There are a lot of questions surrounding improving credit scores, and if you’re looking for a simple answer to how to increase your credit score, there isn’t one. There are so many factors involved with increasing your credit score. There are a few things to know about credit. First is that your credit score is a predictor of your future spending habits. Secondly credit is not a point system, but rather an algorithm meaning you do not get points for payments and paying off credit cards and
Archives for October 2020
BPMI or LPMI? Deciding on Private Mortgage Insurance
What is Private Mortgage Insurance? Private mortgage insurance (PMI) is a type of insurance that a borrower might be required to buy as a condition of a conventional mortgage loan. Most Approval Departments require PMI when a homebuyer makes a down payment of less than 20% of the home's purchase price or when you are refinancing a loan with less than 20% equity. When a borrower makes a down payment of less than 20% of the property's value, the mortgage's loan-to-value (LTV) ratio is over
Figuring Out Interest Rate vs APR: What’s the Real Cost of Borrowing?
What is an Interest Rate? An interest rate is the price of money, and a home mortgage interest rate is the price of money loaned against the security of a specific home. The interest rate is used to calculate the interest payment the borrower owes the lender.The rates quoted by lenders are annual rates. On most home mortgages, the interest payment is calculated monthly. Hence, divide the rate by 12 before calculating the payment.This is how your monthly Principal and Interest Payment is