What does it cost you when you have a low FICO Score?

For auto loans:

Example: A $30,000 2024 Toyota Camry LE with $3,000 downpayment not including sales tax.Compared to a Toyota Financial Services qualification, you will be paying 6.8 to 9.7 times more interest depending on your FICO scoreThat is $13,500 more in interest for a Subprime borrower compared to a qualified borrower with Toyota.

  APR Interest Monthly Total Total Interest
Toyota Financial 2.75% $594.65 $28,543.20 $1,543.20
600-699 17.16% $781.32 $37,503.36 $10,503.36
451-599 22.18% $853.30 $40,958.40 $13,958.40
450 or lower 23.65% $875.03 $42,001.44 $15,001.44

For a home mortgage:

The estimated mortgage rate is based on an average U.S. single-family home price of $425,000 with a 20% downpayment and a 30-year fixed-rate mortgage.

A Subprime borrower will require a higher downpayment of up to 35% and a rate of 10% or higher.Compared to a Prime borrower, Subprime borrowers will pay over $280,000 more!

If you are selling your home in 10 years. The subprime borrower will still owe $309,190 vs Prime borrows $289,881 to pay off the bank.

FICO Score National Average Mortgage APR Monthly Total Paid Interest Paid
Subprime* 10% $2,984 $1,074,146 $734,140
620 - 639 8.31% $2,569 $924,718 $584,718
640 - 659 7.77% $2,441 $878,580 $538,580
660 - 679 7.34% $2,310 $842,468 $502,468
680 - 699 7.12% $2,290 $824,200 $484,220
700 - 759 6.95% $2,251 $810,223 $470,223
760 - 800 6.73% $2,201 $792,259 $452,259

Kornerstone Living

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