The rules change when good economies go bad. Old standbys, like always pay more than the minimum on your credit cards, retire your mortgage as soon as possible, and a home equity line of credit (HELOC) is the best second mortgage because of its flexibility. Today, those rules are good for lining the bird cage but not much else. Continue reading ‘Rules Were Meant to Be Broken: Minimum Credit Card Payments’
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In tough economic times, the rules go out the window. Rules like, always pay more than the minimum on your credit cards, it’s smart to pay your mortgage off as early as possible, and a home equity line of credit (HELOC) is the best second mortgage because you only pay interest on the money you use. These rules are a bit cute and quaint today. Continue reading ‘Some Rules Were Meant to Be Broken: Prepaying Your Mortgage’
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It looks like FHA is planning to beef up its falling reserves by requiring borrowers to come up with a bigger down payment. Can you see your home ownership dream fading away? Well, don’t let it! Yes, FHA is likely to require 5% down instead of 3.5% in the near future. HUD Secretary Shaun Donovon says that’s a virtual certainty. But what about deserving sorts who really need some help? What if you know you could pay your mortgage but could never save a down payment while paying rent and other obligations? Is there hope for you? Continue reading ‘FHA Mortgages: Is My Down Payment Going to Increase?’
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Okay, I know, it’s cruel to run an entry like this during the holidays. Telling people to get rid of debt just when there is all that pressure to spend like crazy. But I’m trying to save you a hangover–a spending hangover. You can thank me in January. So, starting now, we’re going to get your spending utilization down and improve your bad credit. Continue reading ‘Improving Your Credit: The Utilization Factor’
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It’s one of the many catch-22s in our society–it takes money to make money, you need job experience to get a job, and yes–you need credit to get credit. So, how fair is it to deny people mortgages because they are too smart to get themselves in debt?!
Well, it isn’t. The reason mortgage lenders like to see a credit history, with what they call “trade lines” from a variety of creditors, is that they assume that the way you have behaved with these other creditors predicts the way that you will handle a mortgage. Without a credit history, they don’t have that information. However, that doesn’t mean that you can’t get a mortgage; it means that you and your lender will need to work a little harder. Continue reading ‘Getting a Mortgage When You Have No Credit’
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It’s fairly common knowledge that bankruptcy can drop your credit score by hundreds of points and render you ineligible for a new mortgage for several years. You may have resigned yourself to renting for the foreseeable future. But you might not have to. Continue reading ‘Bankruptcy and Your Next Home Loan: Some Lenders May Cut You Some Slack’
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Debt consolidation can get you some breathing room and help you improve your credit rating. Like most things, debt consolidation is only worth doing if you plan to do it right. And debt consolidation right before the holiday season has its own special pitfalls. Here’s a checklist for getting that debt-monkey off your back for good! Continue reading ‘Debt Consolidation Done Right’
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Reverse mortgages can get seniors out of mortgage credit jams. If you are 62 or better and have substantial equity in your home, you could pay it off with a Home Equity Conversion Mortgage (HECM). You could kiss your mortgage payments (and your foreclosure worries) goodbye with this FHA home loan. Continue reading ‘Reverse Mortgages Can Avert Foreclosure’
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