Interest Rate and Credit Score

[EACarlson]

Fico scores top out at 850.

FICO 8 tops out at 850, other FICO scores have different ranges, generally those more geared towards mortgage and auto loans.

You lost me…. If you live in the United States, you are taking part in a democracy. I probably just worked too hard today!

The United States is not a democracy, it is a republic.

 

[GAN]

FICO 8 tops out at 850, other FICO scores have different ranges, generally those more geared towards mortgage and auto loans.

The United States is not a democracy, it is a republic.

Technically, it’s a Democratic Republic …a form of democracy. It’s been established as a blend -most people don’t realize that.

 

[GAN]

The US is a constitutional republic, not a democracy.

Yup…That would be a democracy….

 

[DCLMP]

FICO 8 tops out at 850, other FICO scores have different ranges, generally those more geared towards mortgage and auto loans.

The United States is not a democracy, it is a republic.

If we were a democracy I doubt the majority would vote for these endless wars. The countries we go to war with or back in proxy wars aren’t democracies and never will be. The “we need to defend democracy” rallying cries always make me laugh.
Most people don’t know the difference.

 

[GAN]

If we were a democracy I doubt the majority would vote for these endless wars. The countries we go to war with or back in proxy wars aren’t democracies and never will be. The “we need to defend democracy” rallying cries always make me laugh.
Most people don’t know the difference.

I’m sorry to break the bad news to you ….we ARE a democracy! And you’re right …most people don’t know the difference . There are many forms of democracy …we are just one

 

[DCLMP]

I’m sorry to break the bad news to you ….we ARE a democracy! And you’re right …most people don’t know the difference . There are many forms of democracy …we are just one

I wouldn't consider that bad news. Interesting way to start a discussion.

 

[Colleen27]

We're already in a proxy war with Russia. China is not our friend. I don't think anyone wants nuclear war, but I don't see anyone pushing for peace either.

Friend is too strong a word, but the economic relationship between our two nations is far too interdependent for active warfare. Snipping at one another via currency manipulation (China) or reining in business incentives (US), sure. But not open warfare.

Russia worries me more, but mostly because the person calling the shots there doesn't seem to be entirely rational by any account. I'd chalk that up to bias if it only came from US/Western sources, but even in outlets with a more favorable view of Russia (short of Russian state TV), Putin comes across as volatile and aggressive to the point of crossing into irrationality at times.

 

[DCLMP]

Friend is too strong a word, but the economic relationship between our two nations is far too interdependent for active warfare. Snipping at one another via currency manipulation (China) or reining in business incentives (US), sure. But not open warfare.

Russia worries me more, but mostly because the person calling the shots there doesn't seem to be entirely rational by any account. I'd chalk that up to bias if it only came from US/Western sources, but even in outlets with a more favorable view of Russia (short of Russian state TV), Putin comes across as volatile and aggressive to the point of crossing into irrationality at times.

I disagree with your take on the Russia(Putin) and Ukraine situation. There's a lot of history there and too complicated to get into. We instigated this war going back to the coup in 2014.... que the laughing emojis...but first do some research. The US is not some innocent force of good in all the crap that goes on in the world.

Yes, we have an economic relationship with China. We produce nothing and buy all their goods. I totally get that. None of these countries like us and don't think for one second they don't want the upper hand.

 

[GAN]

I disagree with your take on the Russia(Putin) and Ukraine situation. There's a lot of history there and too complicated to get into. We instigated this war going back to the coup in 2014.... que the laughing emojis...but first do some research. The US is not some innocent force of good in all the crap that goes on in the world.

Seriously now(no laughing emoji's "queued"), how much research have you done? First, John McCain called Putin out as a thug and a murderer years ago. Since, he has murdered his enemies/critics(think Litvinenko with polonium), imprisons dissenters, has assembled corrupt courts to convict opponents, supported al-Assad(Syria) in the deadliest war of the 21st century, and of course the most recent murder of Ukrainian civilians including children; the rape of Ukrainian women; torture; abductions; deportations; and likely had his proxies shoot down a Malaysian airliner killing 298 innocent people. Other than all that he's really a good guy......

