According to an analysis of more than 25,000 loan quotes and purchase request on Zillow Mortgage Marketplace during the first half of September; almost 1/3 of Americans are unlikely to qualify for a mortgage because their credit scores are too low.
They found that 29.3% of borrowers have a credit score less than 620. The lowest rates went to 47% of borrowers with excellent credit scores of 720 or above.
Zillow Mortgage Marketplace quoted that during this period, borrowers with excellent scores got an average rate of 4.3% for conventional 30 year mortgages. Mid range borrowers with credit scores between 620 and 719 received rates between 4.73% and 4.44%. Those with credit scores below 620 received too few loans to calculate the interest rates received.
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- One-third ‘highly unlikely’ to get mortgage (money.blogs.time.com)