High credit scores will mean higher mortgage rates for homebuyers under new federal rule

#2
#2
For some odd reason this really does not surprise me in this bassackwards world we live in. Right is wrong, wrong is right. Now let's punish those people who have worked hard to always be responsible and pay their bills on time and know how to manage their finances. It is absolutely insane to think that a person with a score of around 650 will be rewarded and have to pay less then those of us with a score in the 800s. Whats next? When are they going to start labeling fat people as the most healthy individuals with the ideal weight and those of us under 200 lbs are malnourished?
 
  • Like
Reactions: OrangeBoro
#5
#5
It's not exactly a correct interpretation.

People with really high scores see no change, people with decent to highish scores see a fee increase and people with lower scores see a bit of a fee reduction though they still pay higher fees than the decent to highish group.
 
  • Like
Reactions: 05_never_again
#6
#6
VolinWayne said:
For some odd reason this really does not surprise me in this bassackwards world we live in. Right is wrong, wrong is right. Now let's punish those people who have worked hard to always be responsible and pay their bills on time and know how to manage their finances. It is absolutely insane to think that a person with a score of around 650 will be rewarded and have to pay less then those of us with a score in the 800s. Whats next? When are they going to start labeling fat people as the most healthy individuals with the ideal weight and those of us under 200 lbs are malnourished?
Click to expand...
This is an element to mortgages which was already in place. Biden simply increased the percentage.
 
  • Like
Reactions: 82_VOL_83
#8
#8
VolinWayne said:
For some odd reason this really does not surprise me in this bassackwards world we live in. Right is wrong, wrong is right. Now let's punish those people who have worked hard to always be responsible and pay their bills on time and know how to manage their finances. It is absolutely insane to think that a person with a score of around 650 will be rewarded and have to pay less then those of us with a score in the 800s. Whats next? When are they going to start labeling fat people as the most healthy individuals with the ideal weight and those of us under 200 lbs are malnourished?
Click to expand...

If you are in the 800s or even the mid to upper 700s this doesn't apply to you.

In another thread about this I posted the new tables. The increases happen for mid-tier credit people (680ish) and the reduction happens for lower than that though these people still face higher fees than anyone else.
 
  • Like
Reactions: tntar heel, VolinWayne, McDad and 1 other person
#9
#9
VolinWayne said:
For some odd reason this really does not surprise me in this bassackwards world we live in. Right is wrong, wrong is right. Now let's punish those people who have worked hard to always be responsible and pay their bills on time and know how to manage their finances. It is absolutely insane to think that a person with a score of around 650 will be rewarded and have to pay less then those of us with a score in the 800s. Whats next? When are they going to start labeling fat people as the most healthy individuals with the ideal weight and those of us under 200 lbs are malnourished?
Click to expand...
Try this one on for size.
I own my home outright. I owe nothing to anyone
I’m self employed with decent savings built up and never had a single late payment on anything.

My credit score….670.


lol
 
  • Like
Reactions: hog88, tntar heel, VolinWayne and 2 others
#10
#10
volinbham said:
If you are in the 800s or even the mid to upper 700s this doesn't apply to you.

In another thread about this I posted the new tables. The increases happen for mid-tier credit people (680ish) and the reduction happens for lower than that though these people still face higher fees than anyone else.
Click to expand...
Aces.
Edit: That means awesome in case there was a question
 
  • Like
Reactions: StarRaider
#11
#11
Orangeslice13 said:
Aces.
Edit: That means awesome in case there was a question
Click to expand...
c0673813f8491a8ebb5dd5a6fb1a9ed8--stephen-root-fargo-tv-show.jpg
 
  • Like
Reactions: Orangeslice13
#13
#13
Orangeslice13 said:
Try this one on for size.
I own my home outright. I owe nothing to anyone
I’m self employed with decent savings built up and never had a single late payment on anything.

My credit score….670.


lol
Click to expand...
You described my situation almost exactly except my rating is far higher. Must be the self employed thing...
 
  • Like
Reactions: Orangeslice13
#14
#14
Orangeslice13 said:
Try this one on for size.
I own my home outright. I owe nothing to anyone
I’m self employed with decent savings built up and never had a single late payment on anything.

My credit score….670.


lol
Click to expand...

The bolded is the key. You must have some line reporting to a bureau if you're getting any credit score at all. If anyone goes completely debt free with no active lines for a few months, their scores will decrease and disappear. Employment and assets do not affect credit scores to my knowledge.
 
