SACAD: John Heinrichs Scholarly and Creative Activity Days


Empirical Undergraduate


In this research project, we are trying to reject the null hypothesis that credit score does not affect the interest rate on a mortgage loan. This is important because the majority of homeowners have financed their home using a mortgage loan, and the interest rate they receive depends on many different factors, including credit scores. If homeowners are aware that a higher credit score will effectively help them lower the interest rate they pay on their mortgage, they can work to improve it and save money. Our main findings indicate that there is a significant relationship between mortgage interest rates, combined loan to value, unpaid principal balance, original loan term, occupancy, property type, and whether they are a first-time home buyer. The data also suggests that credit score does indeed have a statistically significant effect on what kind of interest rate borrowers receive on their loans. A higher credit score will tend to lower the interest payment homeowners must pay on their mortgage.

Faculty Advisor

Dr. Sam Schreyer


Economics, Finance, & Accounting

Submission Type

in-person poster




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