Your FICO Score Affects your San Diego Home Mortgage

The higher your FICO score, the less you will pay to buy San Diego real estate on credit. Your FICO score is the most common type of credit report, and is what San Diego lenders look at when deciding what to lend you for a mortgage loan. You can save thousands of dollars every year, or you can pay thousands of extra dollars each year on your San Diego real estate mortgage, depending upon your FICO score.

The median FICO score is 723. The highest FICO score attainable is 850; however, only 13 percent of the population scores over 800. In order to get the best San Diego real estate mortgage terms, most San Diego lenders require a score of at least 760.

A FICO score of 760 or better currently makes you eligible for an average interest rate of 5.98 percent on a San Diego 30 year, fixed rate mortgage of $216,000. If your score is between 620 and 639, the interest rate rises to 7.47 percent, which translates to paying an additional $227 each month or $81,720 for the life of the mortgage. A score below 620 can add up to six percent interest. Even a point or two can make a major difference over time.

As your FICO score dips below the 700 mark, San Diego borrowers are often limited on how much money may be financed. Many San Diego lenders will disqualify you all together for a San Diego mortgage if you have a poor FICO score, even if the rest of your credit file is fantastic.

Be sure to check your three FICO scores when you first decide to look for San Diego real estate. Get counseling in how to raise your scores, if it is below 760. Buy San Diego real estate with terms that are to your advantage. Know your credit scores and repair any problems early.


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