Mortgage Loans
One, two or three percentage points will make a big difference in how much a mortgage costs the consumer. The chart below shows the difference in costs of a 200,000 mortgage for borrowers of Excellent, Average and Poor credit.
Credit |
Rate |
Monthly |
Monthly Cost |
Total cost |
Excellent |
5.75 |
1,168.00 |
0.00 |
0.00 |
Average |
7.75 |
1,433.00 |
265.00 |
95,400.00 |
Poor |
10.75 |
1,867.00 |
699.00 |
251,640.00 |
|
Auto Loans and Vehicle Financing
Smaller loan costs can be dramatic. The following table shows the difference Excellent, Average or Bad credit can make on a loan of 15,000 over five years.
Credit |
Rate |
Monthly |
Monthly Cost |
Total cost |
Excellent |
7.00 |
298.00 |
0.00 |
0.00 |
Average |
9.00 |
312.00 |
14.00 |
840.00 |
Poor |
12.00 |
332.00 |
34.00 |
2,040.00 |
|