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Old     (meathead65)      Join Date: Sep 2006       08-27-2015, 2:02 PM Reply   
Pretty knowledgable bunch here, so I thought I'd ask:

I'm trying to fine tune my credit score and get it as high as possible for an upcoming home purchase. I know that I need to keep my revolving debt on credit cards and store accounts at or below 30 percent. Right now if I take my credit line on all cards and my total balance I'm at 13 percent utilization. However, we have a cash back card we use for most of the shops daily business and parts purchases. It has a 15K limit and the balance runs around 5-7 K typically. We pay it down or off usually by October since revenue drops then and we want all the bills paid going into winter slow season. So even though my total utilization is under 15 percent, is this one account running at 40-50 percent impacting my score?
Old     (dezul)      Join Date: Jul 2012       08-27-2015, 3:07 PM Reply   
Go to reddit.com and check out the subreddit personal finance. They will help you out more than these goons. Eliminating all credit card debt will play the biggest factor.
Old     (hatepain)      Join Date: Aug 2006       08-27-2015, 9:09 PM Reply   
If you have a good score and you're D to I is solid you'll get the best rate out there. Home loans don't fluctuate much like you'd see with say an auto loan.
Old     (psudy)      Join Date: Dec 2003       08-28-2015, 7:17 AM Reply   
I can't speak for other institutions but our rates are not risk based. If you qualify the rates are the same. If you are using a broker, and not a bank that may be different. They have changed regulation to keep everything within a tolerance of the national average otherwise it can't be a "qualified mortgage."
Old     (meathead65)      Join Date: Sep 2006       08-30-2015, 12:08 PM Reply   
Interesting.... My broker told me I needed a 760 for best rate, trying to get there from my current 744.
Old     (hatepain)      Join Date: Aug 2006       08-30-2015, 9:21 PM Reply   
It's possible that it could save you a 1/4 point (.25%) or about 40-50 bucks on a $300,000 note. Just keep a 10% or less balance in your CC's in the couple months leading up to when you lock in your rate.
Old     (psudy)      Join Date: Dec 2003       08-31-2015, 8:15 AM Reply   
Shop the loan around. Check with some banks.
Old     (King12)      Join Date: Jul 2012       08-31-2015, 11:21 AM Reply   
Quote:
Originally Posted by hatepain View Post
It's possible that it could save you a 1/4 point (.25%) or about 40-50 bucks on a $300,000 note. Just keep a 10% or less balance in your CC's in the couple months leading up to when you lock in your rate.

How is it only 40-50 bucks? On 300k for 15 years dropping from 3.5 to 3.25% saves you 7k dollars.. I think I'm misinterpreting what you said
Old     (chillinoj)      Join Date: May 2009       08-31-2015, 12:40 PM Reply   
I use one card constantly too for the rewards, either check the credit reports to see what day of the month they report your balance on or just send in 2 - 4 payments per month and that will keep the ratio low and help you out.
Old     (lashburn1)      Join Date: Oct 2014       09-01-2015, 5:47 AM Reply   
Quote:
Originally Posted by King12 View Post
How is it only 40-50 bucks? On 300k for 15 years dropping from 3.5 to 3.25% saves you 7k dollars.. I think I'm misinterpreting what you said
Per month
Old     (King12)      Join Date: Jul 2012       09-01-2015, 5:49 AM Reply   
Ah duh haha I just kept looking at it and for some reason could never get it. Doesn't sound like much putting it like that. Crazy that just another 50 bucks turns into 15k over 30
Old     (hatepain)      Join Date: Aug 2006       09-01-2015, 8:49 AM Reply   
Yep its about 15k over 30 but most people just look at what they can afford on a monthly basis, that and people tend to move well before they pay off a home loan.
Old     (tracktor)      Join Date: Sep 2005       09-01-2015, 11:13 AM Reply   
Quote:
Originally Posted by psudy View Post
I can't speak for other institutions but our rates are not risk based. If you qualify the rates are the same. If you are using a broker, and not a bank that may be different. They have changed regulation to keep everything within a tolerance of the national average otherwise it can't be a "qualified mortgage."

Wait wut? LLPAs(loan level pricing adjustments) which are commonly referred to as risk based pricing adjusters are a function of the agencies (Fannie/Freddie) not individual lenders. If you are originating a Fannie/Freddie conforming loan you had them, period. It doesn't matter if you are a bank, broker or correspondent.

740 is the highest level for a conforming mortgage loan. Anything higher gets priced the same. However, Jumbo or Portfolio loans use there own pricing matrix's which often times reward higher scores.
Government (FHA/VA) for the most part everyone gets the same rate. Small hit if under 620 score..............
Old     (psudy)      Join Date: Dec 2003       09-01-2015, 11:58 AM Reply   
Our rates are the same for anyone that qualifies for conforming loans. Period. We do not increase rates for lower credit scores. They are either streamline accept, or denied. We sell to the Federal Home Loan Bank and one of the main advantages of that is we don't have to mess with all the different pricing factors. That is why I said I CAN'T SPEAK FOR OTHER INSTITUTIONS.....
Old     (tracktor)      Join Date: Sep 2005       09-01-2015, 1:29 PM Reply   
Paul, very cool. I learned something new today. How do the rates/guidelines compare to agency?............................

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