Everything you need to know 2 have outstanding credit..

[Bigpipn]

Quote from shadowtrader:

Thank you for the information.

I was under the impression that too many active and inactive cards were detrimental, and should be closed.

That is what it seems, but think of it like this. If you have all this available credit yet you are responsible enough to not use it, you must be a low default risk and thus you score higher.

 

[Bigpipn]

Quote from clacy:

Thanks that is all good information. I happen to have very good credit but I do have a question about how mortgage rates are calculated.

Obviously the fed will be lowering soon and probably for some time into the future. Since I purchased my home 2.5 yrs ago, mortgage rates have come down and I'm trying to determine if I should refi or wait until there are even more attractive rates. So I guess that's my question. Will mortgage rates continue to fall for the immediate future?

Currently, I can take a 30yr to a 20 yr and only see a slight increase (<10%) on my monthly payment which is attractive to me.


Thanks in advance.

Remember there's fed's rate, then the banks have to make a profit too now. I do think that mortgage rates will lower but they will lag behind quite a bit due to the tremendous losses they are writing off (and will continue to writeoff on CCs). IOW spreads will actually widen temporarily.

The equity in your house will absorb the closing costs and thus your balance will increase on a refi. Remember the first 5 years of a mortgage is mostly interest. If you can refi to under 5.5% and you're worried about the compounded interest, go ahead with the refi but pay cash for closing costs.

Inflation is so high just keep your payment lower and invest your money.