Is 719 a decent MyFICO score for getting a mortgage?
Basically, my mother wants to get another house soon. She has 30 years of credit history, and I’m well-seasoned in my own credit, but trying to help her check out things on her end in regards to her credit score. I’ve read about seemingly all “types” of credit scores. Apparently each credit reporting agency has their own version of a credit score. I’ve also heard of MyFICO, which many state is most likely close to what a mortgage company would pull.
So we checked it and her MyFICO was 719.
Decent enough to get a mortgage?
What is negatively impacting her is the debt to credit ratio (her credit limits aren’t as high as they could be, and the cards have high balances).
There is also “paid late” next to a Honda Finance, from 2002. It just says one time…over 90 days late. Basically, she helped her sorry brother (which she knows to never do again for anyone) get a vehicle. Him and and my mom’s own mother didn’t seem to think the brother should have to make any payments each month for the vehicle, so it got repo’d. Apparently that is to fall off in December of 2009.
However, she’s had a mortgage in her name for a very long time, and that has been paid on time every time. So have all of the other credit cards. What are the chances of her getting a mortgage?
At 719, they probably won’t even ask questions about any negative remarks on the credit report. It should be pretty safe.
Mortgage amount–does this seem right?
We have previously had our mortgage on auto withdrawal from our checking because we could save 1 percent on interest. I have since lost my job and have stopped that. Today, I get an “invoice” for the amount due and it is way higher than we were paying. Here are the specifics. Loan balance is $105,428.33. Previous payment was $948.11. New payment is $1,212.49. Interest rate on invoice is 6 percent, so I was previously paying 5 or 5.5 percent (I can’t remember if we were saving 1 or a 1/2 a percent for auto withdrawal–I have to find paperwork. The new amount is an increase of $264.38—that seems excessive. Is this right?
More information is needed. Without knowing the remaining term of the loan, we can’t determine what portion of the payment is principle and interest, and what portion is escrow. The escrow amount for taxes and insurance may account for some of the increase. In addition, you did not state if this is a fixed or variable rate loan. If you have an ARM, the base rate may have increased as well and the spread.
Need to double check accounting homework?
I need to make sure I have this portion of my accounting homework correct before I can move on to the rest of it so I don’t make any mistakes. Can someone please check to make sure I have it right and, if I don’t, please correct it? Thanks!
Instructions: Indicate for each of the following items whether it would appear on a balance sheet (BS) or an Income Statement (IS). If a balance sheet item, is it an asset (A), a liability (L), or an owners’ equity item (OE)?
1. Accounts payable – BS, L
2. Sales revenue – IS
3. Accounts Receivable – BS (A)
4. Advertising expense – BS (L)
5. Cash – BS (A)
6. Supplies – BS (A)
7. Consulting Revenue – IS
8. Land – BS (A)
9. Capital Stock – BS (OE)
10. Rent Expense – BS (L)
11. Equipment – BS (A)
12. Interest Receivable – BS (A)
13. Mortgage Payable – BS (L)
14. Notes Payable – BS (L)
15. Buildings – BS (A)
16. Salaries and Wages Expenses – IS
17. Retained Earnings – BS (OE)
18. Utilities Expense – IS
Two of them are incorrect.
4. Advertising expense – IS
10. Rent Expense – IS
All expenses are income statement accounts.
Mortgage preapproval — will this incident harm it?
Hi. My partner and I just got pre-approved to buy our first house this week. We both have great credit scores (750+) and a very substantial deposit saved up. But, I’m scared I blew it! I accidentally overdrew my savings account by approx $100 earlier this week — I made an online payment that was supposed to come out of my new bank account, but I forgot to check that the payment method change had saved before I sent it. Sure enough, it didn’t, and the credit card company posted it to my old bank account. Thanks to Overdraft protection, I didn’t bounce the payment…but I did overdraw savings by a little bit.
I found out the same day it happened, and I fixed it RIGHT AWAY by wiring money to the account immediately. Everything was back to normal by the end of the day, all accounts restored to a positive balance (in the black).
Here’s my question: is this likely to revoke our pre-approval? I feel so bad; I’ve never had something like this happen before. Please advise. Thanks!
Your new lender will not have any ability to retrieve this slip. Your debts have been paid on a timely basis (thanks to your overdraft protection), so no hits will appear in your credit. You don’t need to disclose the account where the “red” had occurred, so they won’t know about that either.
The only accounts you need to divulge are the ones you are withdrawing funds for the purchase of the new home as well as any required reserves (at least 2 months of PITI–new house payments). Since there minimal funds in that account, I would suggest not disclosing that account to assuage any concerns you have. This won’t make any difference in your rate your approval even if you disclose this information. If anyone says it does, find another lender. I believe you should qualify for an A++ loan.
I’m a mortgage broker for over 20 years. I wish I had clients such as yourself!
Check my answer to the finance question below whether it is correct? PLEASE HELP?(Serious answer please)?
PLEASE NO spam and DON’T give me just a yes or no or a non-serious answer to cheat points and to fool me.
Mainstay Ltd, a company whose shareholders are Australian residents and to whom it pays fully franked dividends, is planning to expand its existing operations by assessing various investments. To evaluate these alternative possibilities management will compare the cost of these projects against their return. The following information has been gathered which will apply to all projects.
Debentures currently outstanding were sold at a face value of $100 and a coupon rate of 10%pa. A merchant banker suggested that a new issue would require a coupon rate of 15%pa, to be fully subscribed at face value, with a seven year maturity. The outstanding debentures have seven years to maturity.
The current mortgage loan has 10 year remaining until maturity and the original terms of the loan taken out five years ago called for 8%pa before tax interest on the reducing balance. A new loan is estimated to cost 14%pa before tax on similar terms.
Preference shares were recently traded at $0.76, well below their $2 par value.
The last trade of ordinary shares was $0.90. The beta of Mainstay’s equity has been calculated at 1.2. Government securities are currently yielding 13.5% and the market risk premium is 10%.
The following information has been extracted from Mainstay’s latest balance sheet and is considered to be an optimal mix of financing sources:
Preference shares, 5%, $2 par
Paid up capital ($1 par)
Which of the following three projects should be accepted?
Internal Rate of Return
Rate of cost of the outstanding debentures:
100 = (100*10%)*PVIFA(7,Kd)+100[(1+Kd)^(-7)]
Rate of cost of the current mortgage loan before tax:
Cost of preference shares:
Rate of cost of the ordinary shares:
MV of current debentures = $3000000
MV of the current mortgage loan
MV of the preference shares = $[(500000/2)*0.76] = $190000
MV of the ordinary shares = $[(2000000/1)*0.90] = $1800000
Total market value = $(3000000+1000000+190000+1800000) = $5990000
So, all three projects should be accepted.
This question is repeated. It appears that:
1. There are three projects
2. The projects are mutually exclusive
3. The cost of the projects is not known
4. Sources of financing of these projects is not available
5. WACC has been calculated on existing sources and not in the sources required for the projects
6. Growth rates not given for future profitability
Please understand that in decision making future cash flows are considered. That means that the cost of existing sources are ignored being not relevant for decision making.
I hope you will find the answer a serious attempt from me.
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