Mortgage Loans (Part 2)

To understand more about the interest rate, you need to know how to calculate the payment which you have to pay for each month. Because your mortgage payment is effected by manyfactors and in this case you may know to the credit score which is considered by lenders and what you can do to improve it before you shop for a mortgage. the amount you put down on your home will affect to other aspects of your mortgage. But it is useful for you if you have a small down payment.

Your monthly principal and interest charges are known as by the rte and the amount of the loan, the rate and loan amount are effected by many factors. The rate depends on the credit score and the loan depends on the size of the down payment and the house's price.

There is the matter of mortgage insurance that is levied on borrowers who make a down payment less than 20%.

Mortgage lenders closely scrutinize your financial history to determine whether to approve your loan application. They will concern about your credit score report which has the details your payment and history on all loans, bankruptcy filings and other financial information.

I will show you some factors which are influence to your credit factor:

1, Past delinquency:

The persons who have failed to make payment in the past tend to do so n the future, this it against you, a 30 day delinquency withing the past 12 months hinders. your chance to get favorable mortgage terms.

2, Length of credit:

It is the longer you have had the credit, the better for you. At that time you can prove your financial status and the time will let the financial institution or individuals believe you ability to repay for them.

3, Credit use:

If you are maxed out or close to your credit limits, you will be viewed as a rishky with the financial institutions which want to let you borrow.

4, Mix of credit:

Someone with a combination of revolving and installment debt is considered less risky than person with only a secured credit card.

When you have a higher credit score, it will be easier for you to appear a lender. And also a good credit score will help you qualify for a mortgage loan and obtain better terms.

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