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Super Contributor
concorduser
Posts: 6,025
Registered: ‎09-18-2007

What is the best way and maintain mortgage loan

I am getting ready to add a mortgage to my CR. What is that I should and should not do with this loan so I can keep my scores in tact.
 
When I add the mortgage to CR initially do I see a drop in the score? if so how many months would it take for the score to come back up again?
 
If I take 30 Year mortgage and if I pay double payment and reduce the debt sooner would it help my scores or does it hurt my scores?
 
Thanks....
Moderator Emeritus
Timothy
Posts: 9,252
Registered: ‎03-19-2007

Re: What is the best way and maintain mortgage loan

[ Edited ]
IMHO- It will not effect your score much (after the INQ's)
Your score will quickly recover after a few payments and TU will like you again (TU seems to like to see a mortgage)
 
Some people see an jump when a mortgage hits thier CR's.
 
Making extra payments can be a good idea -
I pay like an extra $200 a month towards mine-
FICO wise- does not make a difference
 
I fully fund retirement accounts first though -  

concorduser wrote:
I am getting ready to add a mortgage to my CR. What is that I should and should not do with this loan so I can keep my scores in tact.
 
When I add the mortgage to CR initially do I see a drop in the score? if so how many months would it take for the score to come back up again?
 
If I take 30 Year mortgage and if I pay double payment and reduce the debt sooner would it help my scores or does it hurt my scores?
 
Thanks....





Message Edited by Timothy on 01-06-2008 08:35 PM
Super Contributor
concorduser
Posts: 6,025
Registered: ‎09-18-2007

Re: What is the best way and maintain mortgage loan

Thanks Timothy. Yes, I take your advice as per the funding the retirement account. I have learned my lesson and I have made it a point to put 40% of my income into my savings. I have started looking for the house. Hopefully I would like to close on the loan by March/Apr. BOA said informally, I would be approved for loan. I might talk to CU also before I close the loan.
 
One more quick question, I dont have any installment accounts. I have paid off 2 of the installment accounts couple of months ago. I have been approved for a car loan with CU about a month ago. I have already taken the hit with inq. Should I add a small car loan say $5k or $6k for 48 or 60 months? It will not put any dent on or effect on my util or on my DTI.
 
Would help my fico or hurt my fico for adding this car loan.
Moderator Emeritus
Timothy
Posts: 9,252
Registered: ‎03-19-2007

Re: What is the best way and maintain mortgage loan

I say unless the loan is more than 6 months out- don't do the loan unless you need it. 
 
I guess the INQ's is most of the FICO hit-  Flip a coin?
 
40% is pretty impressive-
I am trying really hard to do 20%

concorduser wrote:
Thanks Timothy. Yes, I take your advice as per the funding the retirement account. I have learned my lesson and I have made it a point to put 40% of my income into my savings. I have started looking for the house. Hopefully I would like to close on the loan by March/Apr. BOA said informally, I would be approved for loan. I might talk to CU also before I close the loan.
 
One more quick question, I dont have any installment accounts. I have paid off 2 of the installment accounts couple of months ago. I have been approved for a car loan with CU about a month ago. I have already taken the hit with inq. Should I add a small car loan say $5k or $6k for 48 or 60 months? It will not put any dent on or effect on my util or on my DTI.
 
Would help my fico or hurt my fico for adding this car loan.



Moderator Emeritus
ByrdMan
Posts: 7,975
Registered: ‎12-19-2007

Re: What is the best way and maintain mortgage loan

Concord, I am about to close on a mortgage and I am on a software program that will allow me to pay off the mortgage in 9 years w/o taking extra $ out of my budget. I am stoked about that. GL on your pending mtg.
___________________________________________________________________
Do what is true in spite of the consequences--your future is only as true as you are.
Established Contributor
ObsessedwithmyFico
Posts: 513
Registered: ‎05-31-2007

Re: What is the best way and maintain mortgage loan



ByrdMan wrote:
Concord, I am about to close on a mortgage and I am on a software program that will allow me to pay off the mortgage in 9 years w/o taking extra $ out of my budget. I am stoked about that. GL on your pending mtg.

Byrdman, what is this software program?
Established Member
missrenae
Posts: 20
Registered: ‎08-10-2007

Re: What is the best way and maintain mortgage loan

I recently bought a home and did not see a drop in my score.
In harmony with other poster, I would like to also know about software program.
 
I had heard that if I make just one extra payment a year, I could save about $90K in
interest and about 7 years off the mortgage.  Not sure how accurate this info is though.
 
Anyone have any thoughts?
 
 
Super Contributor
MidnightVoice
Posts: 8,158
Registered: ‎03-25-2007

Re: What is the best way and maintain mortgage loan



missrenae wrote:
I recently bought a home and did not see a drop in my score.
In harmony with other poster, I would like to also know about software program.
 
I had heard that if I make just one extra payment a year, I could save about $90K in
interest and about 7 years off the mortgage.  Not sure how accurate this info is though.
 
Anyone have any thoughts?
 
 


go to:
 
 
 
Extra Monthly Payments

Who This Calculator is For: Borrowers who want an amortization schedule,
or want to know when their loan will pay off, and how much interest they will save, if they make extra voluntary payments in addition to their required monthly payment.

What This Calculator Does:This calculator provides amortization schedules for
mortgages, with or without additional payments. If additional payments are made,
interest savings and reduction in length of loan are calculated

The slide from grace is really more like gliding
And I've found the trick is not to stop the sliding
But to find a graceful way of staying slid
Moderator Emeritus
ByrdMan
Posts: 7,975
Registered: ‎12-19-2007

Re: What is the best way and maintain mortgage loan

[ Edited ]
Don't know if I can post a website for this, but here goes. The mods will delete if I can't. I apologize in advance if I am not supposed to post. It's called the Money Merge Account System www.rescuresmtg.com
Message Edited by ByrdMan on 01-09-2008 12:29 PM

Message Edited by ByrdMan on 01-0...

___________________________________________________________________
Do what is true in spite of the consequences--your future is only as true as you are.
Super Contributor
MidnightVoice
Posts: 8,158
Registered: ‎03-25-2007

Re: What is the best way and maintain mortgage loan



ByrdMan wrote:
Don't know if I can post a website for this, but here goes. The mods will delete if I can't. I apologize in advance if I am not supposed to post. It's called the Money Merge Account System www.rescuresmtg.com


Mine is free  :smileyvery-happy:
The slide from grace is really more like gliding
And I've found the trick is not to stop the sliding
But to find a graceful way of staying slid

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