5 Credit Myths Debunked

Aug 23
Category | Blog

Credit scores and mortgage rates go hand-in-hand. Borrowers with high credit scores tend to get lower interest rates on mortgages than borrowers with low credit scores. There is a wealth of misinformation about credit—in fact, credit users, even those who check their scores often, incorrectly believe age, employment history and salary factor into a credit score, according to a recently released TransUnion survey.

“Checking your credit score is an important component of financial responsibility, but consumers should do more,” said TransUnion Consumer Interactive President John Danaher in a statement on the survey. The TransUnion Consumer Survey shows that even those who monitor their credit are only skimming the surface of their credit report and often don’t understand the factors that comprise their credit score.”

The most common misconceptions both credit-checkers and non-credit-checkers should know, according to TransUnion, are:


Myth: Checking my credit report will lower my score.
Checking your credit report will not impact your score—a lender checking your report, however, may.

Myth: Using my debit card will boost my score.
Use of a debit card does not reflect your credit habits, and, thus, will not impact your credit score.

Myth: My salary factors into my score.
Your salary will not impact your credit score, but a ...

Refinance are up 55% compared to this time last year! As mortgage rates this August remain at historic lows. In fact, according to the Mortgage Bankers Association, the average interest rate on a 30-year fixed-rate mortgage was 3.49 percent near the end of July, down from 4.2 percent at the same time last year.
Not only can refinancing a mortgage save you money, it can also help you pay off your home quicker, and will even unlock more equity in your home. Rates available to consumers are low right now and probably aren’t going to go any lower in the foreseeable future. The Fed has indicated that they implement rate hikes after the elections in November. So by December 2016, rate could be much higher.
If you’re looking to take advantage of today’s low mortgage rates, keep the following items in mind so your process is as effective and smooth as possible.

  1. Waiting too long. While rates have been low for some time now, with some experts predicting they’ll go even lower, the upcoming election may lead to unpredictability. With low rates like the ones we’re seeing today, time is of the essence, so be sure to refinance sooner rather than later.
  2. Not being prepared. When your lender calls or emails asking for information, don’t put it off. Have your documentation and financial information ready so that you can sign it in a timely manner. The last thing you want to do is ...

More houses are turning into high-tech hubs of connectivity and convenience. Technology, in fact, has become one of the improvements most requested by homeowners according to home builders and remodelers.

Cameras are also a component in the connected home, in fact there is a growing trend among homeowners who are replacing costly security systems and monitoring services with self-controlled cameras.

LED lights are another sought-after, high-tech feature, due to their energy efficiency. Consult with a cool lighting system company that offers products with geo-fencing technology, as well as smartphone control capability.

No high-tech home is complete without a connection to the outside. During your tech renovation, consider installing a universal system that controls both indoor and outdoor features, such as a flat-screen television or surround-sound.

Home improvements can be expensive but if you are a current owner looking to enhance your home and its value there are options for you that won’t break the bank.

With mortgage rates at historic lows, it’s the perfect time to slice your monthly mortgage payment and consider a cash-out refinance. The best use of cash-out refinancing is for home improvements that increase the value of your home.

  • It allows you to pay off your existing mortgage—including closing costs—and have money left ...

Down Payments When Buying A HomeA down payment is an initial payment made by a homebuyer with financing, generally ranging from 5 to 20 percent of the home’s value. The FHA home buyer loan offers a down-payment option of as little as only 3.5% down.

A down payment of 20 percent will save the expense of private mortgage insurance (PMI), which is often imposed on borrowers who finance more than 80 percent of their purchase, and can also result in a lower mortgage interest rate. However, by working with an experienced licensed loan originator, you will learn about programs that do not require a 20 down-payment and still allow for affordable financing.

Whether you are trying to save 5% or 20%, here are great tips to help you start saving for your down-payment:

Saving – Open a separate savings account strictly for your down payment. Setting these funds aside from other types of savings will reduce the chance you’ll draw from it in times of need.

Budgeting – Your down payment will depend on the amount you plan to spend on a home. Assess your current financial obligations to determine how much you can save each month toward the down payment. Consider that many obligations can be reduced or even eliminated.

Tracking ...

Mortgages For Bigger FamiliesHaving a large family can be a source of joy and pride for both you and your several children. However, it will require more space to house everyone comfortably and to meet their needs. First, examine your budget and the type of home you will need. Then, speak to an experienced licensed loan originator who can help you evaluate your financing options and learn how much home you can truly afford. If you currently own your home and need to make a change, your loan officer can help you review your options more thoroughly to fit your unique goals.

Getting a preapproval letter from a lender will allow you to know exactly how much home you can purchase, and streamline your home search because you won’t waste time looking at homes you can’t afford. Homes outside of your price range will be off grounds.

Once you have a better understanding of your financing options, follow the tips below in order to choose the most comfortable home option.

Choose a Home with a Finished Basement or Attic Space
As your kids get older, they are going to want their privacy and space to have their friends over. You will likely want and need places to entertain or for your friends and family members to sleep when they come over for the night or for a longer period of time. Choosing a house with a sizeable finished basement space or attic can ...

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