Cost Benefits of an Improved Credit Score
Better Credit Means Better Rates
An individual with a credit score in the range of 620-639 can expect to pay, on average, more than a full percentage point higher on their APR rate when compared to an individual with a credit rating above 760. A single percentage point may not sound like a ton, but on a $200,000 mortgage, this amounts to an additional cost of over $40,000 over the life of the loan. Even if you are able to lower your APR rate by .2%, this could amount to a savings of more than $8000 on a $200,000 mortgage.
Paying an extra $40,000 for anything is a lot of money. Comparatively, improving your credit score is inexpensive and involves a small amount of work and responsibility. Loan One, a division of The Union Bank Company, will even provide up to a $650 Closing Cost Credit to go through a program to improve your credit, which offers additional benefits beyond cost savings on your mortgage.
Compare Mortgage Costs & Savings
If you’re still debating whether it’s worthwhile to improve your credit score to qualify for a Loan One mortgage, use our calculator below to figure out the costs of a Loan One Mortgage compared to a mortgage through another lender with a lower credit score.
Click here to view our current interest rates.