CHARLOTTE, N.C. — The Federal Reserve is expected to decide whether it will lower interest rates on Wednesday, but anyone looking to buy a home will need to look at more than just interest rates when trying to lock down a mortgage.
Regardless of what happens on Wednesday, a person's credit score could be the biggest factor in securing another loan.
The payoff for having an excellent credit score has rarely been bigger than now. The Wall Street Journal reported people with scores 800 and higher locked in an average interest rate of 7.15% from private lenders. That's compared to the average rate of 7.3% from central bank borrowers.
That's great news for folks with high scores because it gives them even more flexibility to shop around for lower rates. In North Carolina, a credit score over 800 can get buyers closer to 6.6%.
Banks used to have the lowest rates in town, but mortgage companies have taken that title. So long as that's the case, consumers with high scores will have a massive leg up when it's time to close on their next house.
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