5 Factors That Decide Your Credit Score
Credit scores range between 200 and 800,
with scores above 620 considered desirable for obtaining
a mortgage. The following factors affect your score:
1. Your payment history. Did you pay your credit
card obligations on time? If they were late, then how
late? Bankruptcy filing, liens, and collection activity
also impact your history.
2. How much you owe. If you owe a great
deal of money on numerous accounts, it can indicate that
you are overextended. However, it’s a good thing if you
have a good proportion of balances to total credit
3. The length of your credit history. In general,
the longer you have had accounts opened, the better. The
average consumer's oldest obligation is 14 years old,
indicating that he or she has been managing credit for
some time, according to Fair Isaac Corp., and only one
in 20 consumers have credit histories shorter than 2
4. How much new credit you have. New credit,
either installment payments or new credit cards, are
considered more risky, even if you pay them promptly.
5. The types of credit you use. Generally, it’s
desirable to have more than one type of credit —
installment loans, credit cards, and a mortgage, for
7 Reasons to Own Your Home
1. Tax breaks.
The U.S. Tax Code lets you deduct the interest you pay
on your mortgage, your property taxes, as well as some
of the costs involved in buying your home.
2. Appreciation. Real estate has long-term,
stable growth in value. While year-to-year fluctuations
are normal, median existing-home sale prices have
increased on average 6.5 percent each year from 1972
through 2005, and increased 88.5 percent over the last
10 years, according to the NATIONAL ASSOCIATION OF
REALTORS®. In addition, the number of U.S. households is
expected to rise 15 percent over the next decade,
creating continued high demand for housing.
3. Equity. Money paid for rent is money that
you’ll never see again, but mortgage payments let you
build equity ownership interest in your home.
4. Savings. Building equity in your home is a
ready-made savings plan. And when you sell, you can
generally take up to $250,000 ($500,000 for a married
couple) as gain without owing any federal income tax.
5. Predictability. Unlike rent, your
fixed-mortgage payments don’t rise over the years so
your housing costs may actually decline as you own the
home longer. However, keep in mind that property taxes
and insurance costs will increase.
6. Freedom. The home is yours. You can decorate
any way you want and benefit from your investment for as
long as you own the home.
7. Stability. Remaining in one neighborhood for
several years gives you a chance to participate in
community activities, lets you and your family establish
lasting friendships, and offers your children the
benefit of educational continuity.
What’s a Home Warranty?
warranty is a service contract, normally for one year,
which helps protect home owners against the cost of
unexpected covered repairs or replacement on their major
systems and appliances that break down due to normal
wear and tear. Coverage is for systems and appliances in
good working order at the start of the contract.
your home warranty policy to see which of the following
items are covered. Also find out if the policy covers
the full replacement cost of an item.
Swimming pool (may be optional)