Credit Utilization Affects Your Score

Posted by on Nov 30, 2021 in Uncategorized | 0 comments

Credit utilization reflects how much of your available credit is being used at a given time. Lower credit utilization indicates that a borrower is not heavily relying on their credit and that they are using their credit responsibly. Is calculated by dividing your total credit card balances by your total limits. The higher the percentage, the higher the risk which adversely affects the credit score according to most of the companies. It is recommended that your credit utilization be under 30% to positively impact your credit score. If the available limit on a credit card is $12,000 and their...

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Larger Payment, Shorter Term, Bigger Savings

Posted by on Nov 23, 2021 in Uncategorized | 0 comments

Some people consider a house payment as basic as monthly utilities but with a plan and some discipline, you can be mortgage free. Consider a person borrowed $300,000 at 3% for 30 years, the principal and interest payment would be $1,264.81 and at the end of 12 years, the unpaid balance on the mortgage would be $210,900. If that same person had financed the home on a 15-year term at 2.5%, the payments would have been $2,000 but the unpaid balance at the end of 12 years would be $69,310. The homeowner will have a larger equity but they have also had to make higher payments. 15-year mortgages...

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Have you checked these lately?

Posted by on Nov 16, 2021 in Uncategorized | 0 comments

Homeowners know the need to periodically check certain things around the home to ensure that things operate properly and efficiently. If maintenance is required, it may be less expensive to take care of it early rather than waiting until it is not working at all. Checklists are helpful because it requires little effort to know what must be done. They are usually concise and provide enough information to complete the task. These items apply to most homeowners but in no way offer a comprehensive list. Vacuum dryer exhaust … not only does it affect the efficiency of your dryer itself, the...

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Uncle IRRRL wants to refinance your VA loan

Posted by on Nov 9, 2021 in Uncategorized | 0 comments

You don’t have to have an Uncle IRRRL but you must be a veteran with a current VA-backed home loan. IRRRL is an acronym for Interest Rate Reduction Refinance Loan. To refinance with this program, also called the VA Streamline, the loan must provide a net tangible benefit (NTB) which would be in the financial interest of the Veteran. Obtaining a lower interest rate is usually the reason behind refinancing but there needs to be enough difference in the current and the new mortgage to justify the expenses incurred. Significantly lower payments or a shorter term are examples of acceptable...

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Buy Before You Sell Options

Posted by on Nov 2, 2021 in Uncategorized | 0 comments

The decision to buy first or sell first, has always been a little of the “Which came first: the chicken or the egg?” type of question. Is it better to buy another home before you sell your current one or sell the current one before you buy the replacement? Some buyers don’t have a choice because they need the equity out of the current home to purchase the new one and possibly, their income limits their ability to qualify for having both mortgages at the same time. However, some buyers, with sufficient financial resources, may have other options available to facilitate the...

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Removing or Adding a Person to a Loan

Posted by on Oct 26, 2021 in Uncategorized | 0 comments

In divorce situations, it is common, for the spouse who keeps the home to refinance to remove the other spouse from the loan. Equally as common, first-time buyers who don’t have enough income to qualify may ask a parent to co-sign and must add their name to the mortgage. Another situation that requires removing or adding a person to a loan could be to qualify for a better interest rate. The difference in a minimally acceptable credit score and something that might be considered “good” could be as much as a 0.5% higher rate for the term of the mortgage. Consider that a...

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