According to Experian, a credit score is a number lenders use to help them decide: “If I give this person a loan or credit card, how likely is it I will get paid back on time?” The information from your credit reports is used to create your credit score. Your credit score will always be a key ingredient for low interest rates when qualifying for a mortgage or home equity loan.
Home Improvement Advice: Home Equity Credit Lines Versus Fixed Rate Second Mortgages
Are you thinking about mining the equity for a home improvement loan, but are wondering if you have missed the boat not doing a refinance and cashing out? There are still many home equity loans available that may suit your needs without breaking the bank with payments. Keep in mind with all second mortgages you are borrowing against your house, which means if the payments become too much for you to handle, you will lose your home.
Debt Consolidation Mortgage Loans: Easy Way to Save Money:
Swimming in heavy credit card debt sometimes means getting deeper in debt simply because of high interest rates. The IRS no longer allows credit card interest as a deduction. If you use a home equity loan to consolidate and pay-off your bills, you could actually save you more money than you think.
Debt Consolidation Refinance Advice: Chapter 13 Bankruptcy versus Ch. 7 BK
Under the old bankruptcy laws, most debtors chose between a liquidation proceeding under Chapter 7 of the Bankruptcy Code and a wage-earner repayment plan under Chapter 13. Under the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA), new bankruptcy law, a two-part means (income) test now determines if your are eligible for Chapter 7 or must file under Chapter 13 for relief. Filing for bankruptcy should always be a last resort, since it damages your credit for many years.
When Your Credit Score Isn’t Really Your Credit Score
Potential home buyers are often told to “check your credit score” before applying for a mortgage. That’s a great idea, but many buyers don’t realize that not all scores are the same. What they should be checking is their FICO credit score.
Time to Consider Your Home Equity Line of Credit?
Interest rates are rising, and that will increase the payments on your home equity line of credit. Is it time to consider exchanging that useful financial tool for something else?