Help with interest rates

[FA21]

Wondering if anybody knows how to find out the interest rates for different credit scores.  I found a list of rates at one internethome for sale website but it doesn’t say how the rates varies according to the actual credit scores.  

Is there any link or table that reflect the interest rates according to credit scores?

thank you in advance for reading!

[NC_Mtg_Loaner]

Generally speaking, what you are looking at is the cost of credit and loan level pricing adjustments which can vary from lender to lender based upon your:

• credit score
• loan amount
• loan to value
• loan program
• location

It's basically the reason why interest rates vary across the board and most lenders utilize FNMA's loan level pricing matrix which you can review here:  https://www.fanniemae.com/content/pricing/llpa-matrix.pdf

Now, if any lender explains this to you in detail---prepare to die, because you'll have more knowledge than you deserve.

Understanding it....who knows?

:-)

[FA21]

Thank you for the information. I agree with you on the complexity of the mortgage world. I think it should be easier to understand for the average Joe (me, lol), thanks again

[NC_Mtg_Loaner]

Well, it is easy actually.   

If you have a stable and steady income source that can be verified and expected to continue for 3 years, along with a reasonable sum (3-5% of a home's purchase price) available for a down payment and a reasonable history of paying loans back--you'll easily be approved for mortgage loan you can afford as long as the subject property is sufficient colatteral for said loan. 

What part don't you understand?

:j/k

[FA21]

The part I don't understand is how they determine the interest rate based on Fico scores. If I have 660 score or lower I get, let's say 5.0 and if I have 665 I get 4.85%. How do they determine that percentage difference? Is that difference the same for everybody?

[NC_Mtg_Loaner]

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@FA21 wrote:
The part I don't understand is how they determine the interest rate based on Fico scores. If I have 660 score or lower I get, let's say 5.0 and if I have 665 I get 4.85%. How do they determine that percentage difference? Is that difference the same for everybody?

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I can't speak for other lenders, but I'll try since Congressional legislation corrected all the imbalances within the Industry years ago, which leveled the playing field across the board. 

What I find inteteresting (and I'm not surprised, really) is that you don't realize that you can get whatever rate you want.   If you are being offered 5.0% but want 4.875%, just ask your LO and I'm sure they'll be able to offer it.   This was the entire point of Congressional "fixing" of the "broken" and "melted down" mortgage industry a decade ago.

The FNMA LLPA index reflects the additional costs for the consumer to obtain the advertised interest rates based upon the current market price conditions (see US 10 YR Treasury Bond for a historical barometer).