
- Find Your Future - Springleaf OneMain - Depew, NY
- VP of Finance Real Estate - Real Estate firm in NJ - Jersey City, NJ