Hey all, I had thought that 620 was considered prime and that you could get the good 5-6% rates with a score above that (I'm still working towards it)... Anyway, I just saw this table on myfico.com that indicates a 620 would result in a rate almost 2% more than the best out there? Anyone get in the 5's with around a 620 middle? FICO Score Interest Rate 720 - 850 5.248% 700 - 719 5.373% 675 - 699 5.910% 620 - 674 7.060% 560 - 619 8.531% 500 - 559 9.289% Also, is it strictly score based? For example, would the rate be different for someone with a 620 and no lates v. someone with a 620 and many lates? Thx!
I got 5.875% with 687 middle score. 635 was my low end and 698 was the high..... (BTW, this is with 1 BK7 and 1 BK13)
I got a 3/1 with middle score of 618. Rate of 4.0. BK and foreclosure 6/00. $184,000 home with 10% down.
Did you guys have any lates? Some I've seen list a fico score, plus something like no more that 3 30 day lates, 1 mortgage late, etc... How far do they go back for these numbers? ie, do they just count lates for the last 6 months, 12 months, ever, etc?
My scores are identical to yours...I had MANY lates in 2000-2001, none since then. I was quoted 6.25% on a 30 year fixed. My husband's scores are close to ours and he's self-employed. The broker I spoke w/said only last 18 months late was looked at, and mine are all before then. Plus I have 2 paid charge-offs I am trying to get deleted! if you're looking to bu a house I hope it works out for you! We both can do it!!!!
Whoever told you this is a sub-prime lender, or someone who got their information from a sub-prime lender. The truth is that 620 is a pretty low score. Still, depending on what the negatives are on your credit, there is a strong chance you will still qualify for conforming rates. Yeah, I've seen that table too. Don't worry about it, it means nothing. Interest rates on conforming loans are not really score based. It's mostly pass/fail. If you pass, you get the same rate as everyone else, with only a small modifier for the low score. If the loan is non-conforming, then they're very sensitive to credit score.
I'm actually looking to do a refinance since my rate right now is 9.375 (ouch!)... but I've had a bunch of lates in the last 18 months. I've been trying to get my score up above 620 (609 PG right now) since I thought that was kinda the magic number, but I guess it isn't. I was hoping to do one of those no-cost, low rate refi's that the banks advertise, but maybe I'll have to end up going with a broker again... I guess it'd be worth it even if I have to go with 7 or 7.5...
Re: Re: FICO 620 for a good mortgage rate? last mortgage late 11/02 or 12/02, depending upon which report you look at... The only derogs I have in 2003 are two dings from the freakin electric company... there was some confusion with the budget payment plan... I've been fighting with them, but they're pretty adament about keeping it on there - plus they verify it (2x now) when I dispute. Going back into 2002, well that was a pretty bad year - reporting wise. I have many lates on the mortgage (31-35 days, but close don't count - I know). I also have rolling lates on my student loan in 2002.
Re: Re: FICO 620 for a good mortgage rate? Oh... also, if it matters, I owe 148k on 205k (from 1999 appraisal).
Re: Re: Re: FICO 620 for a good mortgage rate? It could matter a lot. It all depends on what you want to do. You qualify for a lot better than what you've got. You're not quite ready for conforming, but even with non-conforming you could reduce that interest a lot. I'd suggest you think of the following options: 1) You could refinance with debt consolidation, wait about six months then refinance again into a conforming loan. I don't know what's holding your scores down, but if any of it has to do with unpaid debt, doing this would very likely boost your scores up. Also, if the fundamental reason why you're struggling has to do with having too much out-go on a month to month basis, this will help you out a lot in the short term as well as the long term. 2) Keep on the way you are, work on your scores some more and refinance when those lates are 12 months old. It's hard to say while knowing nothing about your debts and income, but you will probably be able to go conforming then. 3) Refinance rate and term now. Yeah, your credit isn't perfect and you won't get a rate in the lower fives, but just knocking a few points of that rate you got now should pay for itself in less than a year. Plus you will get a month off and a lower payment too. Wern't you trying to refinance a few months ago? What happened with that?
Re: Re: Re: FICO 620 for a good mortgage rate? Yep - that was me... I've been waiting and working towards 620 since I thought that was the magic number for conforming and I didn't want to waste any hards by applying if I wasn't sure - just recently realized that the presence of lates kinda overrides the score. So, if I understand correctly - with a 620, I have to have 12 months of no lates to qualify for conforming? If the score goes higher, will it compensate for lates within the last 12 months? Since March, I've gotten 13 degog accounts either updated to good, or removed across my 3 reports, but my score hasn't really changed all that much. I started around 550, peaked at 635 and am currenly around 610 - but those numbers have to be taken with a grain of salt since I've been almost constantly in dispute throughout and have been relying on PG scores since April. My latest round of disputes will be done in a couple of weeks & I was thinking of ordering a myfico triple score to get accurate numbers then... but if the lates are going to keep me subprime, maybe I should just keep working on it for another 5 months... Would a broker be likely to get me into a conforming loan with the last 8-9 months clean, except for the 2 utility dings? Since march, my util has been at 100%, but now it's at 50% & should drop to below 30% in the next couple of months - I figure that should give me a boost - I'm optimistically hoping for a 650 mid in the short term... It really does astound me that the scores are so low - on TU, for instance. I have 15 tradelines - all positive expect for 4 - and those 4 have the most recent lates listed as 3/02, 10/02, 11/02, and 12/98. I have no collections, chargeoffs, judgements, etc - only late pays and WK gives me a 5! I do have 5 inq's, but the most recent was 3/02... Thanks for taking the time to read this...
Re: Re: Re: Re: FICO 620 for a good mortgage rate? So were you turned down? Or did you just decide not to do it yet? The short answer is yes and yes. No, you want 12 months. A broker could refinance you at a much lower rate, but it still wouldn't be conforming. I still like the idea of putting you into a non-conforming loan short-term, then going conforming in about six months when those lates are over a year old. If you were able to drop your rate by 2.5 points, the savings in interest would just about pay for the first loan, and in the meantime you would be able to take care of all non-mortgage debt. Just a suggestion. Whatever option you take, you're headed in the right direction, it's just a matter of time.
Re: Re: Re: Re: FICO 620 for a good mortgage rate? I decided not to apply back then since my scores were still sub-600's... You seem to indicate that I should be able to get a rate around 6.75 or so with my current situation and that the savings should recoup my costs so that I can refi again in 6 mos... Looking at the numbers, it seems like I'd save around $2100 over 6 months by refi'ing down 2.5 points - wouldn't the closing costs for a subprime be a lot more than that? I tried a refi back in 2001 (without even looking at my reports - I think my mid was around 570) and the broker was giving me a decent rate, but the closing costs were almost $8k - I ended up not taking that one! What do you think I should expect for closing costs on this kinda loan? Thanks so much for all your help!
