How Credit Score Affects Mortgage Payment

How much does your credit score affect your mortgage payment?

We're indebted to Rhonda Porter, at RainCityGuide, a Seattle blog, for this insight:

The following are based on a 30-year, fixed-rate, conforming mortgage with a $500,000 sales price and a loan amount of $400,000, with taxes and insurance included, priced with one discount/origination point.

720 Credit Score = 6.00% (APR 6.149%). Principal & interest payment: $2,398/month. That is $65 a month (nearly 3%) less than for those with a credit score between 719 and 680.

719 - 680 Credit Score = 6.25% (APR 6.276%). Principal & interest: $2,463/month. that is $33 a month (1%) less than for those with a credit score between 679 and 660.

679 - 660 Credit Score = 6.375% (APR 6.529%). Principal & interest payment: $2,496/month.

Of course a borrower with a 719 or less credit score could always pay more in fees (points) to have the same rate as the 720 credit score borrower.