Middle mortgage score

[marmaladepie]

Hi everyone,
My mortgage guy says any score above 740 is top tiered and gets prime rate. So if you’re way above that, it doesn’t matter, according to him. But I’ve seen some mortgage calculators and rate charts that show 750, 760, 770 etc and so on as their top tier.
Current middle mortgage score is 755. Just trying to see if I should strive to get that higher.
Thank you for helping a newbie!

[ShanetheMortgageMan]

With Fannie Mae & Freddie Mac loan programs (what the majority of people are qualifying for when they apply for conventional financing), there isn't any improvement to the price for having a 740 score vs. a 741+ score.  You can view the different price adjustments for various loan "features" at https://www.fanniemae.com/content/pricing/llpa-matrix.pdf & http://www.freddiemac.com/singlefamily/pdf/ex19.pdf.  FHA, VA & USDA pricing tends to have top tier at 720 and the pricing adjustments for lower credit scores aren't nearly as much as Fannie/Freddie's.

However, if your loan requires PMI, there is an additional score bracket of 760+.  Go to http://www.radian.biz/page?name=RatesAndGuidelinesNew and select "BPMI/LPMI Monthly Non-Refundable Prime Rates" (link may change) to see the difference in PMI rates.

Jumbo mortgage programs often have additional score brackets as well, I've seen as high as 780+ to get a particular programs best rates/prices.

[me12345]

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@marmaladepie wrote:
Hi everyone,
My mortgage guy says any score above 740 is top tiered and gets prime rate. So if you’re way above that, it doesn’t matter, according to him. But I’ve seen some mortgage calculators and rate charts that show 750, 760, 770 etc and so on as their top tier.
Current middle mortgage score is 755. Just trying to see if I should strive to get that higher.
Thank you for helping a newbie!

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[me12345]

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@marmaladepie wrote:
Hi everyone,
My mortgage guy says any score above 740 is top tiered and gets prime rate. So if you’re way above that, it doesn’t matter, according to him. But I’ve seen some mortgage calculators and rate charts that show 750, 760, 770 etc and so on as their top tier.
Current middle mortgage score is 755. Just trying to see if I should strive to get that higher.
Thank you for helping a newbie!

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Yes, some...(Very few) have better pricing for some programs when the mid score is above 740....However, this is NOT a lower rate, just a lower cost to get the same rate. So depending on the loan amount, it could save you a $100.00 or so in closing costs, its not enough to stress over, and in this market of rising rates, the delay in shopping or working to get your score up could cost you more.

Thanks,

[marmaladepie]

thank you all so much your replies. very insightful. we're looking to get jumbo and it helps to know that we can strive for a higer score.

@shane, reading through your links now.