Average Credit Score for Mortgage Drops
There is finally proof that mortgage guidelines are loosening. The average credit score for new borrowers being approved for a mortgage has decreased to 724. This is a 21 point decrease from one year ago according to Ellie Mae.Monday Mortgage Recap
Last week mortgage rates continued their slight increase. The GDP number was revised downward to 2.4% which indicated the economy is still growing slowly which is as expected. There wasn’t much economic news released last week. This week should see more updates as it is the beginning of a new month. See current information at the Wall Street Journal Market Data...Monday Mortgage Recap
Last week mortgage rates moved up slightly again. The Fed released their meeting minutes which revealed that the economy is still growing slowly which is as expected. Existing Home Sales and Housing Start data revealed that the housing sector is slowing down but prices are still on the rise. Look for rates to remain fairly stagnant with slight moves each way depending on the reported data. See current information at the Wall Street Journal Market Data...Private Mortgage Insurance (PMI)
Private Mortgage Insurance (PMI) is insurance for the lender that is required on Fannie Mae or Freddie Mac loans when the borrower has a down payment less than 20% of the purchase price. It is also required on all FHA loans even if the borrower does have 20% for a down payment. Many people have the impression that PMI protects the borrower but that is not true. PMI is charged either monthly or in advance as security for the lender and is one of the best reasons to have a 20% down payment....Easy Ways to Build Your Credit
Below is a list of easy things an individual can do to build credit or increase their credit score. Get 2 credit cards Increase your limit on existing credit cards Keep your credit cards open Pay down cards with high balances Use your card and pay it off monthly Secure an installment loan (mortgage, auto, personal, etc.) Pay off old charge-offs Dispute wrong reporting (Do this before applying for a loan) For a more detailed explanation on how to build your credit, visit this link to MSN Money....Connect With Us
