September 10, 2010 Newsletter

As you may have heard interest rates are at an all time low. The majority of our closings right now are refinances as the rates are in the low 4s for 30 year fixed money and high 3’s for 15 year fixed. What has been consistent in the borrowers we have questioned is that their credit scores are all well above 700. In order to obtain the best possible rate, you should have a credit score of 720 or greater.

How do credit scores work? There are at least five factors to determine your score.

  • Payment history
  • Amount owed on credit lines and loans
  • Length of credit history
  • How much new credit applied for
  • Types of accounts you have

One recommendation that credit score experts suggest is always pay your bills as soon as they come in. They also suggest that you never charge more that 10 percent of your credit limit. For example if you have $30,000.00 available on a credit card, don’t charge more than $3000.00 in a month, and pay it off in its entirety if possible. Some experts suggest rotating your credit card usage. If you don’t know your credit score, you are entitled by law to receive your credit scores once a year without charge. Contact the credit score companies directly, don’t utilize “free credit score.com” unless you are prepared to have them solicit you to buy monthly updates, credit insurance, etc.

If you are unsure how to go about it contact us. We can assist or refer you to a loan officer who can help you determine what your score is and whether you need to take measures to improve your score prior to applying to refinance.

As the fall market approaches, it’s an excellent time to consider buying. Real estate sellers do not want to wait through the winter and may be more motivated to entertain realistic offers. If you are thinking of listing your home now, do not put it on the market for a higher price than is realistic, because you won’t get the viewings you want, and by the time you lower your price, the buyers you wanted have passed you by. Talk to a realtor and use their services. Unless you are one of the lucky parties who have found a buyer on your own, the market right now is working against you. Use the professionals.

As always, if you have a question or problem call or email me at tee.tillman@colonytitle.com or at 410 884 1160 x 3007. We want to be your title company and law firm.