Showing posts from July, 2022

What Makes up a Credit Score?

  What Makes up a Credit Score?  By: Greg McKinney Mineola TX Everyone has a credit score , but not everyone has a good credit score. Knowing what makes up these scores and how you can improve them is important. While perfect credit isn’t necessary, the higher you can get your score, the better rates and terms you’ll get on loans and personal finance products when you apply for them. Here’s what makes up your credit score. Payment History Your payment history makes up the largest part of your credit score and is the most important factor. Your payment history refers to how well you pay your bills on time and makes up 35% of your credit score. The credit bureaus work in increments of 30 days. If you miss a payment by 30 days, your credit score will drop quite a few points. If you don’t make up the payment by the time it hits 60 days late, your credit score drops again. This keeps going in 30-day increments until the creditor charges off the account and sends it to a collecti

What does it Mean to Refinance?

  What does it Mean to Refinance? By: Greg McKinney Mineola Texas   You’ve likely heard of many people refinancing over the last year. With interest rates at rock bottom levels, most people took advantage and refinanced, but what does it mean and is it worth it when rates increase?   Even though interest rates are higher, millions of people are still refinancing. While lowering your interest rate is a great reason to refinance, there are other reasons too.   What is a Refinance?   When you refinance your mortgage, you pay off one mortgage with a new one. It’s the same process as when you bought your home. You must prove you can afford the loan and have the necessary qualifying factors.  Homeowners can refinance to lower their interest rate, change their loan term, or take equity out of their homes.  How Refinancing Works   When you refinance, everything happens behind the scenes, just like when you bought your home. Your lender orders a payoff to make sure your new loan a