In two words, "a lot." The interest savings from lower-cost loans, available to those with high credit scores, are especially evident with long-term loans such as a home mortgage. Here's an example. Suppose you want to take out a $150,000, 30-year fixed-rate mortgage. Borrowers with a high FICO credit score of 760 to 850 might pay 5.75% interest, which translates into a monthly payment of $875.36. Those with a lower credit score of 620 to 659 might pay 7% interest or $997.96 monthly. The difference in payments is $122.60 per month or $44,136 over the life of the loan ($122.60 x 360 payments)! Note that these interest rates may not be the exact ones in effect at this time. Rather, this example is meant to show how a difference in loan rates, based on credit scores, can really add up over time.
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