Should I refinance my mortgage now?

Consider this if you have a great credit score:

Refinance your mortgage if your interest rates is 4% or higher. The savings are tremendous!

1. Mortgage of 100,000 10% for 30 years =$215,000 (total amount repaid)
2. Mortgage of 100,000 5% for 30 years =$177,098 (total amount repaid)
3. Mortgage of 100,000 2% for 30 years = $133,063.01 (total amount repaid)

*Beware

Adjustable rate mortgages payments increase when interest rates increases. Home equity loans – a home equity line of credit (HELOC) late penalties are often more harsh than a regular mortgage. *Use an attorney for large financial transactions (costs $200-500) to prevent issues with predatory loans and lenders. Banks are always trying to find new ways to make money – and may not always be in your best interest.

Read more

What are the 4 components of a credit mix?

Installment loans = auto, student, and mortgage loans

Charge cards = Bank credit cards

Service credit = Gas station credit cards

Revolving credit = Department store credit cards

Using these four components and making payments on time will improve your credit score!

Read more

What is your credit score based on?

• 35% = Payment history (longer is better)
• 30%= Credit utilization
• 15% = Credit history length (longer is better)
• 10% = Credit mix (revolving credit, charge cards, service credit, installment credit)
• 10% = New credit (avoid purchasing a car, house, add new credit periodically and pace yourself)

Read more

Your Credit report can be compared to your report card – it gives a detail analysis of how you are doing. Your FICO score can be compare to an A, B, or C grading system. Credit score values:

A= 800+ is excellent (1% chance of making late payments)

B= 740-799 – very good

C= 670-739 – good

D= 580-699 – fair

F+ 579 and below is poor (61% chance of being late)

Read more

Having Good Credit has many benefits

If you have good credit…

• Don’t have to put a down payment for a cellphone, gas, electric or cable bill as an example.
• Pay lower interest rates on loans (pay less over life of the loan)
• Lower insurance premiums
• Lower down payment on large purchases
  • Bad credit will always cost you more. Down payment for utilities

Think about it:

If your income is low and you have good credit it’s better than earning a high income with bad credit

The best scenario is: good credit and good income

Read more

Do you know the difference between a charge card vs. a credit card?

If you have a charge card pay you must pay it in full at the end of the month – you do not have a credit line or a credit limit.

A credit card offers a credit limit and an extended time frame to pay each month. Know the interest rate for your credit card use and cash advances.

Read more

A licensed driver must know the rules of the road…A credit cardholder needs to follow simply rules.

Let’s explore the simple rules for using a credit card

• Avoid the minimum payment
• Don’t sign up for every credit card offer (you only need 2 or 3 credit cards)
• Understand how your credit card works (cycle end dates, late fees, interest rates)
• Pay you credit card bill on time (never miss a payment)
• Pay you credit card bill in full if possible
• Keep your balance low
• Monitor your spending each month
• Earn rewards (cash rewards can be used toward the balance, or deposit in your bank account)
• Don’t use your credit card to pay household bills, cars, student loans, retail therapy, medical bills, a night on the town, big ticket items such furniture or appliances, items on sale, unsecured purchases, cc payments.
• Report a lost or stolen credit card immediately

Read more

Your Credit

Is part of your financial power!

Credit is a tool to help you to get the things you need

and qualify for loans when you need them.

Have you reviewed your credit report? Visit www.annualcreditreport.com

Read more

Financial Survival

During COVID-19

Thursday, April 16, 2020

7:00pm – 8:00pm

Virtual session in Zoom, computer, phone or tablet required

Lost hours at work and have more with less? Don’t have a monthly budget?

Need help coping financially during COVID-19

This class is for you!

Email info@FECcoso.org or call (703) 704-6101

Read more

Virtual Class

How To Start Your New Business

Part One: The Business Plan

Thursday, April 9, 2020

6:00pm-7:30pm

Learn successful strategies to avoid early failure and ensure stability and growth!

           Register at FECSoCo.org or call (703) 704-6101

Read more