Valeria Gaufillier

Bringing Dreams to Reality

Understanding Your FICO Score: Key to Better Home Loan Rates

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When you’re looking to buy a home, one of the most important numbers you need to know is your FICO score. This three-digit number represents your creditworthiness and plays a crucial role in determining the terms of your home loan. Let’s discuss what a FICO score is, how it’s calculated, and why it matters for your home-buying journey.

What is a FICO Score?

A FICO score is a numerical representation of your creditworthiness, ranging from 300 to 850. It is calculated based on your credit report, which includes your payment history, amounts owed, length of credit history, new credit, and types of credit used. Essentially, it gives lenders an idea of how likely you are to repay borrowed money.

How is Your FICO Score Calculated?

  1. Payment History (35%): Your track record of making payments on time.
  2. Amounts Owed (30%): The total amount of credit and loans you are using compared to your total credit limit.
  3. Length of Credit History (15%): How long you’ve been using credit.
  4. New Credit (10%): Recent credit inquiries and newly opened accounts.
  5. Types of Credit Used (10%): Your mix of credit accounts, such as credit cards, mortgage loans, and car loans.

Why Does Your FICO Score Matter?

Your FICO score is a critical factor that lenders use to determine your eligibility for a mortgage and the interest rate you will be offered. A higher score can lead to better loan terms, such as lower interest rates, which can save you thousands of dollars over the life of your mortgage. Conversely, a lower score might result in higher interest rates or even difficulty securing a loan.

Tips to Improve Your FICO Score

  1. Pay Your Bills on Time: Consistently paying your bills by their due dates is the most impactful action you can take to improve your score.
  2. Reduce Your Debt: Aim to keep your credit card balances low relative to your credit limits.
  3. Check Your Credit Report Regularly: Ensure there are no errors on your report that could be negatively affecting your score.
  4. Limit New Credit Applications: Too many inquiries in a short period can lower your score.
  5. Maintain a Mix of Credit Types: Having a variety of credit types can positively influence your score.

Understanding and improving your FICO score is crucial for securing the best possible terms on a home loan. If you’re ready to take the next step in your home-buying journey, contact me today for personalized advice and guidance on your mortgage options. Let’s work together to make your dream home a reality!

What’s Ahead For Mortgage Rates This Week – August 5th, 2024

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The Federal Reserve’s decision to maintain the current interest rates has paved the way for a potential rate cut in September. While this news has been met enthusiastically by lending partners, the broader markets have indicated a slightly less warm reception despite both the data and Federal Reserve’s intentions being a match. Until September, we can expect a lull in significant data releases, with more substantial decisions anticipated then.

FOMC Rate Decision

Powell stated that the Federal Reserve seeks “a little more confidence” that inflation is consistently trending downward before taking action. The Federal Reserve’s benchmark short-term interest rate now stands at 5.25% to 5.5%. Although consumer prices spiked briefly in the first few months of the year, causing the Federal Reserve to hesitate, inflation has since calmed.

Consumer Confidence 

The index of consumer confidence rose to 100.3 in July from a revised 97.8 in the prior month, the Conference Board said Tuesday. Economists polled by the Wall Street Journal had forecast the index would slip to 99.5 in July.

U.S. Hourly Wages

Wages rose a mild 0.2% last month. The increase in pay over the past year slowed to 3.6% from 3.8% in the prior month and is returning close to pre-pandemic levels.

Primary Mortgage Market Survey Index

  • 15-Yr FRM rates are seeing a decrease by -0.08% with the current rate at 5.99%
  • 30-Yr FRM rates are seeing a decrease by -0.05% with the current rate at 6.73%

MND Rate Index

  • 30-Yr FHA rates saw a -0.22% decrease for this week. Current rates at 6.10%
  • 30-Yr VA rates saw a -0.22% decrease for this week. Current rates at 6.12%

Jobless Claims

Initial Claims were reported to be 249,000 compared to the expected claims of 235,000. The prior week landed at 235,000.

