Filed under: Buying, Home Loans, Real Estate Tips, Refinancing | Tags: buying, credit score, home loans, refinancing
You Can Keep Your Good Credit During This Recession – If You Know The Score – SOURCE: RISMedia
Follow the link above to read a few tips and reminders about retaining or improving your credit score* during tough economic times. It’s especially important for two groups of people: 1) Buyers seeking to qualify for financing, and 2) owners seeking to refinance. A credit score at or above 620 is essential in today’s loan market. If you’re not there yet, it’s a good time to start working toward that goal.
*A credit score is a measure of risk used by lenders to determine the amount of credit to make available to a particular person; it is based primarily on credit history, and it typically ranges from 300 (poor) to 850 (excellent). An individual who has a favorable history of repaying debt obligations (e.g. credit cards balances, home mortgage payments, car loans) in a timely manner consistent with the terms of repayment, is given a higher score than one who makes late payments or fails to pay each month’s balance in full.
Mortgage Rates Hit 4.56%, Record Low – SOURCE: Yahoo! News.
What does this mean for you?
For those home owners who qualify, refinancing an existing home loan can be a money-saving solution to high monthly mortgage payments. To estimate the amount of interest savings you may realize by refinancing, check out the Mortgage Refinance Calculator on Realtor.com.
For qualified home buyers, lower is always better! Purchasing your home now with a low interest rate loan will give you budgetary peace of mind when you factor an affordable mortgage payment into your monthly expenses. Use the Home Affordability and Mortgage Calculator tools on Realtor.com to establish your general price range and estimate your monthly home loan payment.
Unfortunately, many home owners seeking to refinance and buyers preparing to purchase are unable to take advantage of these new interest rate lows: stringent lending standards, underwater mortgages, unemployment, low credit scores, and the cost of mortgage insurance premiums and loan points, have made it difficult or unprofitable for some to secure these attractive rates. But don’t let the uncertainty stop you from reviewing your options! A knowledgeable mortgage broker, loan officer, or banking adviser can determine your eligibility, discuss the costs of securing a new or refinanced loan, and, if you don’t currently qualify, provide you with helpful tips for building a favorable financial and credit record that will strengthen your loan application in the future.
If you have any questions about refinancing, call or e-mail me for assistance!
David Companik, Realtor® | Blog 