I currently have an EQ FICO score of 667. Is this good enough to get a good mortgage rate? What score would I need to get a 'prime' rate? I currently have 80% utilization right now, would reducing that to under 50% get me where I need to be (if I am not there right now)? Thanks.
I went to countrywide and they wanted a middle score of 660 for an 80/20 loan. I did not have any down payment money but had the cash for closing costs. My 80 is at 6.75% and my 20 is at 7.75% or something close to that. The good news on this loan is it gets around paying any PMI. The bad news is the 20% is a line of credit which is revolving so it looks like a giant maxxed credit card. . I have to explain over and over to creditors that I did not take out a 21k line of credit- it is just part of the loan. Most seem to understand this though. Also, if you have children then go to upromise.com and sign up through countrywide through the site. You can also get cash back for their education.
picantel, how did the 80/20 affect your credit since the 20 looks like a maxed out credit card? This your score drop much? Thanks!
The score is okay. Most of the prime first time homebuyer programs start at 660, but there are decent programs available for scores less than that. Keep in mind that the EQ score doesn't tell us much, what the lender is going to go by is the middle score, so it's important to know what the other two are. A lot is going to depend on other factors. How much money you have for down payment and closing costs, debt to income ratios, etc. GC, the 20 only looks like a maxed out credit line if it's a HELOC. Most second mortgages look like second mortgages on a credit report. People choose these loans because they're based on the prime rate which is really low right now, but unless the FICO is in the 700's, the margin is likely to make them seem a lot less attractive.
You'll need to know what your "middle"score is.. not just your EQ FICO. Just about all mortgage lenders (at least those I've seen) pull all 3 reports. As far as what's needed to get the prime rate, it varies from lender to lender. Some start at 660, others start at 680 (Indymac bank where I eventually got my mortgage), and I tried countrywide, and they told me they need at least a 700 middle score.
I went from a 680 to a 60. then it went down to 570. keep in mind I have 26 positives and no negatives or lates aor anything even close to bad. Then a couple of weeks ago it went up to 630. 2 days ago it shot up to 690. Granted I did pay off some debt, closed a couple high annual fee cards, and paid off 3 small store charge cards so that certainly was a good thing. I heard that after 6 months a heloc starts to lesson its hold and it appears to be true. this month makes 6 months since we bought our house. Today I paid off my household(closing it), merrick bank(closed it), providian(closed it), conseco, and chase card. Now I just have an mbna to pay off. I am interested to see what it will do to my credit report but most of them updated this week so I have to wait the 30 days out. I figure I should have well over 700(knock on wood). Maybe I will give mycroft a call over at [DELETED] and see if he has any rates for refinancing. Someone did mentin a 4.8%. So mycroft what do you have and do you do ohio.
once again, do not forget upromise. If you have no kids then sign your grandchildren up. If you do not have any of those sign your nieces, nephews, ect up. ============================= Get 0.2% of your home loan amount as a college contribution from Countrywide - the nation's leading home lender. And, get a $50 contribution when you get a home equity line of credit. Qualifying for a Upromise contribution is easy, with these three steps: First, you must register some basic information with Upromise. Next, you must submit your information to Countrywide through Upromise so that your loan application may be tracked. ================================ Cendant Mortgage $300 CENTURY 21® Up to $3,000â? CENTURY 21® Mortgage $300 Citi® 1% COLDWELL BANKER® Up to $3,000â? COLDWELL BANKER® Mortgage $300 Countrywide Home Loans 0.2% Then, within 120 days of submitting your information, you must apply for your loan either online at Countrywide.com or by calling Countrywide's dedicated 800 number for Upromise members.* Applications submitted directly to a local Countrywide branch are not eligible for Upromise contributions. See details and additional restrictions.
It doesn't seem like my HELOC ever had an effect on my EQ FICO, it didn't affect my TU either. Only experian with its FAKO score calculated my HELOC together with other revolving credit (yeah, it took a dive.. but who cares?).
Mycroft and others, Where is the best place to get an accurate FICO score? I understand that the ones consumers pull are different from the ones that merchants pull especially mortgage. So, how do I know what my mortgage FICO is without applying for a mortgage? Is HELOC a good thing? If I do 80/20, what are the main points or gotchas I need to watch out for? Should I go for a HELOC (what is it anyway)? How can I help out my score if I did 80/20?
we used the 80/20 because we did not have down payment cash. It was a way to get around it and the loan allows you to get around paying around $60 a month in pmi. heloc= home equity line of credit.
I pulled my TU Fico and it was 683. I did not see an Experian Fico score online. So, in that case, my EQ score, at worst, would be used (667). It is going to be a construction loan and I already have the land, so I have at least 50% equity. Is that score combined with the land enough to get the best rate?
Re: Re: mortgage rate with this score? That's a great question. When I order a credit report, I don't order it directly from the credit bureaus. I order it from a credit reseller who gets the information from all three credit bureaus, merges it into one report and scores it. What the reseller gets from the credit bureaus is raw data, what they sell to us is formatted and edited. In addition, when the lender sets up an account with a reseller, the lender may specify that they are not interested in some information. It's not so much that consumers get different information than lenders, it's that there can be a difference in score depending on which reseller provides the report, and the criteria of the lender requesting it. So having said that, i'll say that any place to get a credit report is as good as any other, so long as it is FICO scored, and not some alternate system. HELOC. Good or bad is a judgment call. The thing to understand is they are adjustable rate second mortgages. If you prefer the security of a fixed rate, they're probably not for you. Many people like them right now because they are based on the prime rate which is very low right now, but these loans are also very credit sensitive.
Re: Re: mortgage rate with this score? Construction loans are a completely different animal, and I don't do them much. Still, I do have a few things to say about them: 1) The rates are higher. A construction loan is a greater risk to the lender (because sometimes the house is never completed) while a construction loan is likely to have a permanent feature, most people will refinance them anyway once the home is built. That's a long way of saying it's a temporary loan, so don't worry about the rate so much. 2) Owning the land doesn't give you 50% equity. In a construction loan, you don't have any equity until the home is built, and then it's figured on the value of the home, and the land just plays a minor part of it.
Re: Re: Re: mortgage rate with this score? I guess you haven't been to Long Island recently. My land is valued about 300,000 while the little cape that sits on it can be newly built for 200,000. I am not talking a large amount of land; my lot size is 6,250 square feet, almost exactly 1/7 acre. But for a construction loan the bank does not take in to account any land equity. This is one main reason to refinance when construction is completed, your equity/value then do include the land and CAN have a HUGE impact, depending on where you live.
Re: Re: Re: mortgage rate with this score? Still waiting to hear from you mycroft unless I just missed your answer. What scores are needed for an under 5% refinance. Do you need anything specific to happen. closing costs? Do you work with out of state. do tell.
Re: Re: Re: mortgage rate with this score? Score reqmts vary all over the landscape, depending on what your other factors are....as does the cost of the loan. What exactly do you mean by the phrase 'under 5% refinance'? Drop me a line at MentorForWinners@aol.com? Thanks/Mark
Re: Re: Re: mortgage rate with this Acquiring and publicly disclosing another member's place of business without their permission constitutes harassment and violates privacy rights. CCN steve
