UPBEAT TIMES • March 2014 • 15 Real Estate Home THE Mortgage Coach~Got Credit? by Barry O'Meara ~ Comments & ?'s welcome • barryo@stearns.com


carrying too much debt all affects your final score. The model developed by Fair Isaac breaks the scoring into five categories: payment his- tory; amount owed;


length


of history; new credit; types of credit. Sixty-five percent of the scoring is weighed on payment history much we owe. knowledge,


and how it makes


So, with that sense


that if you pay your bills on time and don’t max out your credit limits, your scores should be pretty high.


SANTA ROSA, CA. ~ What is your credit worth? Whether you are purchasing a home, financing a car or applying for a credit card, your credit score could cost you a lot. Your credit score is the driving force that cred- itors will use to determine your credit worthiness and the final interest rate you will pay. The higher your interest the more you’re going to pay. So what’s your credit worth? Faster than a speeding com- puter, more powerful than the World Wide Web, each month your


personal information


(consumer uses, payment habits and any public records) are digitalized and compiled and summarized into a three digit number.


This number


weighs heavy on the outcome for you obtaining the lowest interest rate, landing the best employment or even renting that perfect house. Passed by Congress in 1971, Fair Credit Reporting Act (FCRA) and all of its amendments have been instrumental in protect- ing us from abuses of the Credit Reporting Agencies (CRA). These agencies con- sist of three bureaus: Equifax, Experian, and Transunion. The information the CRA compiles uses the Fair Isaac Corporation (FICO) scoring model.


generate a number between 300 and 850.


will be used to predict wheth- er or not you’re a good credit risk.


What is your FICO? This


is a moving number and with caution, we try to keep our scores high. Having your credit checked too often or


If you can't explain something in a few words, try fewer. ~Robert Brault


These bureaus then This number


The


rule of thumb is to keep your credit card balance to 1/3 of your limit, never be late on a payment, and only apply for credit if your need it. If you follow these simple rules you should be able to keep your credit score above 700. When lenders price out a loan for a home mortgage, they use a “risk base pricing” model to determine your final interest rate.


This matrix is


referred to as a Loan-Level- Pricing-Adjustment (LLPA). The matrix is set up with a columns and rows broken into credit score ranges. The


other columns are broken into loan-to-value ranges. As you may have guessed, the lower the credit score and the high- er the loan-to-value puts you at the highest pricing adjust- ments. These pricing adjust- ments end up either costing you dollars in origination fees or a higher interest rate. Either way a low credit score is going to cost you more. Being able to manage your credit well and understanding how your credit is viewed can make a huge difference in being able to leverage debts. When you leverage


your


debts properly, you can take advantage great deals and build the foundation for your future. If you have questions about your credit, we can schedule an appointment to review your credit to see if it is being reported correct- ly. There may be things you could do to improve on it.


HOUSE Celebrate St. Patty’s Day With us!


Carrots and all the Fixings! And, of course great mustards!


Final Edition Bar & Grill


Happy Hour 4:30-6:30


We’re Upbeat Here!


412 Larkfi eld Center • 707-542-1416 UPBEAT TIMES • March 2014 • 15


March 17th @ 1P.M. Corn Beef & Cabbage, Potatoes,


LETTERS Of Appreciation


Hi Paul,


Thank you so very much for the story about Paws for


Love...we truly appreciate it. Attendance was down due to the weather, but we still had a full house...the people in Sonoma County are special folks who love their animals and will paddle to Paws for Love if they have to!


We earn all of our proceeds that one night -- and now we are able to help so many more needy animals in 2014. Thank you for being a part of our success.


Best, Ellyn Jaques Boone Executive Director


Paws for Love Foundation


JOKES & Humor # 6 Mrs. Peterson phoned the repairman because her dish- washer quit working. He couldn't accommodate her with an "after- hours" appointment and since she had to go to work, she told him, "I'll leave the key under the mat. Fix the dish washer, leave the bill on the counter, and I'll mail you a check. By the way, I have a large rottweiler inside named Killer; he won't bother you. I also have a parrot, and whatever you do, do not talk to the bird!" Well, sure enough the dog, Killer, totally ignored the repairman, but the whole time he was there, the parrot cursed, yelled, screamed, and about drove him crazy.


As he was ready to leave, he couldn't resist saying, "You're nuts bird, why don't you stop talking!?"


To which the bird replied, "Killer, get him!!!"


21 years or Older!


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