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Another house-buying question from me, here…

I was researching this, because I intend to buy a mortgage with a long term and fixed interest rate. My credit score is currently a 620, and my husband’s is a 650 (considered “fair”, by what I’ve read). The ballpark I got for mortgage interest rates, at that level, was 7.0-7.5%. Does that seem realistic?

My credit is by no means bad, I have no late payments at all, nothing over limit (or even close to over-limit), and am using about 47% of my total credit limit. I haven’t purchased anything on a credit card in a long time, instead I’ve just been paying them off (more than the minimum payments, by far).

The only bad marks on my report are some hospital bills that were sent to collection agencies, which have been paid, but of course they still show up.

Does anyone with any experience care to comment on the credit score/interest rate arena?
To answer a question – yes, the collections do show up as “paid”. But I believe they still remain on the report as a matter of record.

6 Thoughts on Credit score vs. mortgage interest rate…?
  1. Reply
    Real Estate Guy
    February 11, 2014 at 11:51 am

    Your rate seems high but fair.

    In regards to the collections. Does the credit report show that they have been paid. Talk with your lender about doing a “rapid rescore” on your credit report. This is when you pay off a debt and the credit agency will rescore you on the request of the lender. This MAY increase your score a lot.

  2. Reply
    Trista M
    February 11, 2014 at 12:42 pm

    We had about the same scores as you and we got our loan at 6% but that was 2 years aog but I would think that 7.5% would still be a good one and possible for you.

  3. Reply
    rob g
    February 11, 2014 at 1:09 pm

    I am the owner/broker of a mortgage company, and I also have a credit repair company as well….

    The rate doesn’t seem too high, but honestly, it is hard to tell without more specifics. Everything IS credit score driven, however their are so many other factors.

    I invite you to email me with any questions, just as a courtesy. I like to help people. Keep in mind that I am only licensed in Florida, so i am not soliciting your business, nor do i want/need any personal information. But with some more details, I can help you understand your credit, how to remove collections, and how to make sure you are getting the lowest interest rate.

    I offer my help because I care about helping people with a financial decision. You’ll owe me nothing but a thank you.

  4. Reply
    February 11, 2014 at 1:33 pm

    That rate’s a little high being that you have a combined fair credit score, and no lates on anything but hospital bills. From I’ve been told by my loan officer, late hospital bills if paid don’t really matter. I’ve bought 3 homes with him as my loan officer. Shop around. I think you can do much better than 7%.

  5. Reply
    Glastic Q
    February 11, 2014 at 2:22 pm

    I highly recommend doing a little more research…. Don’t get me wrong 7-7.5 is a reasonable rate for your credit score. Rates are as low 5.5 fix, so with that being said I’m sure there’s some room for negotiations. With your credit score, i would highly recommend FHA. For free mortgage secrets other lenders don’t want you know. Please go to

  6. Reply
    February 11, 2014 at 2:29 pm

    In order to answer this question someone would need to know what your loan to value is going to be and how much money you have saved for assets. Because of the housing crisis there are so many different factors in getting a loan now and most are driven by credit score, AUS approval, amount of assets and debt to income ratio. If your loan to value is over 80% you need to take into consideration that you will be paying PMI and an additional price hit to the loan for the lender to even be able to sell it in the secondary market. If you would like more details, please feel free to e-mail me.

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