Study Finds Disparate Credit Scores Can Cost Home Buyers

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Mortgage Research Network, Columbia, Mo., released a new study finding that high-credit score buyers buying a home with a low-credit spouse could pay an average additional $63,000 over their average homeownership tenure.

That works out to an average of $437 in additional cash per month, or a 14.4% increase.

Mortgage Research Network defined a high-credit score buyer as someone with a score above 760, and defined a low-credit score buyer as someone with a score below 640.

The added $63,000 come from a mix of higher interest rates, steeper mortgage insurance premiums and more expensive homeowners insurance.

“Research has long shown that couples with similar and higher credit scores are more likely to stay together, but our study highlights another important reason to pay attention to credit before tying the knot,” said Tim Lucas, Lead Analyst at Mortgage Research Network. “Beyond relationship stability, a partner’s low credit score can significantly increase the cost of buying a home, most people’s biggest investment, by thousands of dollars over time. Understanding these financial impacts early can help couples make smarter decisions together.”

The average cost added to a home did vary depending on location, the study found. For example, in San Jose, Calif., it could add $1,049 a month, followed by San Francisco at $926, San Diego at $751, Los Angeles at $671 and Seattle at $664.