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Different Types of Credit Scores: Which Are You Getting?

As someone who has owned/operated a credit message board for 4 years running, I get quite a bit of feedback from consumers. Based on that experience, if I had to pinpoint the #1 most confusing and least understood topic within this niche, do you know what it would be? Credit scores. And my reason for saying that may not be what you think. Sure, a credit score is cryptic by nature, since its formula is a secret. But that’s not why it’s so misunderstand. Rather, the reason credit scores are confusing is because most websites that sell scores are misleading consumers. FICO vs. everyone else If you go apply for a credit card, mortgage, or car loan, there’s a good chance the creditor will be using your FICO score as part of their decision. FICO (formerly known as Fair, Isaac and Company) has been around since 1956. They were the first in the credit scoring industry. During FICO’s first couple decades, the ...

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Why Refinance Back into a 30-Year Loan?

Refinance Your Mortgage for Rate and Payment Reductions Atlanta, GA – One of the biggest reasons homeowners refinance their mortgage is to obtain a lower interest rate and lower monthly payments. By refinancing, the borrower pays off their existing mortgage and replaces it with a new one. This can often be accomplished with a no-points no-fees loan program, which essentially means at “no cost” to the borrower. In the no-points no-fees scenario, the mortgage consultant uses rebate monies paid by the lender to pay off non-recurring closing costs for the borrower. These are “one time” fees such as escrow or attorney fees, title insurance, document preparation, tax service, flood certification, processing and underwriting fees, etc. The borrower is still responsible for recurring fees such as interim insurance, property taxes or insurance policy payments. Refinancing typically occurs when mortgage interest rates drop significantly, but borrowers with recently improved credit scores (from paying off credit card debt, making mortgage payments on time, ...

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