A rapid re-score was submitted by my mortgage banker yesterday and he said he would have a decision on pre-approval of USDA guaranteed loan on 4/7.
I only need 8 points to push my median score to above 640 or my lowest score to jump 31 points. The re-score was to update 2 charged off private student loans that were PIF. They have been reporting monthly since the charge-off.
No I’m only left with 2 small personal loan charge offs that are 2+ years old (not paid) and 1 other PIF charge-off that will be there for a while.
No lates for over 12 months and less than 10% total utilization on my revolving credit (1 card at 15-20% and 3 cards at 0%)
Man, this is nerve racking…
What is Mortgage Amortization?
Amortization is arguably the most evil component of our financial system.
Amortization guarantees the money lender gets more profits and you retain
less equity early on in ownership of a property.
If you decide you’ll remain for the long term (20-30 years) you will only
have majority ownership after 10-15 years of ownership. If you decide
living there is not for you, (good) you make a profit to offset the little
equity you had and (bad) you will walk with your down payment + whatever
equity you managed to pay into it. Of course, scenarios could be worse if
you put in a sizable amount of renovations or improvements to the property.
Most people will simply use it as a large down payment on a more expensive
home (to avoid capital gains tax)… and they get back to paying monthly
mortgage payments. Your home will not let you get the better of the
government (taxes) nor of the financial institution (loan). Amortization
will won’t let you gain the system at all.
It is especially important when considering the length of the loan & when
you might sell. We opted into a 15 year mortgage on our first home to
build up the most equity as quickly as possible with no prepayment penalty.
Amortization: How mortgage amortization works on your home loan – YouTube –