@Anonymous wrote:Have been searching on MF and elsewhere but can't seem to find a good answer. Basically I'm wondering what is the time frame that one should garden before getting a mortgage (like is it 6 month? 12? or more?)?
Specifically I'm contemplating getting a few new CCs in the near future but don't want to risk an increased mortgage rate. Currently all my 3 FICO 08 scores are over 800 with overall utilization under 10% and 1 or 2 INQs on EQ/EX in past year, but opening the new accounts will likely drop AAOA from 35months or so down to 24 and increase INQs.btw. Also wondering what kind of consequences would one be looking at that period of gardening doesn't happen (i.e. would it be something like a 0.25% rate increase)?
Thanks!
Ideally FICO wise? 12+ months.
Inquiries are a ding, full year. Dropping below 2 years AAOA is a ding almost certainly on all profiles I've seen. That all said it depends what your current mortgages scores are which can vary by a lot compared to FICO 8, but if you're still over 760 or even 740 on some products /shrug.
As for consequences, it's just whether you shift over a tier boundary or not... if you shift a tier, than yeah, .25% or worse, if you don't, is a non-issue.
End of the day in my opinion, credit cards aren't really worth that much (certain exceptions do apply) but a mortgage is one of the biggest if not the singularly largest purchase of our entire financial lives, and credit cards don't rate at all in comparison. How far out are we talking potential mortgage?
@Revelate wrote:
@Anonymous wrote:Have been searching on MF and elsewhere but can't seem to find a good answer. Basically I'm wondering what is the time frame that one should garden before getting a mortgage (like is it 6 month? 12? or more?)?
Specifically I'm contemplating getting a few new CCs in the near future but don't want to risk an increased mortgage rate. Currently all my 3 FICO 08 scores are over 800 with overall utilization under 10% and 1 or 2 INQs on EQ/EX in past year, but opening the new accounts will likely drop AAOA from 35months or so down to 24 and increase INQs.btw. Also wondering what kind of consequences would one be looking at that period of gardening doesn't happen (i.e. would it be something like a 0.25% rate increase)?
Thanks!
Ideally FICO wise? 12+ months.
Inquiries are a ding, full year. Dropping below 2 years AAOA is a ding almost certainly on all profiles I've seen. That all said it depends what your current mortgages scores are which can vary by a lot compared to FICO 8, but if you're still over 760 or even 740 on some products /shrug.
As for consequences, it's just whether you shift over a tier boundary or not... if you shift a tier, than yeah, .25% or worse, if you don't, is a non-issue.
End of the day in my opinion, credit cards aren't really worth that much (certain exceptions do apply) but a mortgage is one of the biggest if not the singularly largest purchase of our entire financial lives, and credit cards don't rate at all in comparison. How far out are we talking potential mortgage?
Thanks, actually not sure how far out but since the Fed is hiking the rate I'm thinking about pulling the date in rather than getting stuck with a high APR for 30 years.
You are absolutely right on the comparative value, 1.025^30 is over 2 which is such a big multiplier that can't really be used to compare with cards.
Athough on the other hand it is like throwing away $500~700 a card if they don't actually push me over the tier boundary, sigh
Thanks for the advice!
I'll skip the CCs, not really worth it at the end of the day (and the one I probably wanted the most is gone anyways
)