Let's solve the problem step by step to determine how much less per year Martina would have to pay on a [tex]$150,000 mortgage with her new credit score.
1. Identify the monthly payments for the old and new credit scores:
Looking at the provided table:
- For a FICO score of 665, the monthly payment is $[/tex]924.
- For a FICO score of 725, the monthly payment is [tex]$860.
2. Calculate the difference in the monthly payments:
Difference in monthly payments = Old monthly payment - New monthly payment
\[
924 - 860 = 64
\]
So, Martina saves $[/tex]64 each month with her new credit score.
3. Calculate the annual savings:
Annual savings = Monthly savings [tex]\(\times\)[/tex] 12 (months)
[tex]\[
64 \times 12 = 768
\][/tex]
Therefore, Martina would save $768 per year with her new credit score.
