The APR is the final rate the lender charges you annually.  After adding on any loan fees that are involved and points that will be charged, the final rate will usually be higher than the prime interest rate.

 When applying for a mortgage, the lender must notify you about the APR within three days of receiving your application.  The APR may change before final settlement, but there are limits on how much it can change.

 So while shopping for a mortgage, make sure you know the annual percentage rate, as well as what you will have to pay for points, application fees and mortgage insurance.

 Being fully informed is the only way you will be able to make the best decision.

1. Pay your bills on time. Payment history accounts for roughly 35% of your score. So paying bills on time is the most important thing you can do. If you’re behind, get caught up and then stay current. If you’re struggling, contact your creditors to work out a payment schedule.

2. Increase the length of your credit history. It accounts for 15% of your score. Canceling an old card or getting a lot of new credit within a short time span can hurt your score because it lowers the average age of your accounts.

3. Keep credit card balances low. Credit utilization makes up 30% of your credit score. Try to keep the amount you borrow below 25% of your available credit. Even if you pay off your credit cards every month, the average balance will still impact your score.

4. Minimize new credit requests. They account for 10% of your credit score. Every time a potential lender asks for a copy of your credit report, an inquiry is recorded. If you will be applying for a loan in the near future, don’t apply for any new credit cards beforehand. You can also ask the three main credit reporting agencies-Experian, Equifax, and Trans-Union, to stop unsolicited credit offers.

5. Maintain different types of installment and revolving debt. About 10% of your score depends on the type of credit used. How you handle revolving credit (like credit cards) carries more weight than how you deal with installment debt (such as car loans & mortgages).

 Brian Ripp, CRS, GRI, Broker – your Bay Area Realtor www.BrianRipp.com serving Fremont, Newark, Union City & surrounding communities. Real Estate & Property Management.

Real Estate Market Weekly Update Webcast: http://realtytimes.com/REUv/BrianRipp

The program launched in March, and as of June 3 nearly $24 million in tax credit certificates already had been issued, according to the state’s Franchise Tax Board, leaving nearly $76 million in credit available.  Many applications still are in the pipeline awaiting approval.  If all of the submitted applications are approved, only $17.5 million would remain in the fund. 

 The California state legislature is considering adding another $200 million to the program.  However, securing approval may be difficult due to the state’s estimated $24 billion budget deficit.  A bill to extend the program already has won Assembly approval and now is awaiting activity in the state Senate.

Brian Ripp, CRS, GRI, Broker – your Bay Area Realtor

www.BrianRipp.com  serving Fremont, Newark, Union City & surrounding communities. Real Estate & Property Management.

Real Estate Market Weekly Update Webcast: http://realtytimes.com/REUv/BrianRipp

The law is expected to make lenders try harder to keep borrowers in their homes.

Loan companies must prove they tried to modify the delinquent loans before they can begin foreclosing.

But supporters acknowledge the California Foreclosure Prevention Act won’t stop thousands of foreclosures from eventually happening.

There have been more than 365,000 foreclosures in California since early 2007.

Brian Ripp, CRS, GRI, Broker – your Bay Area Realtor

www.BrianRipp.com serving Fremont, Newark, Union City & surrounding communities. Real Estate & Property Management.

Real Estate Market Weekly Update Webcast: http://realtytimes.com/REUv/BrianRipp

When a professional is required, however, you may need to borrow money to pay for the improvements. One financing option is cash-out refinancing.

Interest rates and the amount of your current mortgage balance will determine whether you can refinance with enough cash to cover a remodeling project and still retain affordable monthly payments.

As with any large project, you need to keep your goals in mind. If your main goal is to increase the value of your home with a renovation, you should first determine how much value each project will actually add. That way, you can decide how your money would be best spent to gain the most value.

Brian Ripp, CRS, GRI, Broker - your  Bay Area Realtor

www.BrianRipp.com   serving Fremont, Newark, Union City & surrounding communities. Real Estate & Property Management.