Two Quick Credit Tips For You…

Here are two quick credit tips for you…

1) 30% of your score is made up of the ratio between your available credit vs your actual balances on revolving credit accounts (like credit cards).

You don’t want to charge these accounts over 50% of the available balance, and its even better if you can keep it under 30% of the available balance.
2) 15% of your credit score comes from the length of time each account has been open, and the length of time since the account’s most recent action.

So, it’s impossible for someone who is new to credit to have a perfect credit score.

A longer credit history provides more information and offers a better picture of long-term financial behavior.

So, to improve your credit score, individuals without a history should begin using credit, and those with credit should maintain longstanding accounts.

That’s it for today!

Have a good day today! …and thanks for reading.

Brett

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Spouse With Bad Credit – Can We Use Their Income?

I get asked this question allot by borrowers…

“My spouse doesn’t have very good credit, but can I use her income on my loan application?”

Answer: “No.”

If we ad the spouses income, then we have to take his/her credit too. In fact, they would become an equal borrower on the loan.

If you are in this situation, and need more income on your loan to get approved – give me a call or shoot me and email. We can brainstorm on some solutions for you to add some income on your loan.

That’s it for today!

Have a good day today! …and thanks for reading.

Brett

Get Pre Approved For A Loan Here.

Get A Rate Quote Here.

Need A Mortgage Calculator?

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Anatomy Of A No Cost Refinance...

Yes, it is possible to refinance at no cost.

I wanted to take a minute and tell you exactly how a no cost refinance works.

There are two pools of funds you have to address when you refinance…

1) Closing costs.

2) Pre paids. (taxes, interest, and insurance)

A no cost refinance will cover your closing costs. You would still be responsible for the pre paids (although we can roll them into the loan) – because you would pay these costs whether you refinance or not. Now, if your current loan is escrowed you would be reimbursed the balance in your escrow account after closing. So, this would be a wash for you.

Let me give you an example of how a no cost refinance works…

Let’s say your current rate is at 4.75%. …and let’s say normal closing costs on your refinance loan would be $4,000.

There are two ways to approach this refinance…

1) You can take the very lowest rate in the market at the time. …Let’s say it’s 4.00%. If you elect to go this route – you would either have to pay the closing costs yourself, or we could roll them into the loan. Either way you are paying for the closing costs.

2) You could take a slightly lower rate – say 4.5%, and we (the lender) can pay the $4,000 closing costs for you.

Option 2 is a true no cost refinance. You were able to lower your rate and monthly payment for free. It didn’t cost you any money to do it!

If you would like for me to review your current situation for a no costs refinance – I’ll do it for free! …just give me a call, or shoot me an email.

That’s it for today!

Have a good day today! …and thanks for reading.

Brett

Get Pre Approved For A Loan Here.

Get A Rate Quote Here.

Need A Mortgage Calculator?

My Previous Blog Posts