At Freddie Mac, which buys mortgages from lenders, FICO scores are one of many variables that go into the company's mortgage scoring system, known as Loan Prospector. Other factors include the applicant's income and savings, and the size of a down payment. Another factor you can control is the type of loan you choose. And they are more significant when purchasing a new home rather than refinancing. That's because when homeowners refinance at lower rates, they automatically reduce their monthly payments, thereby improving their financial position.
Clever calculations can help keep the lid on payments.
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