Understanding your credit before getting into a mortgage could prove to be a very smart idea, especially in the long run.  The difference in what you pay for your mortgage in interest could vary, sometimes into the hundreds of thousands.   Below will be a loan table.  There will also be a calculator, but keep in mind that this calculator only figures the loan payment only.  It does not calculate tax, and or pmi.

On February 17, FICO gave the following rate estimates for a 30 year-fixed $150,000 home mortgage: Actual rates may vary. This is just
scale to show comparison of interest rate to credit score. Note: apr* is usually different from interest rate.
Numbers really do matter when it comes to loans, especially mortgages.
                                                     

Adjustable-rate loans, also known as variable-rate loans, usually offer a lower initial interest rate than fixed-rate loans. The interest rate fluctuates over the life of the loan based on market conditions, but the loan agreement generally sets maximum and minimum rates. When interest rates rise, generally so do your loan payments; and when interest rates fall, your monthly payments may be lowered.

Amortization is the process by which the bank determines how much of your payment is applied to interest on your loan and how much goes towards paying back the principal. In the early years of a loan, most of the payment is for interest, with the principal being reduced only slightly with each payment. Annual percentage rate (APR) is the cost of credit expressed as a yearly rate. The APR includes the interest rate, points, broker fees, and certain other credit charges that the borrower is required to pay.

 Biweekly Mortgage is a mortgage that requires a payment every two weeks. Each is roughly half of what you would pay for a monthly payment. Paying every other week is the equivalent of making 13 full payments per year. Your mortgage amortizes much faster than it would with monthly payments.

 Broker, sometimes called a mortgage broker is someone in the business of arranging mortgages and other types of home loans, but does not actually lending the money. The broker's job is to get the borrower and the lender together. Brokers usually charge a fee or receive a commission from the lender.

 Closing or settlement is when the property is formally sold and ownership of the property is transferred to the buyer. The date for the closing is negotiated in the contract to buy the property. Closings are usually a scheduled for few weeks to a couple of months from the time of the offer to give the buyer time to have the property inspected, secure a mortgage and have an attorney review the title and/or deed to the property. The buyer actually accepts the loan from the lender and becomes responsible for paying it back. Usually all outstanding fees -- such as attorney's fees, real estate agents's commission, loan points -- are due at closing. Closing costs (sometimes called Transaction Fees or Settlement Fees are all of the costs you have to pay at closing. These may include loan origination fees; the cost of the title examination, abstract of title, title insurance, and property survey fees; fees for preparing deeds, mortgages, and settlement documents; attorneys' fees; recording fees; and notary, appraisal, and credit report fees. Under the Real Estate Settlement Procedures Act, the lender must supply the the borrower with a good faith estimate of closing costs within three days of the loan application. Conventional loans are mortgage loans other than those insured or guaranteed by a government agency such as the FHA (Federal Housing Administration), the VA (Veterans Administration), or the Rural Development Services (formerly know as Farmers Home Administration, or FmHA).

 Debt Payments Ratio compares your total monthly debt payments to your income. Lenders often use this ratio to judge your ability to repay a loan. To calculate your debt payments ratio, add your total monthly debt payments(excluding utilities) and your expected total monthly mortgage payment then divide that by your gross monthly income. Many banks want you to have a debts payment ratio of 36% or less - that is the total of your bills is 36% of your monthly income.

 Equity  is the difference between what your property is worth and how much you owe on your original mortgage loan(s). If your house is could sell for $100,000 and you owe $25,000 on your mortgage, you have $75,000 worth of equity. Escrow is the holding of money or documents by a neutral third party prior to closing. It can also be an account held by the lender (or service) into which a homeowner pays money for taxes and insurance.

 FHAor Federal Housing Administration (www.fha.gov) is part of the U.S. Department of Housing & Urban Development (HUD). FHA insures loans made by private lenders, sets nationwide standards for underwriting loans and housing construction.

 Fixed-rate loans generally have repayment terms of 15, 20, or 30 years. Both the interest rate and the monthly payments (for principal and interest) stay the same during the life of the loan.

 Home equity loan -- sometimes called a second mortgage -- is a loan using the equity in your house as collateral. Your equity is the difference between what your property is worth and how much you owe on your original mortgage loan(s). If your house is could sell for $100,000 and you owe $25,000 on your mortgage, you have $75,000 worth of equity. Banks may lend you up to 100% of your equity. See our article on Home Equity Loans for more information.

 Housing expense ratio is a number that many lenders use to judge your ability to repay a loan. Your housing expense ratio is calculated by dividing your expected monthly mortgage payment by your gross (before tax) monthly income. Remember your monthly mortgage payment includes the principal, the interest, your real estate taxes and your homeowner's insurance. Many lenders will give you a loan if your housing expense ratio is 28% or less - that is, you're spending 28% or less of your monthly income on your house.

The interest rate is the cost of borrowing money expressed as a percentage rate. Interest rates can change because of market conditions. Loan origination fee (often called 'points 'are fees charged by the lender for processing the loan. The fees are usually expressed as a percentage of the loan. A loan origination fee of 2% -- usually called '2 points' -- means you pay 2% of the total amount you borrow to the lender. Loan origination fees are usually paid in cash at the closing. Sometimes the money needed to pay the points may be borrowed as part of the mortgage - increasing the mortgage amount and the total you are required to pay back. Lock-in agreement refers to a written agreement between the lender and borrower defining the terms the lender is willing to give the lender for a loan. This will include the type of mortgage (fixed or variable rate), the interest rate and the length of the loan. If the lender charges loan origination fees, these will be included. The lender agrees that you can borrow money on the terms specified if you act within the time specified in the agreement -- usually 30, 60 or 90 days.  Overages are the difference between the lowest available price for a loan and what you agree to pay for that loan. Loan officers and brokers are not required to give you the lowest price for a loan. In many cases, loan officers or brokers are allowed to keep some (or all) of the overages as profit.

 Points or loan origination fees are fees charged by the lender for processing the loan. The fees are usually expressed as a percentage of the loan. A loan origination fee of 2% -- usually called '2 points' -- means you pay 2% of the total amount you borrow to the lender. Loan origination fees are usually paid in cash at the closing. Sometimes the money needed to pay the points may be borrowed as part of the mortgage - increasing the mortgage amount and the total amount you are required to pay back.

 Principal is the amount you borrow to buy your house. This will be the purchase price minus your down payment. (If you borrow money to pay some of the closing costs, such as points, that becomes part of the principal as well.)

 Private mortgage insurance (PMI) protects the lender against a loss if a borrower doesn't pay back the loan. It is usually required for loans in which the down payment is less than 20 percent of the sales price or, in a refinancing, when the amount financed is greater than 80 percent of the appraised value. Thrift institution is a generic term for savings banks and savings and loan associations. Transaction, settlement, or closing costs are all of the costs you have to pay at closing. These may include loan origination fees; the cost of the title examination, abstract of title, title insurance, and property survey fees; fees for preparing deeds, mortgages, and settlement documents; attorneys' fees; recording fees; and notary, appraisal, and credit report fees. Under the Real Estate Settlement Procedures Act, the lender must supply the the borrower with a good faith estimate of closing costs within three days of the loan application.

 VA or Department of Veteran's Affairs is a U.S. government agency that provides loans made to military veterans to protect the lender if the borrower can not repay the loan.