fico - Articles

Ways a Mortgage Can Help or Hurt Your Credit

By Gerri Detweiler Will a mortgage help -- or hurt -- your credit? If you're thinking, "Well, both," you're exactly right. But there are subtleties involved that may surprise you. To get a mortgage these days, a lender is going to closely scrutinize your income, debt and credit history before giving you the loan. That... Continue Reading »

Credit Score Catch-22: Mortgage Shopping Can Raise Your Rate

It's a Catch-22 if ever there was one. The very process of shopping around for a low interest rate on a mortgage can adversely impact your credit score and cost you your eligibility for the cheaper loan you're seeking. Each time a lender does what is known as a "hard pull" on your credit report, their action actually... Continue Reading »

New Credit Scoring Hinders Homebuyers

New credit-scoring rules are making qualifying for a mortgage more challenging than ever. Our sister site WalletPop explains how Fair Isaac, the company that produces the dreaded FICO score, has introduced a new, more rigorous version called the FICO 8 Mortgage Score. Another credit score, known as VantageScore, is... Continue Reading »

Freddie Mac Pinches Lenders, Homebuyers Pay

Freddie Mac is squeezing lenders tighter this spring, and that means higher fees will be passed on to homebuyers. The government-sponsored mortgage-finance company stated in a memo last week that it will raise upfront fees to lenders on riskier home loans, including those for homebuyers with lower credit ratings and... Continue Reading »

Refinance: Playing by Tighter Loan Rules

If you're having trouble taking advantage of today's historically low interest rates, you're not alone. Even someone whose been in the real estate business for years as a real estate appraiser, Anthony Lavia, told HousingWatch that he's been denied refis by two banks even though he owes just about 60 percent on his home in... Continue Reading »

FHA Sets Credit Score Limits for First Time

The most flexible first-time homebuyer loan just became a bit more stringent. Starting Oct. 4, homebuyers must have a minimum credit score of 500 to be eligible for a Federal Housing Administration-insured mortgage. Borrowers seeking a single-family home mortgage with credit scores ranging from 500 to 579 will be limited... Continue Reading »

Credit Scores Drop, Making More Americans Poor Lending Risks

The days of living large on debt are coming to a crashing halt, as more than a quarter of U.S. consumers are generating low credit scores. Credit reporting company FICO Inc. reported that 25.5 percent of all consumers, around 43.3 million, have credit scores lower than 599, making them a poor credit risk in the eyes of... Continue Reading »

First-Time Homebuyer's Guide

Mike Valdez fits the profile of a savvy first-time homebuyer perfectly. A 34-year-old financial analyst from New Rochelle, N.Y., he and his family had grown sick of living the renter's life. So two years ago he decided to test the market and find a townhouse for his growing family. But despite his financial aptitude, he... Continue Reading »

Refinancing Do's and Don'ts

For Ernie and Laura Anastos of Arlington, Va., 2010's historically low interest rates couldn't have come at a better time. After careful analysis, the couple ditched their 7-year-old balloon mortgage with its 5.375 percent interest rate in favor of a 4.75 percent, 20-year fixed rate. Their monthly payments have risen... Continue Reading »

Paying Down Debt: The Right and Wrong Ways to Do It SPONSORSHIP

The Federal Reserve recently announced that consumer debt dropped by 2.4 percent in the first quarter of this year, the seventh straight quarterly decline. With the amount of consumer debt shrinking, many home buyers are revisiting their credit scores, and trying to find ways to boost them. A score of 740 or above is... Continue Reading »

FICO Credit Scores Lose Some Legitimacy, Thanks to Court Decision

You may not realize it, but when you buy a score from one of the three credit bureaus you could be buying a VantageScore rather than a FICO score. Why does it matter? Mortgage lenders likely are using the FICO score, so what you just paid for won't give you the information you need. A FICO score, named for the Fair Isaac... Continue Reading »

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