Higher FICO Scores = Lower Monthly Payments

FICO scores range from about 300 to 850 and exhibit a left-skewed distribution with a US median around 723. A score above 720 is considered to be “good credit,” and a score below 620 is considered to be sub-prime credit. Higher FICO Scores = Lower Monthly Payments A difference of 3% for the average $150,000 home mortgage could mean more than $100,000 in extra interest to the sub-prime borrower over the life of the loan.

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