topic Re: Using the middle MTG score? in Understanding FICO® Scoring

Using the middle MTG score?

Trudy — Sat, 29 May 2021 04:29:12 GMT

Have a question from someone I've been trying to help where I can....If the middle score is used for MTG loans is that absolute or does that take into account the max real world available score as we know of here; whether a 780 with EQ is equal to a 780 with EX?

Not sure if it matters based on what gets you the best MTG rates but I thought it was a good question that I could not answer should one be on the cusp of the next rate tier.

Thoughts?

Re: Using the middle MTG score?

AllZero — Sat, 29 May 2021 09:10:39 GMT

@Trudy wrote:
Have a question from someone I've been trying to help where I can....If the middle score is used for MTG loans is that absolute or does that take into account the max real world available score as we know of here; whether a 780 with EQ is equal to a 780 with EX?

Not sure if it matters based on what gets you the best MTG rates but I thought it was a good question that I could not answer should one be on the cusp of the next rate tier.

Thoughts?

You pose an interesting question with the real world caps of EX2 844, TU4 839, EQ5 818. I do not know. From my observation, real world caps is not a factor. To my understanding, 760 MMS should get best rates regardless if it was from say EQ vs EX.

Re: Using the middle MTG score?

tcbofade — Sat, 29 May 2021 08:24:20 GMT

According to my mortgage banker, you get the best interest rates with anything over 740.

IF you are paying PMI, the cost goes down with a 760 or better, but the actual interest rate is the same.

As I am not paying PMI, I got the lowest rate with a 748 MMS.

Good luck!

Re: Using the middle MTG score?

iv — Sat, 29 May 2021 19:38:08 GMT

@Trudy wrote:
Have a question from someone I've been trying to help where I can....If the middle score is used for MTG loans is that absolute or does that take into account the max real world available score as we know of here; whether a 780 with EQ is equal to a 780 with EX?

Not sure if it matters based on what gets you the best MTG rates but I thought it was a good question that I could not answer should one be on the cusp of the next rate tier.

Thoughts?

Middle mortgage score is always just the numerical median (middle) of the three scores. (Or the lowest of two scores, if three are not available for a borrower.)

The fact that each score model has a different real-world maximum has no effect at all. (No, there isn't any sort of scaling applied to the scores to account for the real range differences.)

(Yes, that does mean that it's not possible to have a MMS over 839. But that's WAY higher than the threshold for best-available rates at any lender...)

Re: Using the middle MTG score?

Trudy — Sun, 30 May 2021 00:31:27 GMT

Thank you ALL for your responses.