AND THE FACTORS THAT INFLUENCE IT
Length of Credit History
Amounts Owed
Types of Credit in Use
New Credit
Payment History
Timeliness of your payments is the single biggest contributor to your credit score. It's important not only to make your payments, but also to make them by their due dates.Tip: Have a system in place to assure your bills are always paid on time. Set up automatic withdrawals where appropriate.Tip: Keep a cash reserve account to cover payments during possible interruptions to your income.
Today’s rates
New Home Purchase
Conforming Interest rate
30-yr fixed 3.20%
Rates are not static, they often change throughout the day.
If another lender offers a lower rate, there's a buy-down involved.
Often not mentioned when quoting the lower rate
Actual rates vary based on Loan Amount, Middle Credit Score, DTI, Term
Today’s rates based on a purchase 760 middle score, conforming loan, detached, primary residence, non-self-employed, detached, primary home
Escrow accounts provide for the timely payment of taxes and insurance on your home. This prevents tax liens, loss of property and any lapse of insurance coverage.
As part of your regular mortgage payment, 1/12th of the annual cost is collected. These funds are held and paid out as bills come due. If taxes are $5,000 and insurance is $1,000 for a total of $6,000, you’ll pay $500 into escrow each month. The balance will build until an outgoing payment is made.
The minimum required balance is usually a two month cushion to assure that sufficient funds are in the account even if payments are interrupted.
The minimum is different from the starting amount to make sure sufficient funds are available to make the first tax or insurance payment when due.
So how does an escrow account help you?
You have a consistent monthly expense instead of large bills a few times per year.
The money in the account is always yours. You receive any remaining balance at sale or refinance.
You might enjoy more competitive interest rates. Loans without an escrow account will often incur a price adjustment.
If you have questions about escrow accounts or mortgages in general, please give us a call. We’re here to help.
Shawn SmithMLO/Broker | NMLS # 863501(214) 396-3650 | Mobile: (817) 706-8619shawn@sublimefinancial.comwww.sublimefinancial.comSublime Financial, LLC14785 Preston Rd Dallas TX 75254
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