There are a lot of scams out there these days, none that we find as frustrating though as the infamous online credit score! Here we have one of the all-time greatest inventions to rip off the average consumer, why isn’t anybody creating a fuss about such a magnificent scam? The reason is because almost nobody understands how it all works and the powers to be keep it all very hush hush.
How many people have checked their scores online at some point? There is no great data on this but we are thinking the majority of everyone has checked their scores online. Now, out of all these millions of people, how many could use these exact scores for lending purposes? We are going to go with 0, give or take. This is due to the fact that online scoring models, even the ones provided by the bureaus themselves, are completely different from the scoring models that lenders use when a loan is being applied for. This makes the average online and the credit bureau’s scoring models completely worthless.
How is this legal you may ask? They don’t claim they are giving a FICO lending approved scores, they are saying is what “we” calculate your score to be, based on our system. Even on the rare occasion if they use a FICO model, there are over 50 of those scoring algorithms created so it’s unlikely to be the one your lender is using. Some of the online scores are so off it seems like a bad joke, like Transunion direct source who is Truecredit, their score range goes from an 501 to a 999 so you easily see yourself with an 800 or 900 but that doesn’t mean it’s worth the paper it’s printed on.
Another laughable aspect about this system is that you notice how a consumer never applies for a loan only to find out that their score is actually much higher than what they recently pulled online. In fact the average online score is roughly 40 points higher than what you see through a lender. The conspiracy theory behind this is that the better score you show someone on average, the more people you will attract to your website through referrals.
Kick your feet up – lean back, and rest assured you can be in the driver seat – when you meet with a real mortgage lender and get your true FICO mortgage score – and know all about the loan programs, options, LLPA info then you will be well informed to make the right decision.
So, What Is Your Credit Score?
Mortgage rates are poised to end September on a strong note. Entering the final week, rates moved close to recent lows experienced in the previous week. We can likely expect many borrowers to see these same rates through Friday, enjoying noticeable gains in the form of low closing costs and high lender credit. All in all, it’s one of the best days we have seen since early May.
This strong activity can be attributed to broad economic weakness. Fears among investors are driving stocks downward, which is generally good news for the mortgage market. The Federal Reserve’s decision to keep interest rates near zero has not provided investors with the certainty they need to pour money into riskier assets, so money has been moving out of stocks and into bonds, causing prices to go up and rates to go down.
Anybody planning to close on a loan within the coming thirty days may be well advised to lock in to current rates. Contact us to talk to a Lynnwood mortgage broker right away.
Going into the third week of September, mortgage rates appear to be doing nothing but waiting for Thursday’s FOMC Announcement. Indeed, the entire bond market is holding its breath to see what the Fed decides upon.
Should the Fed announce a rate hike, it would not necessarily be a negative force for mortgage rates. It is largely the uncertainty leading up to this decision that is having the most effect on our current rates. Indeed, the absence of volatility in the market for a while now can likely be attributed to this uncertainty, as investors are on hold in anticipation of a decision.
Once the announcement is made, regardless of what it turns out to be, we can likely expect some dramatic activity. One way or another, rates could either rally or sell off. Many people trying to decide whether to lock or float would probably be wise to secure the reasonably low rates that are currently available, while only those who are sure they can afford to be wrong should take the chance of floating. Further, as we cannot necessarily expect that this lack of volatility will persist right up to Thursday, sooner is better than later.
We’re past the halfway point in 2015, and the news is not good. According to Fannie Mae’s economic team, the outlook for the economy is less robust than had been anticipated earlier in the year. This is as a result of the second quarter economic growth reports, which came in lower than expected. Even factoring in the revised, improved growth reports of the first quarter of the year, the full-year outlook for 2015 remains at an improvement of 2.1%.
Currently, we are looking to the housing market to be a bigger contributor to growth for the rest of the year. Though activity was mixed throughout June, the first half of 2015 showed improvement over the same period in 2014. Existing home sales in June were at their strongest pace since February of 2007, and marketing time is shorter than it has been in the past four years. Throughout 2015 so far, we have seen a year-to-date improvement over 2014 of 7.7% in existing home sales, 20.3% in new home sales, 9.1% in single-family housing starts, and 14.4% in multifamily housing starts.