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What a week for interest rates!


Rates have taken a wild ride lower over the last several months. This week however, rates have broken through new lows.The 10 year treasury bond hit historical lows on Friday, February 28 at 1.13%. This historical rate drop gives a generational opportunity for many homeowners to lower their monthly payments.


What opportunity is there for consumers? Let’s take a look. Even though there is savings for many consumers, those that have excellent credit will save the most. Let’s take a look at the numbers on a fixed rate $350,000 mortgage at 75% of the appraised value.


Standard closing costs of roughly 2% should be considered by many lenders. If you have concerns, there is a list of lenders at the bottom of this blog to contact.


For a 30 year fixed rate mortgage, here are the payments for those with different credit scores.

Mortgage Payments on a 30 Year Fixed-Rate, $350,000 Mortgage (75% LTV)
FICO® Score Monthly Payment (Interest Rate) Payment Difference (from 760 Score)
760 $1,499.31    (3.125%) 0
740 $1,499.31    (3.125%) No Difference - 0
720 $1,523.22    (3.25%) An extra 23.91
700 $1,571.66    (3.50%) An extra $72.43
680 $1,596.18    (3.625%) An extra $96.87
660 $1,645.83    (3.875%) An extra $146.52
640 $1,670.95    (4.00%) An extra $171.64
620 $1,696.27    (4.125%) An extra $196.96

As you can see, any mortgage borrower taking out a mortgage with an excellent FICO score will save the most money. A 720 credit score pays an extra $23.91 a month, while a 660 FICO Score pays an extra $146.52 a month. An excellent FICo score can qualify for tremendous savings that can be thousands of dollars each year. 


My Credit Plan


There is one further note so you can know. My Credit Plan is the only program available to consumers to check your mortgage payments and qualifications because it is assesses and uses your Classic FICO Scores – the same ones all mortgage lenders use.  Check at My Credit Plan to see what your mortgage qualifications are.


Mortgage Lenders


The following is a list of respected mortgage lenders. Review their rates and fees for the best terms. 


Momentum Loans


Wells Fargo Mortgage


Bank of America Mortgage

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