Difference of 560 and 660 credit score is hundreds of dollars!

Does credit scores make a difference in savings on your mortgage
payment? Here's a chart that clearly shows the differences.

Based on a 30 Year Fixed Rate Mortgage and a
$300,000 loan amount, here are the FISC Scores,
APR, and monthly payment amounts:

760-850...6.005%...$1,800
700-759...6.227%...$1,843
660-699...6.511%...$1,898
620-659...7.321%...$2,061
580-619...9.452%...$2,512
500-579..10.311%..$2,702

Notice the differences could have a dual impact, depending on
not just the score, but where in the range you are located.

For example, from the chart above, we see a score of 660 would
have a monthly payment of $1898. If the borrow would of had a
760 score, 100 points higher, they would have saved $98, $1176
a year.

Perhaps, that savings could have paid your car insurance for the
year, of the gas bill, or the cost of your cell.

But take a look at this comparison now, and this is why there is
so much talk about credit scores and the fact all consumers need
to take them seriously.

Let's suppose you were granted a loan with 560 score (actually,
those days probably are gone with yesterdays collapse of the sub
prime lending market).

You'd probably have to get a hard money lender to help you this
score. And you can expect much higher interest rates than you

see here in these tables.

But for the sake of our example here, we see the 560 score
requires the borrow to make a $2702 monthly payment (primarly
all interest --- because of the high risk a score that low traditionally
carries with it).

If that borrow could have worked on their credit and had improve
on making payments on time, they could bring their credit scores
up 100 points to 660 and have a mortgage loan payment of only

$1898 ----

Folks, that's a savings of $804 per month for a
100 point increase on their credit score.

Need we say more? That would be a savings of $9648 yr.

And this folks is why, so many people who are in debt over their
heads, and can't seem to get out. Because they do not realize
the sins of the past follow you for a minimum of 7 years and even
longer in some circumstances.

However if you can start tomorrow (like this author did years ago),
you can bring up a score by 100 points in less than a year.

And here is a million dollar tip (he us loud and clear)......

1. Get a checking account if you dont have one. Consider one
with no service charge. Many banks require only that your
balance not go below $500 to not be charged a service charge

on your account for that month. You need to check out the

different accounts!

2. Set up a FREE bill payer account that is linked to your checking.

3. Enter "all" recurring bills into your bill payer system. Be sure
the date you choose for the payment to be made is 7 days prior

to the due date. If you don't your payment through bill payer

could arrive late and you have defeated your purpose.

The recommendation to put all recurring bills (utilities, mortgage

payment, everything that comes on a statement every month)

into that account.

Now you will say, yeah, but the utility bill changes monthly. OK,

so talk with your utility company and get yourself on a budget plan

with them. The budget plan adds up the total costs of the utility

for the past 12 months, divides it by 12 and provides you the

average monthly amount.

If you opt for the budget plan process, your will pay a fixed fee

each month. Whatever that fee is, add $5 to your monthly

payment so you build a small reserve. Do that with each utility,

including your cell phone.

(Cell phone is harder to do)....

For me, I looked at my largest month and made that my average

and I know of no cell phone carrier who will allow budget plans so

I just send them that estimated fixed amount I figured out, and it

just overpays and builds a credit balance month after month.

Trust me, the bill payer process takes away the responsibility of

having to remember when to send bills. It will do it for you.

But remember, you to review the bill payer account at least once

a month. Just to see if you need to change anything.

By the way, I forgot to mention, is an SAFE ONLINE INTERNET

PROCESS with tons of security on it by the bank.

This account allowed me to make my payments each and every

month ON TIME EVERY TIME --- and that is precisely what the

credit bureaus measure to determine your score.

Like I say, this tip alone, brought my credit scores up 100 points

to 660 in about 12-14 months. Today my score sits at 802 and

has been in the mid to high 700's for many years! My wifes'

scores are even higher than mine! And think of the savings!