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| How to improve your credit score
Understanding the lingo
Pride of Ownership Pride of ownership is the number one reason why people yearn to own their home. It means you can paint the walls any color you desire, turn up the volume on your CD player, attach permanent fixtures and decorate your home according to your own taste. Home ownership gives you and your family a sense of stability and security. It's making an investment in your future. Benefits of buying a house Drawbacks of buying a house  | With an apartment, you're limited to how much you can personalize your living space. With a house, you can do whatever your heart desires. | | With an apartment, you can move when the lease is up, but with a house, you have to sell it first. | | With a house, over time the mortgage balance decreases and equity builds. With an apartment, you gain nothing over time, except maybe a higher rent. | | With an apartment, the landlord is responsible for any repairs. With a house, you are the landlord. If it's broke, either you fix it or pay someone to fix it for you. | | With a house, there are homeowners exemptions you can take on your taxes. With an apartment there are tax exemptions too, but only for your landlord. | | With an apartment, you don't gain equity (the difference between the market value of the house and the outstanding mortgage balance), but you don't lose any either. With a house, equity can go up, down or stay as is.
But the biggest advantage to owning a house over renting an apartment is that your house belongs to you. It's your home, and that's pretty darn cool in itself. |
Lenders will check your credit record to see whether they're willing to loan you money, AND to see what interest rate to charge you.| Problems caused by bad credit | 1. Inability to get a loan
2. Higher interest rate if you do get the loan
3. Larger down payment required if you do get the loan |
Bad credit doesn't necessarily mean that you can't get a loan, but it does mean that you'll pay a higher interest rate, and you may have to have a larger down payment than otherwise.
This bears repeating: Bad credit doesn't just mean you might not get the loan in the first place, it means that if you do get the loan, you'll have to pay more interest, and you'll be required to make a larger down payment.Here's an example from MyFico.com in August 2006 about how credit scores might affect the interest rate -- and therefore the cost of the loan -- on a 30-year, $216,000, fixed-rate mortgage. The higher your FICO score, the lower your payments!
Note: The interest rates shown are for demonstration purposes only Credit Score | Interest
Rate | Monthly
Payment | 760 - 850 | 6.33% | $1,342 | 700 - 759 | 6.56% | $1,373 | 680 - 699 | 6.73% | $1,398 | 660 - 679 | 6.95% | $1,429 | 640 - 659 | 7.38% | $1,492 | 620 - 639 | 7.92% | $1,573 |
-- Michael Bluejay |
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How to improve your credit score
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| Hot tip |  Secrets Lenders Don’t Want You to Know!
The right or wrong decision when signing your home mortgage can mean thousands of dollars difference in interest paid. There are very important considerations to evaluate before you commit to a 15 or 30 year note. For many of us our mortgage payment is the most important financial decision we’ll ever make. Doesn’t it make sense to know as much as possible about the financing of our home? Take the time to thoroughly investigate all of your options!
Call The Home Team for 11 Secrets Lenders Don’t Want You to Know! (281)851-6310 |
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| Buyer's Tip |  Understanding Finance Options: (FHA, VA, Seller or Conventional Financing.)
There are a myriad of finance options available today. Make sure you understand what they are before committing to the standard, conventional 30 year fixed rate mortgage. Ask your lender about adjustable rate mortgages and FHA loans. The lender is required to give you this information as a course of law, but if they do not. Ask! |
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