If you have good overall credit but your credit score seems too low, take a careful look at the amount of money you owe on your revolving debt. If your credit cards at or above the maximum limit may harm your credit score.

It may not be necessary to pay off your credit cards. Paying down the balance or increasing the maximum limit may result in an improved credit score.

One common mistake is closing a paid credit card. Leave the credit card open. The relationship to your maximum credit and balance owed will raise your score.

If you close the account, the above effect will be negated. This may actually result in a lower credit score.

Click Here for my Free Credit Repair & Credit Score Improvement Handbook. 4 Easy Steps for Fast Results (7 pages).

If you need additional mortgage or credit related help, contact me. My assistance is without charge (free).

Call me at 732-207-8434 or email mark@njfhapro.com

Sincerely,

Mark Robinson

NMLS License #198843

Licensed by the New Jersey Dept. of Banking

The current calculation for up front mortgage insurance (UFMIP) is 1% of the loan amount. It is financed within the loan.

Ex: A $100,000 loan (base loan amount) will have UFMIP of $1,000. The new loan amount will be $101,000.

The monthly mortgage is currently 1.15% of the base loan amount. The calculation is as follows:

Base Loan Amount: $100,000 x 1.15% = $1,150/12 = $95.83.

The monthly mortgage insurance does expire. It will last for at least 5 years or 22% equity, whichever comes last.

*Calculations are based upon a 30 year amortization and loan to values >95%. Mortgage insurance will be lower on shorter terms and lower loan to values.