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Posts Tagged ‘Mortgages’

Understanding FICO

The basis of most mortgage lending is credit scoring.  In general, the higher a person’s credit score, the lower his offered mortgage interest rate.
Despite the many credit scoring models in use today, however, just 3 are relevant to American homeowners:

The Equifax BEACON® score
The Experian Fair Isaac Risk Model
The TransUnion EMPIRICA®

Generically, these scoring models generate [...]

Fed cuts rate by 0.5%…why didn’t mortgage rates go down, too?

In response to the slowing pace of economic activity and intensified turmoil in financial markets, the Federal Reserve cut the its key rate by 50 basis points, or 0.5%, last week ahead of its regularly scheduled meeting at the end of October. The action was globally orchestrated with banks around the world, including the Bank [...]