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"Select Your Credit"
Explanation
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Score Credit Grade
720
and up AA
700 to 719 A
680 to 699 A-/B+
660 to 679
B+/B
640 to 659 B
620 to 639 B-/C+/C
600 to 619
C/D
580 to 599 D/F
579 and below F
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| Excellent/Good Credit (AA, A,
A-/B+, B, B-/C+/C, C/D) |
Your FICO Score will
range from 800 - 619. You wil have a various options
from our loan programs including Interest Only Loan
Rates. Below are advantages / disadvantages for each
index. |
| Damaged
Credit (D/F, F) |
Your FICO Score will
range from 580 and below. In most cases you will be
presented by 2 year fixed, 3 year fixed or 5 year fixed loans
as they offer lower rates. Prepayment
Penalty may be necessary in some loan
scenarios. |
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For Interest Only Loans:
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Constant Maturity Treasury
(CMT) -- The CMT indices are volatile and move with the market.
They reflect the state of the economy, and respond quickly to
economic changes. |
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12-Month Treasury Average
(MTA) --It is more steady than the
CMT index. The MTA index generally fluctuates slightly more
than the COFI, although its movements track each other very
closely. |
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11th District Cost of Funds
Index (COFI) --This index rise
(and fall) more slowly than rates in general, which is good
for you if rates are rising but not good for you if rates are
falling. |
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Certificate of
Deposit Index. (CODI)--The 12 month average of the monthly average yields on
the nationally published 3-Month Certificate of Deposite
rates. |
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Cost of Savings Index
(COSI) --The COSI Index consists mainly upon yields of bank's
CDs in the 11th District. Hence, the PRIME rate really doesn't
affect the Index. These loans are extremely stable because the
Credit Unions and Banks have NOT dramatically increased the
interest rates on what they pay back to the consumer on
checking, savings, money market accounts and C/D's.
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London Inter Bank Offering
Rates (LIBOR) --LIBOR is an
international index, which follows the world economic
condition. It allows international investors to match their
cost of lending to their cost of funds. The LIBOR compares
most closely to the CMT index and is more open to quick and
wide fluctuations than the COFI. |
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Prime Rate
--The
Prime Rate is the interest rate charged by banks for
short-term loans to their most creditworthy customers whose
credit standing is so high that little risk to the lender is
involved. Only a small percentage of customers qualify for the
prime rate, which tends to be the lowest going interest rate
and thus serves as a basis for other, higher risk loans.
The rate is almost always the same amongst major banks.
Adjustments to the prime rate are made by banks at the same
time, although, the prime rate does not adjust on any regular
basis. The prime rate is not a very volatile index however it
generally rises quickly but declines very slowly.
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