How Does Your Credit Card Debt Affect Your Mortgage Rate? Credit card debt is a common discussion in today’s age and, when handled responsibly, can be a great way to boost your credit score when applying for a mortgage. Although a little credit card debt can do wonders, having too much can hurt your chances of obtaining a mortgage loan. Most Americans set a goal of buying a home, making it important to keep credit card debt under control. If you find yourself asking, “How does your credit card debt affect your mortgage rate?”, then stay tuned to hear our expert realtors of Choice Properties explain the potential outcomes. Having High Credit Card Balance If you have a high credit card balance, be prepared to show proof of available funds used to pay off the balance. If you lack the funds you could be subject to a higher interest rate on your loan. Having a strong credit history with monthly payments will help show your financial security, preventing a rise in interest rate. It is im
Can I Get A Mortgage for Lakefront Property in Ohio if I Have A Low Credit Score? As a home buyer, one of the things you may be worried about is your credit score. Maybe you have student loans you’re still paying off, or there’s a few missed payments in your history. Don’t lose hope however. If you have your eye on lakefront property in Ohio, you may still be approved for a mortgage, even if you credit score isn’t stellar. We have some insights for you to be able to determine whether you can get a mortgage. Paying Higher Interest Rates Interest rates have remained historically low, despite the volatility in the housing market. With a lower credit score, you can’t count on getting those low rates. The fact is, that mortgage interest rates vary with the buyer, depending on the risk. In other words, if your credit is damaged, you can still qualify for a loan, just at a higher interest rate. If you have your heart set on buying, then you have to decide whether a higher interest rate is so
Purchasing a home is a large investment of time, energy and resources. Consumers who decide to buy property should take time to consider all the options and challenges involved in the process. Learn some of the best questions to ask a potential mortgage lender and what to avoid when starting out the search.
A refinance could cut the monthly mortgage payment but whether it is the right move or not depends on some factors. Learn more about some things to consider prior to refinancing a home mortgage that could save time and money. Refinancing Costs Money A free finance does not exist as there are closing costs associated with any closing no matter what house a person buys. Anywhere from 2 to 5 percent of the loan amount will be added on and need to be paid upfront. Some options can also include: Cover the closing costs using a no-closing cost refinance which can come with a slightly higher interest rate Look at closing costs and how those will be covered prior to calculating how long it will take to make monthly payments to repay the closing costs If the closing costs will only be covered in four years and the plan is to stay two years in a home, refinancing may not make sense Savings Refinancing makes sense when the interest rate on a mortgage is more than 100 basis points abo