Image courtesy of BeSmartee, LTV credit score vs interest rate
In this infographic we look at how your interest rate changes based on your loan-to-value ratio and FICO credit score.
Most of us know that your FICO score is an important factor that goes into determining the cost of your home loan. In the graphic above we explore several loan-to-value (LTV) ratios and how your FICO credit score determines your interest rate in each scenario.
What’s surprising about this data is that borrowers with high LTV ratios can have lower interest rates than people with lower LTV ratios. That means borrowers who are putting less money down, are getting better rates. This is most likely driven by FHA insured loans.
In our previous article, we talk about how people with good credit will sometimes get costlier loans than people with bad credit. So remember, just because you have good credit, you still need to be careful and do your homework before signing on the dotted line!
Source: Fannie Mae
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