  • Like
Reactions: Orangeslice13
#15
#15
Orangeslice13 said:
Try this one on for size.
I own my home outright. I owe nothing to anyone
I’m self employed with decent savings built up and never had a single late payment on anything.

My credit score….670.


lol
Click to expand...


Haha yeah that's kind of crazy....we paid off our home mortgage a few years ago and I kept checking my score thinking maybe I'd crack 840. Let's just say I was very confused when I got a notice saying my score had changed but it had dropped 5 points because an account had closed🤨....
Funny story about my wife. We wanted to have her name on the mortgage when we built our house 15 years ago and she had zero credit so we got her a credit card. After 3 months our banker called and said "hey your wife still had no credit". Come to find out she was using her credit card to make a purchase and then as soon as she got home she would get online and transfer money from her account to pay off the credit card lol.
 
Last edited:
  • Like
Reactions: dovervolz
#16
#16
VolinWayne said:
Haha yeah that's kind of crazy....we paid off our home mortgage a few years ago and I kept checking my score thinking maybe I'd crack 840. Let's just say I was very confused when I got a notice saying my score had changed but it had dropped 5 points because an account had closed🤨....
Funny story about my wife. We wanted to have her name on the mortgage when we built our house 115 years ago and she had zero credit so we got her a credit card. After 3 months our banker called and said "hey your wife still had no credit". Come to find out she was using her credit card to make a purchase and then as soon as she got home she would get online and transfer money from her account to pay off the credit card lol.
Click to expand...
It really is a scam how credit scores are actually accrued.
 
  • Like
Reactions: ButchPlz, hog88 and hUTch2002
#17
#17
Orangeslice13 said:
Try this one on for size.
I own my home outright. I owe nothing to anyone
I’m self employed with decent savings built up and never had a single late payment on anything.

My credit score….670.


lol
Click to expand...
It’s their way of trying to force you into the system and get you on the grid. You know, “they”.
 
#18
#18
Orangeslice13 said:
Try this one on for size.
I own my home outright. I owe nothing to anyone
I’m self employed with decent savings built up and never had a single late payment on anything.

My credit score….670.


lol
Click to expand...

It is silly how not utilizing credit hurts your score.
 
#19
#19
My situation is opposite.
I only have one CC that is paid off in full every month. Might spend $200-400 on it a month and every time I have a balance that isn't even due yet I get a notification that my score dropped a few points. Once I pay it it goes back up. No other debt. Silly.
 
#20
#20
VolinWayne said:
Haha yeah that's kind of crazy....we paid off our home mortgage a few years ago and I kept checking my score thinking maybe I'd crack 840. Let's just say I was very confused when I got a notice saying my score had changed but it had dropped 5 points because an account had closed🤨....
Funny story about my wife. We wanted to have her name on the mortgage when we built our house 115 years ago and she had zero credit so we got her a credit card. After 3 months our banker called and said "hey your wife still had no credit". Come to find out she was using her credit card to make a purchase and then as soon as she got home she would get online and transfer money from her account to pay off the credit card lol.
Click to expand...
I'm going to go out on a limb and assume that's a typo. You are your wife did NOT build a house 115 years ago.
 
  • Like
Reactions: VolinWayne
#21
#21
LouderVol said:
It really is a scam how credit scores are actually accrued.
Click to expand...
I will say that I don't agree with the fact that "credit mix" is a component of credit scores, particularly if someone doesn't have a mortgage in their credit mix because they have paid it off.
 
#22
#22
Orangeburst said:
My situation is opposite.
I only have one CC that is paid off in full every month. Might spend $200-400 on it a month and every time I have a balance that isn't even due yet I get a notification that my score dropped a few points. Once I pay it it goes back up. No other debt. Silly.
Click to expand...
You're likely getting dinged on your credit score based on your credit utilization ratio. You'd be better off getting another credit card or two (over a couple years - not all at once) to increase your amount of total available credit, even if you don't use them. Then, your credit utilization ratio will be lower.
 
#23
#23
Vol423 said:
You're likely getting dinged on your credit score based on your credit utilization ratio. You'd be better off getting another credit card or two (over a couple years - not all at once) to increase your amount of total available credit, even if you don't use them. Then, your credit utilization ratio will be lower.
Click to expand...

My credit is excellent already
 
#25
#25
Vol423 said:
Fair enough. Just trying to offer advice if you were upset than your credit rating is taking a temporary dip.
Click to expand...

Who said I was upset?

Just pointing out how silly it is and to counter to what others are saying.
 
New posts
You must log in or register to reply here.
Advertisement

Back
Top