 

[DCLMP]

Seriously now(no laughing emoji's "queued"), how much research have you done? First, John McCain called Putin out as a thug and a murderer years ago. Since, he has murdered his enemies/critics(think Litvinenko with polonium), imprisons dissenters, has assembled corrupt courts to convict opponents, supported al-Assad(Syria) in the deadliest war of the 21st century, and of course the most recent murder of Ukrainian civilians including children; the rape of Ukrainian women; torture; abductions; deportations; and likely had his proxies shoot down a Malaysian airliner killing 298 innocent people. Other than all that he's really a good guy......

Obviously you get your information from different sources than me. I going to disagree with you , but I appreciate the thoughtful post.

Probably not the best place to debate this.

We seem to got way off topic from mortgage interest rates.

 

[Snowflakey]

Fico scores top out at 850.

I thought so too - until mine showed higher! I did some research and found this:

Depending on the type of scoring model, a 900 credit score is possible

 

[DCLMP]

I thought so too - until mine showed higher! I did some research and found this:

Depending on the type of scoring model, a 900 credit score is possible

The ones bank use most often are Fico 5 and 8 which top out at 850. I know credit card companies use some funky ones to help you manage finances such as credit-wise. When you apply for a new card they usually use Fico 8.

 

[Kennywood]

Regardless of the credit score model, those with a high credit score and a mortgage are going to be penalized.

 

[Snowflakey]

Regardless of the credit score model, those with a high credit score and a mortgage are going to be penalized.

Right! Worked all these years to get where I am and now I'm going to be penalized. How is that the American way?

 

[Pea-n-Me]

Right! Worked all these years to get where I am and now I'm going to be penalized. How is that the American way?

We are moving more towards a socialist society.

 

[HeatherC]

We are moving more towards a socialist

And it is encouraging mediocrity. Why try and succeed if you are just going to be penalized for it.

 

[rigs32]

So, new borrowers with low credit scores will pay slightly lower fees than before (3.25% decreasing to 2.875%) and new borrowers with higher credit scores slightly higher than before (.25% increasing to .375%). Bad credit home buyers are still paying 2.5% more than good credit buyers. And this small shift has people up in arms about socialism?

Note: the numbers I quoted come from the example cited in this article- https://www.fastcompany.com/90887938/mortgage-changes-credit-score-higher-fees-explained-may-biden

 

[Pea-n-Me]

5/1/2023
Today, thirty four State Financial Officers from 27 states expressed deep concerns in a letter to President Biden regarding a Federal Housing Finance Agency (FHFA) rule to force Americans with good credit scores to pay more each month for their mortgages and crediting the additional payments to the loans of higher-risk borrowers.

https://www.myfloridacfo.com/docs-s...biden-mortgage-letter67.pdf?sfvrsn=dc38b9a3_2

 

[sam_gordon]

Can someone clarify...

Is this increase for people with "high" credit scores in the FEES or the INTEREST RATE?

If I understanding things correctly, the FEES are a one time charge that get rolled into the mortgage. If that's correct, on a $400,000 house, if you paid .25% in fees, that's $1,000. If you paid .375% in fees, that's $1,500. Numbers are from post #237.

So an extra $500 over the term of the loan to help others? If that's all this is, I really don't see the big deal.

 

[RamblingMad]

Can someone clarify...

Is this increase for people with "high" credit scores in the FEES or the INTEREST RATE?

If I understanding things correctly, the FEES are a one time charge that get rolled into the mortgage. If that's correct, on a $400,000 house, if you paid .25% in fees, that's $1,000. If you paid .375% in fees, that's $1,500. Numbers are from post #237.

So an extra $500 over the term of the loan to help others? If that's all this is, I really don't see the big deal.

It’s a fee between the lender and Fannie Mae when the lender securitizes a bunch of mortgages into a MBS and sells it to Fannie Mae. How the lender passes on this fee is up to each lender.

I posted last months and the new schedule for May 1st going forward fees. It’s a matrix of LTV and credit score by loan purpose type. You’ll have to run your own numbers to see if you’re potentially impacted and how much.