It’s no secret that having a better credit score can help save you money on your mortgage. But even though you know you could cut mortgage costs by bumping up your credit score, the amount of money you may be able to save is truly astonishing. According to a recent study from LendingTree, the average borrower with a “fair” credit score (between 580 and 649) will pay $261,076 in interest over the course of their mortgage. The average borrower with a “very good” credit score (between 740 and 799) will pay just $219,660. That means increasing your credit score from “fair” (between 580 and 649) to “very good” (between 740 and 799) could help you save a whopping $41,416.
The Takeaway: So, what does that mean for you? If you’re thinking about buying a home, it’s important to know your credit score—and, if necessary, to do what it takes to improve it so you can secure the best interest rates on your loan (and save a ton of money in the process).