Better Credit Scores Get Lower Pensacola Mortgage Rates

Dec. 1, 2010 - PRLog -- PENSACOLA, FL – The refinance boom has lasted 7 months thus far, and rates have been falling since early April of this year. Recent news from sources like myFICO.com and NBC’s The Today Show point out how your credit score may impact your refinance rates and what you can do about it. The FICO scoring system is used by credit companies to determine a potential client's creditworthiness. Whether you’re looking for a Pensacola Refinance or are planning on buying a home and need a Pensacola mortgage, you need to know if you will qualify for the low rates available today.

To put the low rates within reach, Pensacola mortgage lenders look for strong credit, good income and equity.  The three work in conjunction to judge which refinance rate you qualify for.  Although you may not have immediate control over salary and equity, you can do something about your credit score.
On NBC’s The Today Show segment titled “Is your credit score hurting refinancing?” we are given a few points on credit score basics:

•   There is no “quick fix” for credit. Time plus good credit equals better FICOs.
•   Don’t close old credit cards.
•   Pay every bill before it is due. A single late payment can damage your credit score.

The segment also advises to stop worrying about whether rates have bottomed out. Refinance your Pensacola mortgage today if it makes good financial sense. If rates fall in the future, you are still able to refinance again in the future.
MyFICO.com has recently published some common financial issues and how certain actions can impact your score.

Maxing Out a Credit Card:
•   Initial Score of 780: 25-45 point drop
•   Initial Score of 680: 10-30 point drop

A 30-day Delinquency:
•   Initial Score of 780: 90-110 point drop
•   Initial Score of 680: 60-80 point drop

Foreclosure:
•   Initial Score of 780: 140-160 point drop
•   Initial Score of 680: 85-105 point drop

Since credit scores are meant to predict a loan default, the higher your score, the more a financial problem can drop your FICO. Financial advisors point out that you should be using 10-30% of your available credit, and if you’re considering a mortgage or refinance you should avoid opening new credit accounts.

Since improving your credit score is something that you can begin today, you should make the decision to talk to your Pensacola Mortgage broker not only to start the process, but to seek out advice on how to obtain the target credit score you need in order to secure the best rates available in today’s market.

For further information about mortgages, refinancing, and general financial advice, visit http://www.pensacolamortgageloanrefinance.com

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Each client’s Pensacola Mortgage situation is unique and we will work together to develop plan that is best for you. Understanding how credit scores work is the first step. Visit http://pensacolamortgageloanrefinance.com to find out more today!