topic Re: 720 score needed for better rates ? I have 719 - is it worth getting a different broker or wait in Mortgage Loans

720 score needed for better rates ? I have 719 - is it worth getting a different broker or wait ?

4sallypat — Tue, 24 Aug 2021 13:56:19 GMT

So my mortgage broker after 90 days, pulls my credit again and finds that it increased 3 points from 90 days ago (now at 719 - mid score).

He says if I can get to 720+, I would get a much better interest rate (Los Angeles County) for a conventional 30yr loan.

At my current score, I would get a 4% rate while a 720+ score will get me 3.5%.

Is that true or should I look for another broker that is pushing me to increase the score ?

Re: 720 score needed for better rates ? I have 719 - is it worth getting a different broker or wait

VALoanMaster — Tue, 24 Aug 2021 17:02:34 GMT

@4sallypat wrote:
So my mortgage broker after 90 days, pulls my credit again and finds that it increased 3 points from 90 days ago (now at 719 - mid score).

He says if I can get to 720+, I would get a much better interest rate (Los Angeles County) for a conventional 30yr loan.
At my current score, I would get a 4% rate while a 720+ score will get me 3.5%.

Is that true or should I look for another broker that is pushing me to increase the score ?

We need a few more details.

What is the purchase price and your down payment?

What type of property, single family, 2-4 unit or condo?

Will it be your primary residence?

Re: 720 score needed for better rates ? I have 719 - is it worth getting a different broker or wait

4sallypat — Wed, 25 Aug 2021 14:35:17 GMT

@VALoanMaster wrote:
@4sallypat wrote:
So my mortgage broker after 90 days, pulls my credit again and finds that it increased 3 points from 90 days ago (now at 719 - mid score).

He says if I can get to 720+, I would get a much better interest rate (Los Angeles County) for a conventional 30yr loan.
At my current score, I would get a 4% rate while a 720+ score will get me 3.5%.

Is that true or should I look for another broker that is pushing me to increase the score ?

We need a few more details.
What is the purchase price and your down payment?
What type of property, single family, 2-4 unit or condo?
Will it be your primary residence?

$580,000

5% down

SFR - Los Angeles or San Bernardino county (borderline searches)

Primary residence

First time buyers

Conventional 30 yr.

Are there different interest rates for 719 vs 720 mortgage FICO scores ??

Re: 720 score needed for better rates ? I have 719 - is it worth getting a different broker or wait

VALoanMaster — Wed, 25 Aug 2021 16:22:27 GMT

@4sallypat wrote:
@VALoanMaster wrote:
@4sallypat wrote:
So my mortgage broker after 90 days, pulls my credit again and finds that it increased 3 points from 90 days ago (now at 719 - mid score).

He says if I can get to 720+, I would get a much better interest rate (Los Angeles County) for a conventional 30yr loan.
At my current score, I would get a 4% rate while a 720+ score will get me 3.5%.

Is that true or should I look for another broker that is pushing me to increase the score ?

We need a few more details.
What is the purchase price and your down payment?
What type of property, single family, 2-4 unit or condo?
Will it be your primary residence?

$580,000
5% down
SFR - Los Angeles or San Bernardino county (borderline searches)
Primary residence
First time buyers
Conventional 30 yr.

Are there different interest rates for 719 vs 720 mortgage FICO scores ??

Yes, there is a slight difference in rates from 719 to 720 on conforming loan amounts.

Rates are based on score tiers which are broken down in 20 point increments.

For example: 700-719 is one tier and 720-739 is another.

The bigger hit for you is the fact that your loan amount is just over the conforming limit.

I would focus on putting enough down to get your loan amount down to $548,250.00.

You can do both and get an even better rate.

Re: 720 score needed for better rates ? I have 719 - is it worth getting a different broker or wait

Anonymous — Wed, 25 Aug 2021 23:22:10 GMT

Sweet Jesus, your rate is so high! I locked at 2.875% with a lender credit 30 yr fixed conventional last month at a 709 mortgage mid score. I'm putting 20% down but that still seems insanely high.

Re: 720 score needed for better rates ? I have 719 - is it worth getting a different broker or wait

VALoanMaster — Thu, 26 Aug 2021 00:29:59 GMT

@Anonymous wrote:
Sweet Jesus, your rate is so high! I locked at 2.875% with a lender credit 30 yr fixed conventional last month at a 709 mortgage mid score. I'm putting 20% down but that still seems insanely high.

Rates can change daily and the rate for high balance conforming loans are slightly higher. In addition you have Loan Level Price Adjusters (LLPA) based on credit score, loan to value, credit score and loan to value together ( 2 hits for the same thing basically), property type and occupancy. In your case, you had lower LLPA hits because you put more money down.

Re: 720 score needed for better rates ? I have 719 - is it worth getting a different broker or wait

4sallypat — Thu, 26 Aug 2021 14:25:31 GMT

@VALoanMaster wrote:
@Anonymous wrote:
Sweet Jesus, your rate is so high! I locked at 2.875% with a lender credit 30 yr fixed conventional last month at a 709 mortgage mid score. I'm putting 20% down but that still seems insanely high.
Rates can change daily and the rate for high balance conforming loans are slightly higher. In addition you have Loan Level Price Adjusters (LLPA) based on credit score, loan to value, credit score and loan to value together ( 2 hits for the same thing basically), property type and occupancy. In your case, you had lower LLPA hits because you put more money down.

Ah all this makes a lot of sense!

So the key is to keep MY loan at or under the conforming loan amount of $548K even in Los Angeles County where the max conforming loans are over $700K ??