3. Unfortunately, Bryce doesn't have enough money to allocate towards such a huge down
payment, so he decides to put in his original $75,000 down payment. Besides, Bryce
is
concerned his credit score is a bigger problem, so he asks the bank how improving his
score would impact his loan application. They provide this chart:
FICO
Score
APR
760-850
5.935%
700-759
6.157%
680-699 6.334%
660-679
6.548 %
640-659
6.978 %
620-639
7.524%
4. If Bryce could raise his credit score to 760 and keep the $75,000 down payment, could he
afford his dream house?
a. Using this strategy, how much total interest would he pay over the course of the
loan?