Credit Scoring Info

Feb 24th 2009

Related Posts: Credit & Finance, Government, What If Realty News

hi

“Good” credit is not a black-and-white matter these days. To mortgage financiers Fannie Mae and Freddie Mac, there’s good credit, better credit and best credit.

That’s because about a year ago Fannie and Freddie added grades of risk to people’s credit scores, which means they will add fees to the mortgages they buy in the secondary market, in order to mark them clearly for perceived risk. Those risk grades can make a loan significantly more expensive.

A score higher than 740 gets the best rates.

“A score between 720 and 739 gets .125 percent added to the rate, a score between 700 and 719 gets .375 percent added to the rate, and a score between 680 and 699 gets .5 percent added to the rate,”

© 2009 Chicago Tribune, Mary Umberger. Distributed by McClatchy-Tribune News Service.

This entry was posted on Tuesday, February 24th, 2009 at 10:13 am and is filed under Credit & Finance, Government, What If Realty News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

Leave a Reply