One media report cited an unnamed expert advising people to lower their credit scores to get a better fee, but that's terrible financial advice, experts say.įirst off, people with higher credit scores are still paying lower fees, so it doesn't make sense to damage your credit score. So, should you lower your credit score to get a cheaper fee? No. The changes will also make it more expensive for borrowers to refinance and to pull equity out of their homes to pay off consumer debt. WBZ-TV graphicįor a homeowner with a $500,000 purchase price who puts down the minimum down payment, a person with a 660 credit score will get a rate of about 6.25% while a buyer with a 740 score will pay 6.5%. Here is what it will mean for first-time homebuyers who fit certain income guidelines. For some first-time homebuyers, those fees are often rolled into a higher interest rate paid by the consumer. According to Bingham, it comes down to fees that lenders pay back to federal programs that back the mortgages.
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