So how does this whole credit score thing work??

[Kenazo]

So my wife and I were shopping for a mortgage yesterday and we saw our credit scores for the first time. Turns out hers is 752 and mine is 712. What the heck do those numbers mean, and are they any good?

 

[royaldank]

Anything over 700 is fine. 720 has been a magical number in the past, but being at 712 is good enough. With her on the loan, you'll have no problem getting the best rate possible.

It also means you can get the deals they advertise on TV for cars and such.

Keep paying bills on time and you're good to go credit wise. Good job.

 

[Kenazo]

Interesting to know. 🙂

We were offered one variable rate loan a 0.55% below prime. How and why to banks offer such low rates? The interest on the mortgage will be less right now than my savings account pays. 🙂 Then of course I have to gamble that rates are going to stay low.

 

[royaldank]

Originally posted by: Kenazo
Interesting to know. 🙂

We were offered one variable rate loan a 0.55% below prime. How and why to banks offer such low rates? The interest on the mortgage will be less right now than my savings account pays. 🙂 Then of course I have to gamble that rates are going to stay low.

We are at all time lows in financing right now. The last couple of years have been great for buying homes. Obviously, it stands to reason that rates will be going up in the future. An adjustable rate will likely rise. That said, if you don't plan to spend but a few years in a house (b/c of job, starter home, etc.) then getting an ARM can be great. I got one a year and a half ago starting at 3.5%. In January, it went up a just a bit, but not the full possible amount it could have. I plan to sell in another 2 or 3 years. I'm free to refi any time I wish as well.