BETA
How credit scores dictate your rate
Lenders use your three-digit FICO credit score to assess risk. A borrower with an excellent score of 800 might get an interest rate that is 1.5% lower than someone with a score of 620, saving over $100,000.
Chapter 1
The birth of the 30-year loan
Chapter 2
How the money actually flows
Chapter 3
The invisible giant in the background
Chapter 4
Navigating your mortgage choices
Ch 4 · Navigating your mortgage choices
sloane American Mortgage Choices
Fixed rate, fixed rate, Stayin' on track! Same payment, There's no turning back!
sloane Your financial track record directly determines how much extra money you will pay the bank.
Fun Fact
Credit impact: A simple 1% difference in your mortgage interest rate can cost or save you over $70,000 on a typical home loan.
sloane Buying a home requires thousands of dollars in extra administrative fees at the final signing.
Glossary
mortgage (noun)
A legal agreement by which a creditor lends money at interest in exchange for taking title of the debtor's property. American buyers selecting their loan terms typically choose between fixed-rate and adjustable-rate agreements.
A legal agreement by which a creditor lends money at interest in exchange for taking title of the debtor's property. American buyers selecting their loan terms typically choose between fixed-rate and adjustable-rate agreements.
Quiz
What is the main benefit of a 15-year fixed mortgage over a 30-year fixed mortgage?
Quiz
Why might a home buyer choose a fixed-rate mortgage over an adjustable-rate mortgage?