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Learning More About Savings

Hello, I’m Miranda West. I would like to use this site to help others build an adequate savings account. Most people do not have enough money in their savings accounts to cover emergency repairs or other expenses that unexpectedly arise. Without a savings account, you may be at the mercy of your employer, which can have a negative effect on upward mobility. I will cover popular savings techniques you can use to start building your nest egg. I will also talk about ways to reduce spending so you can dedicate more to your savings. Thank you for coming to my website.


Learning More About Savings

How And Why Your Credit Score Affects The Interest Rate You Get On A Mortgage

by Ralph Ford

Protecting, building, preserving, and improving your credit score is the best thing you can do if you want to qualify for the best interest rate on a mortgage loan. This reality is primarily because interest rates are highly based on a person's credit score. A person's credit score reveals a person's creditworthiness, and here are some of the top reasons lenders base interest rates on credit scores. This is something you should understand if you plan on buying a house in the future.

People with Good Credit Pay Their Bills on Time

A person's credit score reflects how reliable a person is with paying their bills. For a person to have a high credit score, he or she will have to be a person who always pays his or her bills on time. Paying bills on time over a period of years takes responsibility and dedication, and it proves that a person is creditworthy. Because of this, a person with a high credit score will most likely get a really good interest rate on a mortgage loan. 

People with Good Credit are Less of a Risk

When lenders issue mortgage loans, one of the main things they weigh is the risks involved with the loan. A person considered highly risky will receive a higher interest rate on a loan simply because there is a greater risk that he or she will not pay the mortgage payments on time. Mortgage rates in your area will also vary from the national average due to local market conditions. A person with a high credit score, on the other hand, is a person that a lender views as a low-risk borrower. This person has proved that he or she consistently pays things on time. Because of this, the lender will have fewer worries about whether or not the person will pay on time if issued a mortgage loan.

People with Good Credit Like to Protect Their Credit

A person who has great credit is typically someone who cares about his or her credit score and will take extra measures to protect it. It really only takes messing up once or twice to significantly harm your credit score, and most people realize this. Because of this, people with good credit will typically do everything they can do to avoid having anything negative placed on their credit reports.

If you currently have excellent credit, you will probably qualify for a low interest rate on a mortgage. If your credit is less than excellent, you may want to spend some time finding ways to improve it before you apply for a loan with a mortgage lender.