Right now , I'm sitting here in wonder. My brother is going to refinance his 15 yr mortgage that has 4 years left on and will get a new 15 yr. loan for 175k.(65% LTV) Notice I said Will and not ,will try to refinance ? They pulled his fico scores. 860 fico Now I know it's possible. VJ Still sitting in wonder and very happy for him.
Can I ask a question? Why would he add another 15 year loan if he only has 4 years left to finish paying off his home? Is he doing it for the tax break? I would be glad to be rid of the house payment in 4 years. Just wondering?
He wants to have the money available to buy another rental if he finds a good deal. He'll negotiate a fair price and then write a check to go with the offer.For the seller , they don't have to wonder if the financing will go through on the sale, or apprasals or anything else. The really funny part is if they counter, his new offer is a new check and offer, usually 1k less than his first offer with the stipulation its his last offer,don't bother countering. His stated reason to them is their Real estate broker may be an idiot and they should sue him for recommending they not take the first offer or should have the agent agree to lower his commission by 1k. He will finance the house in 6 months depending on rates. VJ
Today's mortgage rates are way less than historical long-term average returns from the stock market, never mind what you can make renting an appreciating property full-time. If you have Money with a capital M (I'll define it as six figures or more that you don't need to live on) and you know how to use it then it's a good move to free up investment capital this way. Of course Credit with a capital C never hurt anyone either, and the primary residence mortgage interest tax break is a nice bonus. Or, think of it this way: if you suddenly found yourself out of work with an unknown future, would you rather own your own house, have $1000/mo. in living expenses and $10,000 in the bank, or own 75% of your house, have $2000/mo. in living expenses but $50,000 in the bank? Non-liquid assets may have the best returns but they won't get you a loaf of bread when you're hungry. Personally I just study all this in theory and enjoy my zero net worth. It was a lot lower until recently. Hey, how old is your (darn it, now I can't remember to whom I'm talking and I can't check) brother's file? I figure he must have 20 or more years of history to be such a confirmed non-risk, and I wonder how many decades away I am.
Profile that I know for sure. 47 years old first loan in files 29 years ago. 1 visa 50k limit opened a home depo card 7 months ago sears card 20+ years Never late , no derogs. blue collar worker I'll have more to share this weekend. VJ
I thought the highest was 850. The highest I've ever seen on paper was 813 and that person was rather old - so were her 2 credit accounts. Cardkid
From the Equifax Website at https://www.econsumer.equifax.com/w...ageFrameServlet?payloadName=pgFAQScore.jsp#14 What is the highest and lowest BEACON ® FICO ® score? BEACON scores range from 300 to 850.. The higher the score the lower the predicted credit risk for lenders. CardKid
<http://www.best-rate.com/creditscore.htm> I thought I linked here earlier from this thread! Now I do not seem to see it,anyway this site shows scores ranging from: "Fico score thresholds: range from 300 to 900 points"
