To answer the question, we need to compare the monthly mortgage payments associated with Bob's current FICO score range and the lower score range he would be in if he doesn't repay the car loan.
Bob's current FICO score is 684, which falls into the 620-674 range. If he fails to repay the loan, his score would drop to 554, which falls into the 500-559 range.
The monthly payment for the FICO range 620-674 is \[tex]$1039.
The monthly payment for the FICO range 500-559 is \$[/tex]1238.
Next, we need to find the difference in these monthly payments:
[tex]\[
\$1238 - \$1039 = \$199
\][/tex]
This is the additional amount Bob would have to pay each month if his score drops due to not repaying the car loan. To find the annual difference, we multiply the monthly difference by the number of months in a year:
[tex]\[
\$199 \times 12 = \$2388
\][/tex]
Therefore, if Bob doesn't repay the car loan and his credit score drops accordingly, he should expect to pay \$2388 more annually on the mortgage.
