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gmakerley
Community Mentor
Joined: 09 Nov 2007
Posts: 12330
Location: bloomfield, ct
50.03 Dollars($)
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please recognize, everyone, that the above poster's recommendation pertains only to properties in the state of texas. i'm sure there may be other helpful information on the site, as well, but it's directed at texas.
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George M. Akerley
Independent Contractor - Mortgage Consultant
Word of Excellence Editing/Writing/Proofreading
860-221-5044
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wil
Guest
0.10 Dollars($)
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| It is wise to take a personal loan for $5000 to pay off credit card debt, six months prior to applying for a mortgage loan ? |
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savior70
Joined: 25 Mar 2009
Posts: 1895
Location: Florida
261.84 Dollars($)
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Hi
You can take a personal loan to pay off your credit card debts. Since the amount of the loan is just $5000, it's not going to affect your debt ratio to a great extent. So, it'll not be a problem for you to apply for a mortgage six months later. What is the actual amount of your credit card debt? Is it worth just $5000? If it's so, you can negotiate with your credit card company to settle the debt or can work out a repayment plan and pay off the debt over the next few months. |
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gmakerley
Community Mentor
Joined: 09 Nov 2007
Posts: 12330
Location: bloomfield, ct
50.03 Dollars($)
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i think i would have to agree with savior here. paying off your credit card debt is always a good idea, and if this is your preferred method, it would work. giving yourself 6 months would also not cause damage to your credit scores. i suggest you not necessarily close out your credit card accuonts - at least not all of them - but that you keep the lines open and simply avoid usage.
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George M. Akerley
Independent Contractor - Mortgage Consultant
Word of Excellence Editing/Writing/Proofreading
860-221-5044
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warghader
Joined: 19 Jun 2009
Posts: 16
5.87 Dollars($)
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| will this work if one just keep the lines open for credit and do not use it at all,whether it will improve the score and if by how much points??? |
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jenkin7
Joined: 04 Jun 2007
Posts: 4537
Location: Hawaii
728.43 Dollars($)
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Hi warghader,
Just keeping the credit lines open will not be useful. You need to use them. What you can do is you can use your credit lines to make payments for the utility and other bills and then, pay off the debts. This will keep the lines open and active and help you improve your credit. |
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sunnyca2009
Joined: 04 Aug 2009
Posts: 1731
35.55 Dollars($)
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closing yoru accoutn will have negative impact on yoru debt to incoem ratio
It will show that you have less availabe credit and more utialization |
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gmakerley
Community Mentor
Joined: 09 Nov 2007
Posts: 12330
Location: bloomfield, ct
50.03 Dollars($)
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retaining the account with an open credit limit and zero balance will be highly favorable for credit scoring.
_________________
George M. Akerley
Independent Contractor - Mortgage Consultant
Word of Excellence Editing/Writing/Proofreading
860-221-5044
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karen128
Guest
0.10 Dollars($)
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Post subject: home loan |
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im applying for a home loan and there was a recent collection that appeared on my report...it shows paid in full how will this affect me
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Need help choosing the right loan? Get free consultation from community lenders/consultant |
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gmakerley
Community Mentor
Joined: 09 Nov 2007
Posts: 12330
Location: bloomfield, ct
50.03 Dollars($)
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karen it already affected you with your credit score. at this point, however, that it is paid is favorable for you. nost everyone wants such accounts paid off prior to closing on a mortgage these days anyway, so you've saved yourself that one step in qualifying. your credit score has already taken that collection into account, so you ought to see increases in your scores as time goes by.
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George M. Akerley
Independent Contractor - Mortgage Consultant
Word of Excellence Editing/Writing/Proofreading
860-221-5044
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autumn_limco
Joined: 05 Jan 2010
Posts: 11
2.36 Dollars($)
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| i was confused, so with karen's situation the report increased her credit score? the full paid is not an error? |
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gmakerley
Community Mentor
Joined: 09 Nov 2007
Posts: 12330
Location: bloomfield, ct
50.03 Dollars($)
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that's not what i said...i noted that the collection had already had an impact on her score, and that now she's paid it off, she will begin to see an improvement in the score because it's paid.
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George M. Akerley
Independent Contractor - Mortgage Consultant
Word of Excellence Editing/Writing/Proofreading
860-221-5044
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Cindy
Guest
0.10 Dollars($)
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Post subject: Help me make a very difficult decision/ very confused |
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| Hi, To make a very long story short, I have a mortgage that is 9.9%. The home was 199,900 and the payoff is 156,000. I have lived here for three years now and my concern is, only 90.00 is going towards toward the principal out of the mortgage payment of 1,391.44. I have sat down today with a friend of mine and she figured up that i have paid my mortgage broker 50,000 in the 3 years of living here. I am sick to death after learning this today. I also have my home for sale for 215,000. I got an offer for 190,000. The payoff is 157,000 Should i go ahead and take the offer or stay put until my credit gets better to refinance with a regular bank or get out now? The loan i have now is more less an under the table loan, meaning small bank/broker/robber. Please try to help me make the right decision. I have 47,000 in this house. That is what i put down at closing. Thank you so much. Cindy. |
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gmakerley
Community Mentor
Joined: 09 Nov 2007
Posts: 12330
Location: bloomfield, ct
50.03 Dollars($)
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you most likely wouldn't be happy to learn about how much you'd paid out if the rate was 6%, either, cindy, but that's a different point altogether.
to try to advise you on whether to accept the offer you received or to stand still "until my credit gets better" is almost impossible. your credit situation depends greatly on where you are at this moment, and just what is needed to get you to where you might need to be so a refinance would work.
do you know your current credit score? that's the first place to start, but the analysis might take long enough that your potential buyer's offer might be off the table before you can make what you think is the right decision.
if you're close to 620, then you stand a reasonably decent chance of obtaining a loan to refinance soon...if not, you've got to see what you need to do to get to that level or higher. even at that level, you'll save substantially; rates are far better than 9+%.
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George M. Akerley
Independent Contractor - Mortgage Consultant
Word of Excellence Editing/Writing/Proofreading
860-221-5044
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Heather123
Guest
0.10 Dollars($)
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Post subject: Medical Collections |
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Jessica,
Together, my husband and I have about $10,000 in medical collections. We are about to get in paid down to half that amount by the end of 2010. Both our credit scores are around 575. We were hoping to qualify for an FHA loan purchasing a modular home by the summer of 2011.
Can you tell me how Medical Collections will effect our interest rate and chances of getting a loan? Also, if we cut our debt in half, do you how it could effect our scores? |
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