If you’re looking at today’s mortgage rates you know that loans never really come with one price. Instead, there are different prices depending on how you structure your loan and how you qualify.

One factor that will influence your mortgage rate is your credit score. The higher your credit score, the greater the chance you’ll qualify for a lower rate. For example, on a scale between 300 and 850, someone with a score of 700 might qualify for a 5 percent mortgage rate while someone with a score of 630 might pay 6.25 percent for the same loan.

Read the rest of this entry »

Saturday

“5 reasons people don’t refinance“:

There are millions of homeowners out there who have already refinanced their mortgages. Some are even considering refinancing for a second time. However, it may surprise you that there are still many borrowers out there who haven’t refinanced. Here are five reasons why:

1. Small Loan Amount

Read the rest of this entry »

Saturday

“Frightened by your upcoming ARM reset?”

There’s nothing scarier than future uncertainty. When it comes to a mortgage and the monthly payments, the majority of borrowers like the stability that comes with a long-term, fixed-rate loan. You can eliminate the fear of an unknown future mortgage payment by choosing a fully fixed-rate mortgage.

Yet with conforming adjustable rate mortgage (ARM) interest rates hovering in the low-to-mid threes, there are more and more borrowers out there who are tempted to refinance back into an ARM. When someone asks me whether or not they should refinance back into an ARM vs a fixed-rate loan, my response is always akin to that old saying, “If the shoe fits, wear it.”

Read the rest of this entry »

Saturday

“Elimination of Mortgage Interest Deductions Gains Steam“:

Economist Mark Zandi encouraged the most unlikely group of professionals to jump on the ‘eliminate mortgage deductions’ bandwagon: Realtors. Much to their surprise, or should I say chagrin, Zandi told his audience that the housing sector has received enough support, “it’s time to give back.”

Read the rest of this entry »

Here’s a common scenario nowadays: You’re out of work and you know that you’re going to have trouble making your future mortgage payments on time. If you’re “lucky enough,” writes Gail MarksJarvis of the Chicago Tribune, to have your lender approve you for a loan modification, the last thing you need is for your credit score to drop as a result. Unfortunately that has happened to thousands of homeowners.

The good news is that a bill was introduced this week to protect borrowers’ credit scores from falling once their loan mod is approved: Read the rest of this entry »

Why did Experian, one of the “big three” credit bureaus, decide to cut consumers off from accessing their FICO score? While details remain quite thin, the credit bureau decided to do so late last week. The only reason why that I have found so far is what CBS5.com’s Sue Kwon called “a behind-the-scenes battle between Experian and myFico.com.” Consumers may still access their FICO scores through the other two bureaus Equifax and TransUnion.

Experts insist that consumers should continue to pull their credit reports from all three bureaus once a year: Read the rest of this entry »