Napa Mortgage News

Your Credit Score....Weekly Market News!

February 29th, 2016 6:42 AM by Dale DiGennaro

YOUR CREDIT SCORE...THE DIFFERENCE IS IN THE NUMBERS!
What is it costing you? How can you improve it?

Dear Gena,

Most of us understand that our FICO score determines whether we are able to get a loan or not! However, what most people are not exactly aware of is the difference a number can make in the cost of that loan!

Here is an example of what I am talking about...

$595,000 cash out refi

4.375% rate

Take a look at the difference the fico score makes!

679 is a cost of $12,929
680 is a cost of $6,694
700 is a cost of $4,462
720 is a cost of $1,487
740 is a credit of $3,937 towards closing costs (so would be zero 3^rd party closing costs).

So, if you would like some help raising your scores....but not exactly sure where to start or what to do.....give us a call and we will do a quick mortgage review to see if we can save you some money!

VISIT OUR WEBSITE

Last Thursday, I was at CALIFORNIA ASSOCIATION OF MORTGAGE PROFE
SSIONALS (C.A.M.P.) meeting on the topic of credit reports! We had a credit professional in from Texas speaking on the topic and how he and his team spend their time handling issues and repairing and correcting consumer reports. He had alot of great information to share to be sure we can help get you the best rate possible! Here are a couple of suggestions...

A. Always try to keep the amount you owe on each of your credit cards below 50% of that cards available credit.
Other than your on-time payment history, this is the single biggest factor to increasing your credit score that you have control over.
Asking for credit is good. The more credit you have and the higher your limits are the better your credit score will be.
Carrying a reasonable monthly balance on your cards is good. You actually get rewarded in your credit score calculations when you owe money on houses, cars and credit cards. But always try to keep your credit card balances below 50% of the available limit. A balance of about 35% of your cards max seems to be perfect for achieving the highest FICO score possible.
B. Business credit should be used instead of personal credit whenever possible.
It is a little known secret that when you set up a business properly (by filing a corporation name and doing what is called entity structuring) the debt which is given to YOU in the name of your business will not show up on your personal FICO credit report.
This technique, of getting money in a business name, means that no negative effect will happen to you or your credit score, no matter how many loans or cards you get for business use.
This kind of money is INVISIBLE, when done properly, and will never lower your credit score, like normal personal debt would.
So the lesson to learn here is that you should not use personal money to run your business, because that will lower your FICO score. You should use a registered business name to get money for your business needs that is separated from you personally.
This way you can take out a million dollar's worth of business loans and no one will ever know when they look at your FICO credit.

C. Credit repair should be done.
Using credit repair techniques and programs that are available are one of the fastest and easiest ways to raise your FICO score and to quickly have GOOD credit.
The easiest money you will ever make or save is the money you have been wasting by having a credit score that is lower than it could be with a little effort.
This kind of tiny investment in credit repair, on average, saves people $9,436 a year by lowering all their interest rates and eliminating excessive fees.

Credit Repair Works!
Credit repair and credit restoration works really well and has become a billion dollar industry because of the positive impact it can have in legally removing negative items from your credit report and increasing your FICO scores.

Feel free to contact us any time for assistance or go to www.CustomLending.net for more information.

Data Exceeds Expectations

The major U.S. economic data released over the past week was stronger than expected. Upside surprises were seen in GDP, durable orders, housing, and inflation. The impact on mortgage rates was small, however, and rates ended the week just a little higher.

The Core PCE price index is the monthly inflation indicator preferred by the Fed, and the readings for January showed that inflation is rising more quickly than expected. Last week's CPI inflation report contained a similar message.

Core PCE, which excludes the volatile food and energy components, was 1.7% higher than a year ago, up from 1.3% just two months ago, and the highest level since February 2013. Low levels of inflation have helped keep mortgage rates low. If the trend toward higher inflation continues, it would be negative for mortgage rates.

The housing data released over the past week was mixed, but the much more significant report was encouraging. January existing home sales, which make up about 90% of all home sales, increased to near the best level in seven years. They were 11% higher than a year ago. New home sales, which make up the rest of the market, declined in January. Low mortgage rates and solid job gains are having a nice effect on home sales.

Fourth quarter GDP was revised higher from 0.7% to 1.0%, above the consensus for a decline to 0.4%. GDP, the broadest measure of economic activity, recently has been volatile from quarter to quarter. The consensus is that 2016 will start on a better note. First quarter GDP growth is expected to rise to 2.0%, well above the levels seen during the first quarters of 2014 and 2015.

Looking ahead, the important monthly Employment report will be releasedon Friday. As usual, this data on the number of jobs, the Unemployment Rate, and wage inflation will be the most highly anticipated economic data of the month. Before that, Pending Home Sales will be released on Monday. The ISM national manufacturing index will come out on Tuesday, and the ISM national services index will come out on Thursday.

Thank you for always trusting in us to do the best for you and your family and please feel free to call me anytime with your questions. I will be happy to share with you whatever information you may need!