Learn the most important things you can do to get "credit ready". From paying your bills on time to paying down your level of debt, these are tried and true practices that can pay big dividends.
Learn how the information in your credit report is "weighted" to help determine your credit score. By looking at your credit the way a lender does, you can take steps to improve the "credit snapshot" you present to lenders.
Your credit report changes on an on-going basis. To make sure everything is accurate and to get the credit you deserve, it is recommended that you monitor key changes to your credit report. Monitoring your credit can also be your "first line of defense" against identity theft.
Loan loans with repayment terms of 15, 20, or 30 years. With a "fixed rate" of interest, payments will be predictable as they remain the same for the life of the loan. The shorter loan terms will normally provide lower interest rates.
The advantages of Fixed Rate Mortgages are:
Interest rates that don't rise
Payments (for principal and interest) that remain the same
Protection in the event that market interest rates go up
The disadvantages of Fixed Rate Mortgages are:
Higher initial interest rate than adjustable rate loans (see ARMs)
Overall higher interest costs over the life of a loan should market interest rates decline.
The Bottom Line: Fixed Rates Loans are generally more desirable when low interest rates can be "locked in" ahead of likely market interest rate increases. Fixed Rate loans offer the greatest benefits for borrowers who lock in low rates AND plan to remain in their home for a long period of time, as variable rate loans.
