Your Credit Score and Your Monthly Payments

How does a credit score affect your monthly payments on a home loan?

Your credit score can have a significant impact on your monthly payments when applying for a home loan. Here’s how it affects it:

  1. Interest Rate: One of the most significant ways your credit score influences your monthly payments is through the interest rate you’re offered. Lenders use your credit score to assess your creditworthiness, and borrowers with higher credit scores are considered less risky. As a result, individuals with higher credit scores are more likely to qualify for lower interest rates on their home loans. Lower interest rates translate to lower monthly mortgage payments.
  2. Loan Approval: Your credit score plays a crucial role in whether you’ll be approved for a home loan or not. Lenders have different credit score requirements, but a higher credit score generally increases your chances of getting approved. A lower credit score could lead to loan denials or require you to apply for loans with less favorable terms, potentially resulting in higher monthly payments.
  3. Down Payment Requirements: In some cases, a lower credit score might lead lenders to require a higher down payment as a condition for approving the home loan. A larger down payment can reduce the loan amount and, consequently, lower your monthly mortgage payments.
  4. Mortgage Insurance: If your credit score is below a certain threshold, you might be required to pay private mortgage insurance (PMI) or other mortgage insurance premiums. Mortgage insurance is typically required for borrowers with down payments below 20%. The cost of mortgage insurance adds to your monthly expenses, increasing your overall monthly payments.
  5. Loan Terms: Borrowers with excellent credit scores may have more flexibility in negotiating favorable loan terms, such as the length of the loan (loan term). Opting for a shorter loan term can increase monthly payments but save you money on interest payments over the life of the loan.
  6. Jumbo Loans: If you’re seeking a jumbo loan (a loan that exceeds the conforming loan limits set by government-sponsored enterprises), lenders may have stricter credit score requirements. Having a higher credit score can help you qualify for a jumbo loan and secure more favorable terms.
  7. Refinancing Opportunities: A good credit score can also make it easier to refinance your mortgage in the future. If interest rates drop or your credit score improves over time, you may have the opportunity to refinance your mortgage for better terms, potentially lowering your monthly payments.

In summary, your credit score is a crucial factor in determining the interest rate, loan approval, and loan terms you’ll receive for your home loan. By maintaining a good credit score and managing your credit responsibly, you increase the likelihood of securing a more affordable home loan with lower monthly payments.


6640 Bracken Drive, Minnetrista, MN

Woodland Cove, better than new construction. Large stunning home that offers the best of both worlds – the benefits of new construction without the downsides. This property boasts a premium walkout lot that offers privacy and tranquility, with beautiful wooded views from both the deck and new lower level patio that are sure to take your breath away. Inside, you’ll find a well-appointed home with upgrades galore. Post-close finish details are evident throughout the property. With more than $40,000 in new landscaping, the exterior of the property is just as impressive as the interior. Boasting a hard to find extra wide and extra deep garage, complete with a drain and heat. Compared to new builds with less desirable lots, this property offers mega value when compared to new construction. Do no miss this opportunity!


Benefits of Title Insurance

Title insurance provides protection to both lenders and owners against losses due to defects in the title of a property. Some benefits of title insurance are:

  • Protection against title defects: Title insurance protects against financial losses that may result from title defects such as liens, encumbrances, and defects in the title that existed prior to the purchase.
  • Peace of mind: Title insurance provides peace of mind knowing that the title has been thoroughly researched and cleared, and that any issues with the title will be resolved by the title insurance company.
  • Cost-effective: The cost of title insurance is a one-time fee paid at closing, making it a cost-effective way to protect your investment.
  • Transferability: Title insurance remains in effect for as long as you own the property and can be transferred to future owners, providing ongoing protection.
  • Smooth closing: Title insurance ensures a smooth and timely closing process by identifying and resolving any title issues before closing.
  • Lender requirements: Most lenders require title insurance as a condition of lending, so obtaining title insurance is necessary to secure financing for the purchase of a property.

Title insurance also provides protection against various title defects that may arise during the course of property ownership, such as:

  • Forged or fraudulent documents, including deeds, mortgages, and wills, that could result in a loss of property rights
  • Improperly recorded legal documents that could affect the ownership or transfer of the property
  • False impersonation of the true landowner or undisclosed heirs that could create conflicting claims to the property
  • Errors in public records or mistakes in legal descriptions that could affect the accuracy of the title search
  • Claims of creditors, tax liens, or other encumbrances on the property that could result in a financial loss
  • Issues related to marital status, including conveyances by undisclosed divorced spouses or conveyances made by persons falsely representing their marital status
  • Issues related to capacity, including conveyances by minors, persons lacking legal capacity, or personal representatives and trustees who lack the legal authority to act
  • Conveyances in violation of public policy or that affect the rights of military personnel protected by federal laws
  • Eminent domain or condemnation takings that could result in a loss of property rights
  • Special assessments or real estate homestead exceptions that could affect the property’s value or use
  • Utility easements and other interests in the property that may not be apparent from the public records
  • Probate matters, including intestate estates and matters related to the administration of estates and probate of wills of missing persons who are presumed deceased
  • Issues related to community property or community property laws

By providing coverage against these and other potential title defects, title insurance helps protect the investment of property owners and lenders, and provides peace of mind knowing that any covered issues will be resolved by the title insurance company.

Overall, title insurance provides peace of mind and protection against potential financial losses, making it an essential component of any real estate transaction.


