According
to
the

study‘s
methodology,
the
analysis
“combines
publicly
available
data
with
modeled
scenarios
to
estimate
the
financial
benefit
of
raising
a
credit
score
to
760,
and
how
long
that
improvement
might
take.”

Variation
across
states

Across
most
states,
it
takes
18
to
36
months
to
raise
an
average

FICO
score
to
the
760
prime
threshold,
assuming
an
improvement
of
about
20
points
per
year.
Mississippi
and
Louisiana
require
the
longest
timelines,
with
borrowers
needing
4
years
and
3.5
years
of
consistent
progress,
respectively.

At
the
opposite
end,

Minnesota
offers
the
fastest
path,
with
an
average
timeline
of
just
0.9
years,
due
to
a
high
statewide
average
score
of
742.

Wisconsin,
Vermont
and
New
Hampshire
also
have
relatively
short
timelines,
all
below
1.2
years.

Most
other
states
fall
in
the
middle
range,
including

Florida
at
2.65
years
and
Texas
at
3.25
years.

While
the
760
credit-score
threshold
for
the
best

mortgage
rates
is
consistent
nationwide,
the
financial
impact
of
reaching
that
level
varies
widely
by
state.

In
California,
for
example,
borrowers
who
raise
their
score
to
760
could
save
roughly
$42,753
over
the
life
of
a
30-year
loan.
In
Texas,
savings
reach
about
$26,881,
but
borrowers
face
one
of
the
highest
proportional
penalties
for
scores
below
760,
exceeding
10%
of
the
total
loan
amount.

Nationwide,
borrowers
can
save
between
$10,000
and
$46,000
in
mortgage
interest
by
improving
their
credit
to
760.
States
with
higher
median

home
values
see
the
largest
absolute-dollar
savings.
Hawaii
has
the
largest
potential
savings
nationwide,
with
the
study
finding
that
borrowers
who
improve
to
a
760+
score
could
save
up
to
$46,206.

Hawaii
was
followed
by
California
and
Massachusetts,
with
savings
of
$42,753
and
$36,022,
respectively.
At
the
opposite
end
of
the
spectrum,
borrowers
in
West
Virginia
could
save
$9,547.

In
high-cost
states
such
as
Hawaii
and
California,
the
savings
from
a
760
score
can
equal
more
than
40%
of
annual
household
income.

Alabama,
Mississippi,
Georgia,
Louisiana
and
Texas,
meanwhile,
carry
the
steepest
proportional
rate
penalties
for
sub-760
borrowers.

“This
data
reinforces
just
how
central
credit
preparation
is
to
homebuying
affordability,”
said

Max
Slyusarchuk,
CEO
of
AD
Mortgage.
“Two
borrowers
with
similar
incomes
can
experience
dramatically
different
buying
power
depending
on
their
credit
score
and
the
state
in
which
they
purchase.
Even
a
20-
or
30-point
difference
in
FICO
can
mean
tens
of
thousands
of
dollars
over
the
life
of
a
mortgage.”

The
study
combined
publicly
available
data
with
modeled
scenarios,
including
estimated
timelines
for
improving
scores,
differences
in
30-year
mortgage
interest
payments,
and
the
impact
of
credit
on
affordability
relative
to
state
household
incomes.

All
calculations
assume
a
30-year
fixed-rate
mortgage
with
a
15%

down
payment
based
on
state
median
home
prices,
the
study
noted.