A lackluster credit score could bring up your interest rate and set the stage for years of higher payments. But if you work on improving your score, you'll end up paying less for your home loan.
Many of us don't pay attention to our credit scores until the time comes to borrow money. But what you may not know is that having a credit score that's good, but not great, could cost you thousands of dollars in mortgage interest.
In a recent LendingTree report, borrowers with the best credit scores (760 and above) were offered APRs of 4.18% in October, versus 4.44% for those whose scores ranged from 680 to 719. All told, those with better credit will end up saving over $12,000 over the life of their loans, assuming their borrowing is on par with the average.