Todays Mortgage Rate by rej19063

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									Your Credit Score
    By Your Name
  Your Company Name
         Date
                      What is a Credit Score?

•   A 3-digit number used by lenders to evaluate the risk associated with
    lending you money

•   It is generated by a mathematical model created by Fair Isaac &
    Company in the 1950’s.

•   There are 3 Major Credit Bureaus, Equifax, Experian and Trans Union –
    You have 3 Scores

•   Scores range from 350-850
 What is a Good Score?

Above 720 =     Excellent

680 =           Good

620 =           Fair

Below 620 =     Poor
                             The Cost of Bad Credit
HOW MUCH WOULD YOUR MIDDLE SCORE COST YOU IN A MORTGAGE LOAN TRANSACTION
AT TODAYS RATES?

         Home Financing: A 30-Year Fixed with a loan principal amount of $359,650*

     FICO Score          APR Rate         Monthly Payment               Interest Paid
     Above 720            5.688%               $2085                     $390,833
       620-719          5.813-7.501         $2113-$2515             $401,115-$545,750
     Below 620         8.531-9.289%        $2,773-$2,969            $638,739-$709,162

        If your score improves to 720-850, you could save an additional $318,329
        If your score improves to 700-719, you could save an additional $308,047
        If your score improves to 675-699, you could save an additional $263,094
        If your score improves to 620-674, you could save an additional $163,422
 A borrower who increases his or her credit score from 620 to 720+ can potentially save $884 per
 month on mortgage payments, $10,608 per year, and approximately $318,329 over the life of the
 30-year loan.*
                  Five Factors of Credit Scoring

Payment History                                  Length of History
Late Pays
Collections
Charge-Offs
Repossessions                                     New Credit
Foreclosures                                      Soft Inquiries
Tax Liens                                         Hard Inquiries
BK’s
Judgments


                Amounts Owed        Types of Credit Used
                                    A Mortgage Loan
                Credit Cards
                                    An Auto Loan
                Mortgage Loans
                                    2-3 Major Credit Cards
                Auto Loans
                HELOC’s
                Installment Loans
    1. Payment History 35% – How do you pay your bills?

                 WHAT YOU SHOULD KNOW
     A recent
     Paying a collection
CONTENT REMOVED


      Being past due
      Derogatory accounts do NOT

FOR DEMO PURPOSES
     A divorce decree
         2. Amounts Owed 30% – Managing Your Debt

                   WHAT YOU SHOULD KNOW

   New debt
   Keep balances below
CONTENT REMOVED
   When preparing to
   Don’t consolidate

FOR DEMO PURPOSES


    If you go over the limit on your credit card
    HELOC’s
   Do not close credit cards EXCEPT
   USE YOUR CREDIT CARDS or
     3. Length of History 15% 4. Mix of Credit 10%

                WHAT YOU SHOULD KNOW
   Hold onto
   New credit users
CONTENT REMOVED


    The best mix of credit is
    The type of credit card matters because

FOR DEMO PURPOSES
   The best amount of credit cards to have is
                     5. Inquiries – 10%

                WHAT YOU SHOULD KNOW
   Soft vs. Hard Inquiries
   14 Day
CONTENT REMOVED


    Inquiries affect the score
    Inquiries can cost between

FOR DEMO PURPOSES
   You are Pre-Approved means
               START IMPROVING YOUR CREDIT SCORES TODAY!

Step 1 -




           CONTENT REMOVED
                 Step 2 -


           FOR DEMO PURPOSES
     Step 3-
    Contact Us

Your Company Name
      Address
       Phone
        Fax
        URL
       Email

								
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