Reasons To Use Home Equity
…Some Good, Some Bad
Homeowners who have equity might be tempted to extract some of that wealth and use it for other immediate needs or wants. But should you use a cash-out refinance, home equity loan or home equity line of credit to replace your roof? What about to renovate or remodel your home? Pay off your credit cards? Finance your childbs college education? Supplement your retirement income? Which uses of home equity are smarter or more legitimate than others?
An easy answer would be nice. But such decisions arenbt simple. In fact, any reason might be good or bad, depending on your situation. It all comes down to responsible borrowing. With that in mind, herebs a look at six common home equity cash-out uses that might make sense for you.
Renovate • Retirement IncomeStudent Loan • Emergency Fund
Pay Off Credit Cards • Invest
But A House, Condo Or Town House As Your
Home? What Type Of Home Will You Buy?
When itbs time to buy a home, many buyers confront the question: single-family house, or a unit in a multifamily town house or condo?
Prospective homebuyers have to consider many factors, including:
Location and lifestyle, Maintenance costs, Rules of ownership, Interest rates and Price, and Monthly fees.
Here is a more detailed look at how to decide whether to buy a house, town house or condo.
Does location match lifestyle? Location is often the deciding factor. For professionals who want to be close to the action, a short walk to restaurants, and shops is a higher priority than having more space and a private yard.
What Are The Maintenance Costs?Can You Abide By The Rules (CC&Rs & HOA)?
Are You Able To Qualify?
Are Association Fees Worth It?
5 Tips For A Successful Yard Sale
Having a yard sale is a fun way to declutter your home while making a few bucks. But without proper planning, a lot can go wrong. Maybe you’ll fail to attract enough shoppers. Or, you may run out of change just as sales get hopping. If you have a well-organized yard sale, you’ll probably have a better chance of selling your stuff. Yard sale experts offer the following tips for making your yard sale a success.
Pick The Right Day Of The Week And Week Of The MonthUse Advertising And Be Specific
Keep Items At Eye Level
Have Enough Change On Hand
Price Items To Sell
If you are planning to remodel, from a small project, a major renovation or complete new construction, be sure to do your due diligence in the selection process of a contractor. Check to see if your contractor is Licensed, Bonded, Has Insurance and Check References,
Complaints & BBB Rating.
Checking Your Credit Report And FICO Score
This central site allows you to request a FREE credit file disclosure, commonly called a credit report, once every 12 months from each of the nationwide consumer credit reporting companies: Equifax, Experian and TransUnion. A trick, since there are three reporting agencies is to request a report, one agency at a time every four months. That way youbll be checking three times a year. Prepare the mailings all in advance and just mail!
How FICO Scoring Works
Along with the credit report, lenders can also obtain a credit score based on the information in the report. That score is calculated by a mathematical equation that evaluates many types of information from your credit report at that agency. By comparing this information to the patterns in hundreds of thousands of past credit reports, the score identifies your level of future credit risk.
In order for a FICO score to be calculated on your credit report, the report must contain at least one account which has been open for six months or greater, contain at least one account that has been updated in the past six months. This ensures that there is enough informationband enough recent information in your report on which to base a score.
What A FICO Score Considers
A score takes into consideration all these categories, not just one or two. The importance of any factor depends on the overall information. Your FICO score only looks at information in your credit report. Your score considers both positive and negative information.
PAYMENT HISTORY What is your track record? Approximately 35% of your score.
AMOUNTS OWED How much is too much? Approximately 30% of your score.
CREDIT HISTORY How established is yours? Approximately 15% of your score.
NEW CREDIT Are you adding more debt? Approximately 10% of your score.
TYPES OF CREDIT IN USE Is it a bhealthyb mix? Approximately 10% of your score.
Interpreting Your FICO Score
When a lender receives your Fair Isaac credit bureau risk score, up to four bscore reasonsb are also delivered. These are the top reasons why your score was not higher. If the lender rejects your request for credit, and your FICO score was part of the reason, these score reasons can help the lender tell you why your score wasnbt higher.
These score reasons are more useful than the score itself in helping you determine whether your credit report might contain errors, and how you might improve your credit health. However, if you already have a high score (for example, in the mid-700s or higher) some of the reasons may not be very helpful, as they may be marginal factors related to three categories (length of credit history, new credit and types of credit in use).