I live in Southern California. I have a 30 year fixed mortgage at 5.4%. Currently my credit is good. If something happens and my credit goes bad, will my 30 yr fixed mortgage change as well?
2007-02-08 12:13:06 · 8 answers · asked by ocean 3 in Business & Finance ➔ Renting & Real Estate
No, you're thinking of the universal default rule with credit cards where your APR can go higher if you miss a payment on the aforementioned credit card or any other credit cards. But credit card payments are usually always variable.
With a mortgage, regardless of your credit score, your interest rate will remain fixed for 30 years if you're in a 30yr fixed mortgage. The only downside is if you need to refinance down the line, or if you buy a new home.
By the way, you've got a great rate.
Learn more at http://www.thetruthaboutmortgage.com
2007-02-12 06:24:00 · answer #1 · answered by Todd S 3 · 0⤊ 0⤋
A 30 year fixed mortgage will maintain the same interest rate you started at for the life of the loan (the full 30 years) no matter how your credit score changes.
By the way, in case you didn't know, you have a great interest rate for a 30 year fixed in California. Currently the interest rate for a 30 year fixed, no points is 6.250%.
2007-02-08 15:38:55 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Unfortunately, damaging credit can take place easily and quickly, whereas repairing it can be a more lengthy and challenging process. My first suggestion would be to utilize your free annual credit reports, and use them to initiate challenges with everything derogatory on each of them. You need to order a separate report from each bureau (TransUnion, Equifax, and Experian) and the ID number will be your gateway to doing the online challenges. In general the bureaus wrap up these investigations in about 30 days or so, and delete everything that has been challenged, unless it has been substantiated by the creditor that reported it. After that has taken place, you will then most likely have a smaller batch of problems to resolve. Find a good mortgage consultant (like me - but I'm not advertising) who can then work through the process of identifying where you will get the most "bang for the buck" in anything you decide to pay off. Also see if someone with established credit will add you as an "authorized user" to their accounts - this should have the effect of raising your score. As far as applying for new credit, try the gas companies, as they can be lenient on their extension of credit - and also consider a small secured card. Make sure to get one with the least painful fees and one that does not charge a "monthly participation fee." Finally, make sure that your revolving debt (credit cards) accounts are half or less of the approved balances - 33% or less is probably ideal, but use the "half or less" as your rule of thumb. So, if your approved limit is 1,000 on a given card, make sure that your balance is less than 500, etc. The process can take a bit of time, but it is very possible to accomplish the turnaround you seek. I hope things work out for the best!
2016-05-23 23:09:31 · answer #3 · answered by Anonymous · 0⤊ 0⤋
No your interest rate will not change as long as you keep the current mortgage you have now. Once you try and refinance your mortgage that when you will see an hike in your mortgage rate. If you need extra cash try and get a home equity line or a 2nd mortgage on your home! What ever you do not refinance your mortgage with the interest rate you have now.
www.anycreditmortgage.biz
2007-02-12 10:39:15 · answer #4 · answered by ffrank01 1 · 0⤊ 0⤋
If your loan is truly afixed loan, the interest on it can not change. If you decide to refinance however, your interest rate will be reshaped against your credit at that time. In southern California, a 30 yr at 5.4 is a good situation. I wouldn't change that unless you absolutely have to.
2007-02-08 13:47:37 · answer #5 · answered by Ron B 3 · 0⤊ 0⤋
Bad credit is one of the worst problems to have... however there exists a solution.
I will hereby talk from my personal experience.
I did debt consolidation a couple of years ago, however If I had to do it again I would pay to some minor details,
if someone wants to get out of debt today it is pretty easy with a debt consolidation plan, however it may get a bit tricky at times, I suggest you get as much information as possible online on this first,
a good place to start in my humble opinion is astraight to the point ebook with question and answer I found :
http://umgarticles.atspace.com/debt-consolidation.htm
if it helps kindly remember me in your voting!.. cheers!
2007-02-08 18:37:54 · answer #6 · answered by gabriel jones 4 · 0⤊ 0⤋
No. Not unless you have something strange in your loan papers that allows this, but I've never heard of such a thing. You rate is fixed for the life of the loan.
2007-02-08 12:33:02 · answer #7 · answered by CJKatl 4 · 0⤊ 0⤋
no. you got a good rate there. if you look after you expences and not get carried away on it then you should be ok.
2007-02-10 10:09:10 · answer #8 · answered by bidia 3 · 0⤊ 0⤋