Boise Mortgages

A misunderstanding regarding the way your credit card works could cost you money, and the lowest

Idaho Mortgage Rate.

Does the way you pay your credit card effect your credit score? I am asked this question a lot when speaking to my Idaho mortgage clients. Below I have prepared a list of common misunderstandings.

*Paying your credit card on time is all you need to worry about: In the old day we were taught that if you pay your balance on time, your credit score will never be tarnished. Unfortunately, that hasn’t been the case with the credit bureaus. Your score can drop, even if you make your payments on time. The hiccup in your financial history will occur if you’re maxing out your limit on a monthly basis. Credit bureaus will deduct points from your overall credit score if you get too close to your limit’s maximum. If you find you’re maxing out on a monthly basis, ask for an increased limit. A good rule of thumb is staying at 30% of the overall limit.

*If you don’t activate your card, your credit card account won’t count: If you get cold feet and decide that a credit card isn’t for you, failing to dial in the activation number won’t stop it from showing up on your credit score. The bureau still recognizes a new account, whether you activate it or not. Having more then 5 credit cards available to you can also lower your credit score indicating risk to the bureaus and your Idaho Mortgage lender.

*Your signature on the back of the card: On the back of a credit card is a little white box reserved for your John Hancock. The function of this signature box is extremely important: It’s the only form of ID a credit card company requires when you make a purchase. If a merchant asks for an ID, you have the right to refuse. In fact, you should immediately go on the defensive. The inquiry may be the act of an identity thief on the prowl who’s looking to scam your driver’s license number or other personal information.

* Don’t close old, paid-off accounts: We used to tell people to close accounts they weren’t using. Now here’s the word from direct from Craig Watts, an executive at Fair Isaac & Co., one of the leading credit scorers: “Closing accounts can never help your score, and often it can hurt. This knowledge is frustrating to those who want to simplify their lives and reduce the opportunities for identity theft by closing unused accounts. But credit facts are credit facts.

If you close your oldest accounts, it can actually shorten the length of your reported credit history and make you seem less credit-worthy.

Written by Lisa Kratz
Apex Mortgage | Meridian, Idaho | (208) 888-9251 | myIdahoHomeLoan.com

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Whether you’re shopping for an automobile, electronics, travel services or Idaho real estate, the internet has revolutionized the way people gather information about products and services. For people who are thinking about buying a new home, the change is apparent, as well. The internet now is the number one source of information. With online listings of homes for sale featuring streaming videos, panoramic pictures, prices, recent comparable sales, real estate taxes, Idaho
mortgage loan options, and more. Indeed, potential home buyers who choose to use the Internet to access new listings and narrow their search may be the best informed and most efficient that today’s real estate professionals have ever dealt with!

The Roll of an Idaho Real Estate Agent

In your typical home sale, there are two real estate professionals: one who works with the seller — called the listing agent — and one who works with the buyer — called the selling agent or buyers agent. The listing agent generally shares the sales commission with the selling agent who finds the buyer for the home. But the seller pays both agents, usually from the proceeds of the sale. In Idaho agents are required to disclose the type of relationship they have with you, and then, it’s up to you to decide whether you want them to represent you. Whether you meet an agent at an open house or get in touch with one on your own, be aware that they need to disclose important information about their business relationship with you. Just feel free to ask them upfront.

Think about this. If you hired a professional Idaho real estate agent, to sell your home at the highest most desirable price aren’t they ultimately working for you? If I were buying a home today, I would seek my own independent agent to work for me and help me secure the best possible deal in today’s buyers market.

Written by Lisa Kratz Apex Mortgage | Meridian, Idaho
| (208) 888-9251 | myIdahoHomeLoan.com

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“FED CUTS RATE TO 2%!”

Here’s the scenario:

You need to buy a home, or refinance your Idaho mortgage. You talk with a local lender choose the perfect loan program and rate, at which point you “lock in” your mortgage rate for 30 days — let’s say, at 6.5%.

The next day you see on the news: “Fed cuts rate to 2%.” Hopeful, you call your lender, “Does this mean my rate goes down a point, to 5.5%?”

The short answer is “No.”

Here’s the long answer:
It’s important to understand what “The Fed” is, what “The rate” is, and what affects - short term and long term - an increase or decrease announcement has.

“The Fed,” or Federal Reserve, is sort of a financial think tank and not, as many believe, part of our federal government. They perform information gathering and economic research. Their primary goal: Promote sustainable growth of the US economy. This includes, of course, fending off recession by doing things like keeping an eye on banks, promoting spending (and lending) as a means to infuse cash into the market and thereby help the economy, etc..

Rates monitored and set by the Fed are:

1. The Discount Rate (interest rate banks pay on short-term loans from a Federal Reserve Bank) and,
2. The Federal Funds Rate (interest rate at which a depository institution lends immediately available funds to another depository institution overnight).

This Federal Funds Rate is “The rate” that news reports are referring to when they talk about the Fed changing interest rates.

But, and heres the point, they are setting a target for this rate, not the actual rate itself. The actual rate itself is determined by the open market. So depending on a multitude of open market forces, banks may or may not react quickly to these changes, and when they do, mortgage rates may or may not be significantly affected. Credit cards and second mortgages are more likely to see immediate effects of a rate cut.

Many consumer loans are at or close to the “prime rate,” which is generally three percentage points higher than the federal funds rate. Although the prime tends to track up or down with the federal funds rate.

Longer-term, fixed-rate loans such as Idaho mortgages or student loans track with treasury bonds, so they’re not immediately affected by the Fed’s decision, but they follow broadly. On the other hand, many types of adjustable rate mortgages (ARM’s) are more likely to react (change up or down) sooner than later to Fed announcements.

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Written by Lisa Kratz and Mike Little of myIdahoHomeLoan.com
Apex Mortgage  |  Meridian, Idaho  |  (208) 888-9251

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Refinancing your Idaho Mortgage Loan and consolidating all your outstanding debts may still be effective even with rates up .50 point from 2 months ago. When considering the options of longer Idaho Mortgage terms such as 40 year and now 50 year amortizations you can reduce your monthly payments substantially and invest your savings in higher earning mutual funds for retirement. While enjoying your Idaho Mortgage interest tax Deduction each year!

There are many new Idaho Mortgage Loan products out that introduce the concept of utilizing a 2nd position Idaho Home Equity Loan that you pay your monthly bills with and for once in your life use the “banks money” to your advantage! This allows you to reduce your 1st Idaho Home Loan balance by tens of thousands per year! Call Lisa Kratz at 208-888-92151 and ask her about Boise Idaho’s Mortgage Merge account today.

The Sub prime Mortgage Market in Boise Idaho has literally disappeared. I estimate another 9-12 months before it bounces back and buyers with lower credit scores are able to get into a home with no money down.

When you have found the home of your dreams and have an excepted offer, be cautious with your Idaho Mortgage Rate shopping. A lot of lenders today are not ethical with the quotes they promise. A popular tactic right now is “bait and switch”. This is where the closing costs and interest rate are so far below industry it seems like the best deal imaginable. There are many people and businesses involved during a real estate transaction and everyone has to be paid. From the real estate appraiser, credit reporting agency, mortgage loan processor, real estate mortgage loan underwriter, mortgage loan broker, real estate title escrow officer, title insurance policies, etc. It is not an option for any of these services to be performed free of charge. Secure a good faith estimate from the start and when you find your favorite Idaho Mortgage Lender stay committed and focus on the end result, owning your own home!

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Lisa Kratz (208) 888-9251

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