What’s Ahead

Last week was tense as everyone anticipated the Federal Reserve’s decision to maintain interest rates. This week, apart from the usual unemployment data, there are only minor releases like the US Services PMI and Consumer Credit Reports, which aren’t expected to have a significant impact.

How to Upkeep Your Home with a Year-Round Maintenance Checklist

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Your home is more than just a building; it’s the setting for your life story. As you plan your monthly calendar, why not include enhancing and maintaining your home? Here, we provide a thorough guide of home maintenance tasks organized into monthly, seasonal, and year-round tips.

Monthly Home Maintenance Tips

Appliance Check – Regularly inspect and clean appliances such as refrigerator coils, dishwasher filters, and range hood filters. This not only keeps them running smoothly but also extends their lifespan.

Inspect Plumbing – Check for water pressure issues, dripping faucets, and running toilets. Tackling these promptly can conserve water and prevent costly repairs.

Outdoor Landscape Inspection – Examine gutters for debris and blockages. Clear them to ensure proper water flow and prevent potential water damage. Also, check your yard for drainage issues and make necessary adjustments to avoid water pooling around your home.

Pest Control – Look for signs of pests like rodents, insects, or termites. If you notice any issues, take steps to address them by sealing entry points, setting traps, or calling a pest control professional.

Seasonal Home Maintenance Tips

Spring

Exterior Inspection – Check for any winter damage on your home’s exterior, including roof shingles, siding, and foundation cracks.

Landscaping – Cut back trees and shrubs, clear debris from gutters, and check irrigation systems.

Summer

Swimming Pool Care – If you have a pool, perform regular maintenance like cleaning filters, checking water chemistry, and skimming for debris.

Deck and Patio Maintenance – Clean and reseal your deck or patio to protect it from the elements.

Water Usage Assessment – Reassess your water usage to ensure efficiency during the hot and dry months while maintaining your landscape.

Fall

Gutter Cleaning – Clean gutters at least two times a year to prevent clogs and ensure proper drainage.

Heating System Maintenance – Schedule a professional inspection of your heating system to ensure it’s ready for winter.

Lawn and Garden Watering Schedule – Adjust watering to early morning or late evening when temperatures are lower to reduce water evaporation.

Winter

Weatherproofing – Seal gaps in windows and doors to improve energy efficiency and reduce heating costs.

Insulation Check – Inspect caulking and weatherstripping around windows and doors, resealing any gaps to improve insulation.

Emergency Kits – Prepare kits with essential supplies in case of winter storms or power outages.

Year-Round Home Maintenance Tips

Leak Inspections – Regularly check for signs of water leaks or damage. Fixing them promptly can prevent costly repairs.

HVAC System Maintenance – Change air filters regularly and schedule annual professional maintenance for your heating and cooling systems.

Chimney Inspection and Cleaning – If you have a fireplace, have your chimney inspected and cleaned by a professional to remove creosote buildup, a potential fire hazard.

Roof Inspection – Examine your roof for loose, damaged, or missing shingles. Address issues promptly to prevent leaks and extend the roof’s life.

Safety Device Checks
Test smoke and carbon monoxide detectors monthly to ensure they work properly. Replace or service fire extinguishers as needed.

Maintaining Home Value on a Budget

DIY Repairs – Many maintenance tasks can be tackled with basic tools and knowledge. Save money by handling smaller repairs yourself.

Regular Cleaning – Keeping your home clean not only makes it more appealing but also prevents wear and tear.

Energy Efficiency – Invest in energy-efficient appliances and lighting to lower utility bills and increase your home’s value.

Plan and Prioritize – Create a maintenance schedule and budget. Prioritize essential repairs and upgrades.

Mastering home maintenance is about more than keeping your property in good condition; it’s about ensuring its value appreciates over time. A well-maintained home becomes a foundation for cherished memories and an investment that grows.

By following this comprehensive checklist of monthly, seasonal, and year-round tips, along with cost-effective strategies, you can maintain your home’s value without breaking the bank. Start your home maintenance journey today and enjoy a safe, comfortable, and valuable living space for years to come.

Company NMLS #328297

Equal Housing Lender


90 Almeria Ave #204
Coral Gables, FL 33134