Greg McKinney Mineola Texas

  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...

  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 order...

  10 Must-Know Factors about FHA Loans  By: Greg McKinney Mineola Texas FHA loans are a great loan for first-time homebuyers and even those that already owned a home before. They don’t require perfect credit and have other forgiving qualifying requirements that make it an easier loan to obtain.  If you’re thinking about buying a house and are considering FHA financing , here’s everything you must know.  1.     You can have a credit score as low as 580   FHA loans don’t require great credit. Unlike conventional loans which require a 660 or higher score, you can get approved with a credit score as low as 580.   This falls under the ‘fair’ category in the credit tiers, which for most lenders would be a reason to decline your application, but FHA loans allow it.  2.     You can get an FHA loan with a 500-credit score and a 10% down payment   Here’s even better news. If you have a lower credit score but hav...

  7 Ways to Improve your Credit Score By Greg McKinney Mineola Texas  A good credit score gets you far in life. Whether you’re applying for a new job, applying for new credit, or need to start new utilities or insurance, your credit score is a factor.  You can get access to your credit score from most banks and credit card companies. Most financial institutions offer free access if you activate the program. The credit score may not be exactly what other lenders see, but you’ll get an idea of where your credit stands.  If you find out that you don’t have great credit, it’s easy to improve it with these simple steps.  1.     Check your credit report often   Everyone gets free access to their credit report here . Since the pandemic, they’ve allowed free weekly access to your credit report. You may not have to check it quite that often but set regular intervals to pull your credit reports and check the information. Each credit bureau ...

  Ask Yourself These Questions Before Opening a Credit Card  By Greg McKinney Mineola TX Credit cards can be a great personal finance tool, but they can also make things go incredibly wrong. Knowing how to use a credit card and choosing the right one for the job is important, but not everyone knows how to do it.   Here’s the truth, though.   You might not even need a credit card right now. Ads for credit cards are everywhere you look today, making it easy to fall into the trap of needing every shiny new card offered, but they’re not always all they’re cracked up to be.   Ask yourself these 5 questions before opening a credit card to make sure you’re making the right choice.   Why do you Want the Credit Card?   Ask yourself this important question first. Why do you want a credit card? There are many answers, and most are acceptable, except one.   Here are some common reasons: ·        You want to earn rewards from a re...

  How Much House can I Afford? By: Greg McKinney Mineola TX Buying a house is exciting, but before you look for your dream home, you should know how much home you can afford. The typical rule is to keep your total debts including your new mortgage at 36% of your gross monthly income (income before taxes). But there are a few other factors you must consider.  Calculating your Debt-to-Income Ratio   Your DTI is the comparison of your monthly debts to your income before taxes. Your monthly debts consist of any student loans, personal loans, car payments, minimum credit card payments, and the total mortgage payment (principal, interest, taxes, and insurance).  Keeping your DTI at 36% ensures financial affordability and security while allowing you to borrow money to buy a home. Most banks, however, go up to a 43% DTI if your other qualifying factors allow it.  The Down Payment   Another factor in how much house you can afford is your down payment. Y...

  How Much Should You Put Down on a House? By: Greg McKinney Mineola Texas   Everyone wants the magic answer – how much money should you put down on a house? Is it 20%? Can you put down less or more than that?  The down payment isn’t a one-size-fits-all approach. It varies by borrower, loan program, and situation. Here’s what you should know.   Do you Need a 20 Percent Down Payment?   The good news is you don’t need a 20% down payment all the time. Is it nice?   Sure. But if you don’t have 20% to put down, you can still get a mortgage. A 20% down payment gives you instant equity in your home. It also lowers your risk of default which may allow lenders to give you more attractive financing options.   If you’re taking out a conventional loan, it also allows you to avoid Private Mortgage Insurance (PMI). But don’t worry, if you take out conventional financing and put down less than 20%, you can cancel the PMI once you owe less than 80% of th...