The Credit Model Is Getting an Update
Boring Mortgage News
New Credit Model on the Horizon
So for the last 20 years the “Classic” FICO credit model for mortgages was the FICO 5, FICO 4 and FICO 2, and that’s where the mortgage credit score comes from. This would often cause confusion from consumers who rely on companies who use the FICO 8 Model which gives you a general idea of what your score is when the truth is, we are all looking for different things.
So if I pull your credit, a car loan pulls your credit and a credit card pulls credit, we are all going to come up with different numbers because we are all looking at different things.
So What’s All This Mean
The new model is going to take into account a wider array of data and create thicker credit profile. Let’s say, for example you listened to certain radio hosts and believe credit cards are bad. Well, that non use of credit didn’t hurt your score, but it also didn’t help it because there’s no history. Even though you paid things like rent, utility and phone payments. According to their website this scoring model will help those more “Cash dependent” borrowers show a score.
This is all pretty recent stuff with more information rolling out on it daily so to sum it all up
This is a good thing coming for consumers.
Less Boring Mortgage News
As I was loudly saying, “WHY IS IT SO COLD,” I noticed the average for the 30-year fixed rate is still vibing in the mid 6% range.
Keep in mind that this is a national average, and can change a bunch based on down payment, credit, property type, occupancy type, and program type. If you want to dive deeper, holler at me.
Source: FICO, VantageScore, HousingWire, & Mortgage News Daily. This is not a commitment to lend and does not guarantee the availability of any particular product or interest rate. Rates/terms illustrated may not be available through BankSouth Mortgage.
Blog post date: May 4, 2026
