How To Get A Low Mortgage Interest Rate.

How to get a low mortgage interest rate.

If you hope to get a mortgage, either for a new house or to refinance, the biggest factor will be your credit score. Your credit score will determine how good of a rate you get or whether you get a loan at all.

The credit score isn't magic; it's a mathematical formula. It’s important that you know your credit score.

Different reporting agencies may use slightly different percentages, but it boils down to roughly this:

35% Paying Bills On time 30% How Much You Owe and How Much Credit You Have 15% How Long You've Had the Accounts 10% No New Accounts 10% Variety of Accounts

Here are a couple of suggestion that might help you.

***Use automated bill payment. Lots of people have the money to pay their bills; they're just too disorganized to do it. Automated bill payment is usually free, and some banks will even send out paper checks automatically to people you owe who don't take electronic bill payment.

It's especially helpful for credit cards, which are now scrounging for every fee they can get. And, most importantly, you won't get a ding on your credit report for being late.

***Pay down your credit card debt. Lenders don't want you to use more than 30% of your overall credit limit. Just because someone is willing to lend you money, doesn't mean you should take it.

They'll allow you to charge 100% or more because they can add extra fees. For a credit card company, someone who keeps a high balance and barely pays the minimum is the ideal customer; they generate the most fees. But for a mortgage lender, that person is a higher risk.

You also don't want to concentrate all your balance on one card, no matter what miles or rewards you're soaking up. Creditors look at your overall available credit and whether you are at your limit in any one account.

At HOPE we help our clients everyday make wise decisions on getting the highest crdeit score they can achieve. If you would like to know more please call us at 704-503-3669. We are waiting on your call.

Is It Okay To Co Sign A Loan?

I am often asked, "Is it okay for me to co sign a loan for a friend or family member?" My answer is always NO! There are several reasons I say no.

First of all unexpected things happen to all of us and it is easy for your friend or family member to get in a situation where they cannot make a payment. A new late on their credit report will also appear on yours and will drop your credit scores significantly. When you co sign for them, they have every intention on making every payment on time but we all know that can change quickly. As I said unexpected things happen that effects us all.

When you co sign, the debt of that loan will appear on your credit report and will be totaled into your debt to income ratio. This can effect your ability to qualify for future personal financial transactions. You become co responsible until that debt is paid in full.

We are all good hearted and want to help a friend or family member when we can, but obligating yourself for the duration of the loan is not a wise decision to make. Unexpected set backs can strain even the best of relationships.

It would be wise to make the decision that you will not co sign for anyone, ever. That way when someone comes to you and plays on your sympathy your decision is already made. You can simply say: "I made the decision a long time ago that I can not co sign for anyone, ever." They may be disappointed but they will get over it and you have protected from a difficult situation.

At HOPE we help our clients make wise decisions every day related to various credit issues they face. If you would like to know more about HOPE please call us at 704-503-3669. We will be glad to help you.

Teaching Kids About Money Part 5

Teaching Kids about Money – Part 5

by Michelle Lambright Black

Today we will be covering one final tip on how to effectively teach your children about money, helping to prepare them to be financially responsible adults.  Don’t forget, you can check out our blog archives for parts 1-4 in this series. 

Lesson #5:  Lead by Example

We believe this is the most important tip of the week, that’s why we have saved it for last.  Children, whether they be young or whether they be teenagers, are usually excellent observers.  Your child will learn more from your example than they will learn from anything else you teach them.  Therefore, if a child sees their parents making unwise financial decisions, such as racking up excessive credit card debt, buying homes and cars they cannot afford, and failing to save for the future, the child will learn to accept this kind of behavior as the norm. 

If you have been guilty of making poor financial choices in the past then now is the perfect time to change.  Beginning today, you can help to erase any bad examples in spending that you may have set for your child before.  By establishing a sound monthly budget now you can begin to teach your children how to handle money more effectively.

If you have any credit issues you may be facing or if you need assistance establishing a working monthly budget for your household please contact HOPE today.  Our specialists would love to assist you.  You can reach us at 704-499-9696 or you may email us by clicking on the following link:  http://hope4usa.com/contact-us-2/.  We can’t wait to hear from you!

Teaching Kids About Money Part 4

Teaching Kids about Money – Part 4

by Michelle Lambright Black

Thank you for checking out our blog today.  If you haven’t already read them, please be sure to check out parts 1-3 of this blog series on our website.  We hope you find our tips for teaching your children about money helpful.

Lesson #4:  Show Your Children How Much Things Cost

Many children, and even some teenagers, don’t truly realize how much things around them cost.  It is important for your child to have a grasp of the cost of things for two reasons.  First, it will help to make your child a more financially wise person, equipping them with the knowledge they will need to one day lead a financially independent life.  Second, if your child realizes how much things cost they can help the family to conserve and stretch its monthly budget.

One way to teach your child how much things cost is to teach them about conserving resources.  You can perform a “show and tell” in your own house showing your child why it is important not to be wasteful with things like hot water, electricity, disposable plates or utensils, groceries, etc.  By teaching your child to be a conservationist they can help the family save money and become a more environmentally friendly person.

Another great way to teach how much things cost is by showing your child a list of the monthly household bills.  You can show your child the bills themselves so that he or she is able to begin understanding the family’s cost of living.  Remember, this may be a little boring to your child, so you may want to find a way to slip a short demonstration of the monthly bills whenever you give him or her their weekly allowance. 

Feel free to leave comments on these blogs if you have found any of them to be helpful or insightful.  We want to know what you think.  Be sure to visit our website again tomorrow one final tip on teaching kids about money.

At HOPE we will help you achieve the credit score you desire so you can qualify for the lowest interest rates available to you. If you would like to know how please call us at 704-499-9696. We are waiting on your call.

Teaching Kids About Money Part 3

Teaching Kids about Money – Part 3

by Michelle Lambright Black

This week we are exploring simple, effective ways to teach children about money.  If you find any of these blogs helpful, please be sure to forward a link to your friends and family. 

Lesson #3:  Open a Bank Account in Your Child’s Name

As we continue discussing the theme of teaching children the value of money, and how to handle that money properly, we believe it is very important to cover the area of opening a bank account for your child.  Opening a bank account in your child’s name at an early age can go a long way in teaching him or her how to properly manage their money in the real world.  A bank account is especially helpful if you have teenage children; however, even children as young as 6 or 7 could benefit from having a bank account.  It can be a wonderful teaching tool for your child.

If you do open a bank account for your child, it is important to allow them to make regular deposits.  You can also set a limit on how much your child is allowed to withdraw from the account.  This is an important rule to remember since it will help to teach your child that just because money is in the bank does not mean that it all should be withdrawn or spent.  Also, if you are using the jar system discussed in yesterday’s blog, Teaching Kids about Money – Part 2, a bank account can be used in conjunction with this teaching technique.  You would simply have your child take the funds from the “savings jar” each week and deposit them into their bank account. 

Be sure to visit our website again tomorrow for more information regarding how you can teach your child to be financially responsible at a young age.  Also, please remember that if you have any credit issues you need assistance with, feel free to contact our caring staff at 704-499-9696.  We look forward to hearing from you soon!