Interesting article with good perspective on your credit score.

[HHM]

Credit Score Hysteria, A Disease Far Worse Than Bankruptcy

[StartingOver08]

"If you have money, you don’t need credit"


Thank you for posting that article HHM. I think the above says it all.

[NanaOf11]

Our Mortgage will double in two years.

We have money (Good retirement) but not enough ($200K) to pay cash for our home!

We just want the best score possable, to get the best interest rate possable to refi. at that time.

HOW is this so bad?

[AMISLANDER]

Our Mortgage will double in two years.

We have money (Good retirement) but not enough ($200K) to pay cash for our home!

We just want the best score possable, to get the best interest rate possable to refi. at that time.

HOW is this so bad?

Because it's not just all about your credit score. Banks aren't lending to people with top scores. It's a crap shoot. Don't worry so much; even the government can't pay their bills.

[HHM]

Our Mortgage will double in two years.

We have money (Good retirement) but not enough ($200K) to pay cash for our home!

We just want the best score possable, to get the best interest rate possable to refi. at that time.

HOW is this so bad?

It depends. The underlying problem is that you are in a bad mortgage. Refinancing that mortgage is "not the only option". If your mortgage is going to double; maybe consider selling or dumping the house. It is actually easier to buy than it is to refi. The problem, "wait for it" is that you probably bought too much house. If you refi'd today into a 30 year fixed at 5.25%, would that increase or decrease your existing mortgage, could you afford that payment (go to www.bankrate.com to calculate). How many years are you to retirement?

If your home does not have positive equity today, it won't have positive equity in 2 years. If the home does not have positive equity, you can forget about refi regardless of your credit score.

The article seems to be directed at those with lower credit scores, a person with a low credit score and those with good scores but are financially drowning in debt and needs to identify the underlying cause and address that cause.