How can you improve your credit score
April 29, 2009
It’s virtually impossible to change your score in the time between when most people decide to buy a home or refinance their mortgage and when they apply. So the short answer is, you really can’t “on the spot.” But there are strategies you can live with to make sure when you apply for a loan your score is as high as possible.
Make sure that the information each of the three credit reporting bureaus has on you is consistent and up to date. Order a copy of your credit report about once a year, and dispute any inaccuracies.
Note: Theoretically, if a series of credit reports is requested on your behalf during a limited amount of time, your score goes down until time passes without any inquiries. Changes in the law though have made “consumer-originating” credit report requests not count so much. Also, a series of requests in relation to getting a mortgage or car loan is not treated the same as a number of credit card requests in a limited time. This is because the credit bureaus, and lenders, realize that people request their own credit reports to keep up with what’s on them, and smart consumers shop around for the best mortgage and car loans.
Unsolicited credit card solicitations in the mail don’t count against your credit report, so don’t worry.
The two main components of your credit score are your payment history and the amounts you owe. Bankruptcy filings and foreclosures, which can stay on your credit report for as many as 10 years, can significantly lower your score. It’s never a good idea to take on more credit than you can handle.
Late payments work against you. It’s extremely important to pay bills on time, even if it’s only the monthly payment.
Dont “max out” your credit lines. Since the size of the balance on your open accounts is a factor, lower balances are better.
It’s said that by carefully managing your credit, it’s possible to add as much as 50 points per year to your score.
Mortgage Payments are Different than Rent Payment
April 29, 2009
A mortgage payment includes principal and interest, taxes, insurance, and possibly homeowner’s dues. Rent payments in contrast are not applied to anything and are not tax deductable in most instances. It is important to remember that the interest portion of a mortgage payment is tax deductible!
The Lowest Home Mortgage Rates Period!
Whether you are looking to refinance or purchase, have excellent or poor credit, Pro Mortgage is your financing source. We have hundreds of lenders and thousands of loan programs that are available to be tailored to each individuals needs.
Conforming mortgage rates are dropping! With rates on their way down, now is an excellent time to see if a refinance or purchase makes sense for you.
Home Mortgage Deduction Under Attack By Presidential Panel
April 3, 2009
Social Security may be the third rail of American politics, but the mortgage interest deduction is the equivalent of an electrified apple pie.
Under periodic and unsuccessful attack since the Reagan years, this rule allows homeowners to deduct interest on home mortgages (including, with certain restrictions, second mortgages and home equity loans) up to $1 million, and also the property taxes on those homes. Deductions are also available for second homes that are, however infrequently, owner occupied. That deduction can also be taken for boats and possibly other “residential” vehicles that function as primary or second homes.