Scores vs Default rate

[sports1965]

I don't think  credit scores are a good indication of a person's ability or not to repay their mortgage as agreed

There's a lot of potential home buyers with scores in the 600's  that have a better ability to repay their mortgage versus so e one with an 740 score.

Yet these potential buyers with scores in the mid 600's are considered sub prime and get hit with higher rates and fees.

How many buyers with 740 scores defaulted on their mortage when the housing crisis started? 

Probably a higher rate than homeowners with low to mid 600's cores. 

Not fair !!

[MarineVietVet]

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@sports1965 wrote:

I don't think  credit scores are a good indication of a person's ability or not to repay their mortgage as agreed

There's a lot of potential home buyers with scores in the 600's  that have a better ability to repay their mortgage versus so e one with an 740 score.

Yet these potential buyers with scores in the mid 600's are considered sub prime and get hit with higher rates and fees.

How many buyers with 740 scores defaulted on their mortage when the housing crisis started? 

Probably a higher rate than homeowners with low to mid 600's cores. 

Not fair !!

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I won't debate whether it's fair or not but it's the system we all have to live with so the key IMO is to learn how to maximize our situation using existing rules.

[HiLine]

FICO scores are only one factor among many that determine the terms of your mortgage.

[sccredit]

Nobody said life is fair.  The whole point of credit is using your history to predict your future.  It sucks but it is what it is.