Mortgage credit score Meaning and Definition
Mortgage credit score
Pronunciation
/ˈmoʊrɡɪdʒ kriˌdaɪt skɔr/
Part of Speech
Noun
Definition
A numerical rating that loan providers use to assess a borrower’s creditworthiness, typically ranging from 300 to 850, to determine interest rates and loan terms.
Etymology
The term “Mortgage credit score” is derived from the combination of “mortgage,” referring to the transaction of lending money to purchase or refinance a property, and “credit score,” which is a numerical representation of an individual’s credit history.
Usage Notes
In the context of mortgage lending, a Mortgage credit score is used to evaluate a borrower’s credit history, payment habits, and other financial factors to determine the likelihood of repayment. A higher Mortgage credit score can result in lower interest rates and more favorable loan terms.
Cultural References
Mortgage credit scores have been referenced in various TV shows and movies, such as “The Office” and “The Wolf of Wall Street,” highlighting their significance in modern financial transactions.
Idiomatic Expressions or Phrases
- “Good credit means a good mortgage credit score”
- “Check your mortgage credit score before applying for a loan”
Related Words or Phrases
- Credit report
- Credit history
- Mortgage loan
Collocations
- “Mortgage credit score affects loan interest rates”
- “Monitor your mortgage credit score for better loan terms”
Frequency of Use
Mortgage credit scores are widely used in the mortgage industry, with over 90% of lenders using them to evaluate borrowers’ creditworthiness.
Common Misspellings
- Mortgag credit score
- Motorcade credit score