Better Credit Scores Get Better Mortgage Rates

This week marks the start of the Refi Boom’s 7th month ; rates have been falling since early-April 2010. Whether you’re looking to refinance or buy a home, however, know that not everyone will qualify for today’s low rates.

Mortgage approvals are primarily based on good income, good equity and strong credit, and, without all three, the best rates of the day remain out of reach. Now, you can’t always ask for a raise and equity is a function of the housing market, but you can do something about your credit score.

In this 4-minute segment from NBC’s The Today Show, you learn some credit basics to help propel your score higher:

  • There’s no “quick fix” for credit. Time + Good Credit Behavior = Better FICOs.
  • Pay every bill when it comes due. Even one late payment can damage your score.
  • Don’t close old credit cards

Also among the segment’s advice is to stop worrying about whether rates have bottomed. Refinance today if it makes financial sense. Then, if, by chance, rates fall in the future, just refinance again.  Don’t be greedy, we’re told.

Related posts:

  1. Better Credit Scores Get Better Mortgage Rates
  2. See How Credit Missteps Lower Your Credit Score
  3. Basic Credit Scoring Tips For A Better Mortgage Rate

About Cheryl Bower

Cheryl has been a Lyon Hoag (Burlingame, CA) resident since 2004. She was raised in the Richmond District (San Francisco, CA). Licensed as a Realtor since 2005, she represents buyers & sellers in the San Francisco & San Mateo County real estate markets.