Have You Checked Your Credit Score Recently? It Could Save You Thousands of Dollars.
If you haven’t, you may want to find out what your credit score is and review the history that is currently determining your score with Equifax or TransUnion. Why? Ultimately, your credit score will determine the interest rates that a financial institution will apply to a mortgage that you have. In a many cases, it’s quite simple and straight forward to fix and manage the score so that your interest costs don’t take a bigger bite than they should. Sometimes there are blatant errors on your credit history that are easy to fix, if you take the time to look. Any decent banker or mortgage specialist should be able to help you with it.
Just as an illustration, if you have a mortgage of $250,000 over 25 years at 3.5%, that translates into about $123,000 in total interest costs. If your interest rate is 4.5% because you have a low credit score, the total interest is about $163,000. That’s $40,000 in extra interest costs. That’s huge because you are making your monthly payments with after tax dollars.
The cost/benefit of optimizing your credit score is compelling. If you need names of any mortgage specialists, let me know.