About lower Fico/Beacon scores. 

Ok let’s begin you can purchase a home with a 580 Beacon score or Raise your score to 620 for much less and get a better rate long term and save $$$$.

Example

Loan One

John Doe

$ 60000.00 income

2 years on the job

Wants to buy a house has a 580 middle score.

Sale of home

Cannot use 6% seller concessions –Conventional 30 year fixed rate loan

Closing costs of $ 5640.00

PMI prepaid $ 2330.00

Loan to value ratio 80%

Closes in 30 days much more detail and scrutiny in acquiring mortgage loan

100000 x 20% down = 20000

80000.00 * 7.5% =

Total out of pocket expense – $ 25640.00

Monthly Principal & Interests $559.37

Monthly Real Estate Taxes $250.00

Monthly Insurance $125.00

Monthly PMI 41.60

Total Monthly Payments $975.97

Total out of pocket cost to acquire loan - $ 27970

Loan two

John Doe

$ 60000.00 income

2 years on the job

Wants to buy a house has a corrected 622 middle score in two days from 580.

Paid off 2 Credit cards to below 25% to credit limit – $ 2500.00 36 points higher

One medical collection – $ 547.00 6 points

Rapid Recheck to clear up collection and report paid credit card balances in two days. $ 350.00

Closed in 12 days

Can use 6% seller concessions – USDA 30 year fixed rate loan

Closing costs of $ 5640.00 - Seller paid in full

Sale of home

100000 x 0% down =

100000.00 * 5.0% =

Monthly Principal & Interests $536.82

Monthly Real Estate Taxes $250.00

Monthly Insurance $125.00

Loan To Value Ratio 100.00%

Monthly PMI $0.00

Total Monthly Payments $911.82

Total out of pocket expense – $ 3597.00

Totals

Notice a difference of - $ 24373

Payment Savings $46,769.15 on loan 2

Total cost of loan one over loan two - $ 71142.15 for a 580 score over a 620 score

Total cost per year over a 30 year loan - $ 2371.40

Which score would you rather have ?

Have a low credit score and enough for down payment and closing costs I can help!

Carl Ashton
Mortgage Banker

1605A Prosperity Farms Rd
Lake Park Florida 33403
Phone: 561-210-3000
Fax: 561-624-1764
[email protected]

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