221 1st Ave NE, #6, Minneapolis, MN

Come see this spectacular end-unit with many updates throughout. Contemporary layout on the main level is perfect for entertaining. Chef’s kitchen is well equipped with high end appliances. Beautiful deck with pergola provides a perfect place to relax outdoors. The upper level offers a master suite with large en suite bath and closet, second bedroom, additional bathroom, laundry area, and a loft that can be converted to additional bedroom. Lower level features tiled 3/4 bath and additional bedroom/flex space. Two car attached garage is wired for electric vehicles on both sides of the garage. The house is equipped for with Google Home Switches and Smart Home Technology to control lights, cameras and security system. Unbeatable location just steps away from shops, restaurants, and beautiful parks along the river. Bike to North Loop and Downtown Minneapolis.


739 Woodland Hill Court, Medina, MN

Better than New Construction!

This stunning and spacious Wayzata Schools home boasts room to work, play, relax and entertain! Extensive improvements since completion just 3 years ago mean this house is truly ready to move-in and enjoy. Situated on a quiet cul-de-sac, this home has large rooms with an open floor plan, awesome natural light, and all the necessary luxuries to make this a massive value when compared to new construction. Why wait to build? This home is ready to host you and guests. Unpack and enjoy the summer here!


404 Terning Way, Howard Lake, MN

Spacious, Move-In Ready Home Close to Howard Lake & Dutch Lake

Welcome to 404 Terning way! Located close to Howard and Dutch Lake, this beautiful, move-in ready home offers open concept living and vaulted ceilings on the main level. Unfinished basement offers opportunity to add a bedroom and bathroom to build instant equity. Spacious 3 car garage. Soak up the sun in your open and flat backyard. Don’t miss out on this beautiful home with unfinished potential!


4660 104th Lane NE, Circle Pines, MN

Move-In Ready Home with Open Living Spaces

4 Bedrooms / 2 Bathrooms / 2 Car Garage / 0.25 Acres

Don’t miss this beautifully updated home on a corner lot with cherry trees, mulberry trees, Concorde grapes, and perennials. Enjoy open space living on the main level and cozy up in your living room with wood burning fireplace. Spacious kitchen features double sink, SS appliances, custom cabinets with wall pantry, and an extra long breakfast bar. Finished basement features large family room perfect for lounging or game nights. Enjoy the sun in your sunroom or large deck. This impeccable home in conveniently located within minutes to parks, school, shopping, and restaurants.


4801 Vallacher Ave, St. Louis Park, MN

Sophisticated Charmer in Minikahda Vista

4 bedrooms / 4 bathrooms / 2 car garage / 3,648 sqft / 0.16 acres

Don’t miss this beautiful home located on a corner lot in the highly sought-after Minikahda Vista neighborhood. The home has been modernized but maintained much of its original charm- hardwood floors, coved ceilings and archways, large windows throughout, and enameled woodwork. Open concept dream kitchen is well equipped with a large island, eat up bar, quartz countertop, gas stovetop, SS appliances, and plenty of storage. Large main floor bedroom and tiled full bath. Retreat to your luxurious master suite with a walk-in closet & spa-like bathroom. There are two additional spacious bedrooms, a laundry room, and a full bath on the upper level. The lower level features 2nd family room, playroom, exercise room, utility room, and storage room. The fully fenced-in backyard has been updated with beautiful landscaping, patio, deck, and firepit circle. The location can’t be beaten with easy assess to restaurants, coffee shops, parks, aquatic center, and freeways. Come see it before it’s gone!

Closed Sales

7202 Robinwood Draw, Woodbury, MN

Beautifully Updated Woodbury Townhome Near Ojibway Park

Nestled in a quiet cul-de-sac, this beautifully updated townhome is steps away from Ojibway Park. The well-equipped kitchen is open to the dining room and living room. All new kitchen cabinetry with soft closed doors/drawers, quartz countertop, and farmhouse sink. New tile flooring in entryway, dining room, and kitchen. Enjoy the sun on your large wooden deck with views of Ojibway Park. New interior doors and trim work. Two generously sized bedrooms with new organization systems in all closets throughout the home. The upper level has been freshly painted. Unfinished lookout basement provides the opportunity to build instant equity. The home is conveniently located close to many parks, Woodbury High School, shopping, dining, and easy access to highways. Don’t miss your opportunity to own this move-in-ready home in Woodbury with great equity potential! 

Closed Sales

1519 11th Ave SE, Forest Lake, MN

Impeccable Home Ready For Life at the Lake

Wake up to the beautiful sound of singing birds in this impeccable home within walking distance of a Forest Lake public boat launch! The home has been well maintained and updated over the years. Extensive exterior upgrades including improved grading, professional landscaping, iron fence, Tuff Shed, etc… too many to list! Generously sized heated 3 car garage with epoxy flooring, extra washer, and utility sink. Additional concrete pad next to garage for boat storage. Inside you’ll find a well-equipped kitchen with SS appliances and tiled backsplash. The spacious living room, with gas fireplace, flows into sunny 3 season porch. 3 bedrooms on the main floor, one with ensuite 1/2 bath. Additional tiled full bath, guest 1/2 bath, and laundry/mudroom complete the main level. Private master suite in the upper level with full bath including jetted tub, walk-in closet, and additional storage. Build instant equity by finishing the basement. Egress window in place makes it ready for an additional bedroom. The home is located on a corner lot in a quiet neighborhood with mature trees and other well-maintained homes. Live by the lake without paying lakeshore home prices! Many other updates including mechanical/structural improvements, see supplement for details. Come see this before it’s gone!