The Credit Robbers - FICO® Score, Your Credit Rating, and Borrowing Against Your House
Credit Repair + Debt Elimination = 800+ FICO® Score Credit Report
FICO® Score, Your Credit Rating, and Borrowing Against Your House
There are pro’s and con’s for borrowing against your home and they all need to be taken into consideration before you proceed with any additional borrowing.
On the one hand, the money you can borrow on your home will probably be of a lower interest rate than most other forms of loans and this can help you to reduce your monthly repayments by using the house money for clearing more expensive debt.
With the ability to spread the term of repayment over a much longer period you can generally make quite an impact on reducing your monthly outgoings and improving your FICO® score, credit report, and credit rating.
Use your budget to determine how much you are paying on all your outstanding debt and then calculate what the payments would be if they were all consolidated under the one loan against your house. This will show whether that is the best decision to make to help you manage your finances more easily.
When house prices are rising, you will have increasing equity in your home that will allow you to borrow more against it, since the time you originally arranged your mortgage.
The downside of borrowing against your home is where you are already struggling to make your home mortgage payments and by borrowing more you will be putting your house on the line and risk losing it. You certainly don’t want the banks to seek foreclosure on your loan. If that looks eminent then it would be unwise to increase your borrowings.
If you calculate that you will not be able to make the additional mortgage payments then it is better to sell off other items that you have borrowed against to reduce debt elsewhere rather than risk losing your home thru foreclosure.
It might also be necessary to consider downsizing on your home and buying something of lower value so you can reduce your mortgage accordingly until you get your feet back on the ground.
Your home is your most valuable asset and you should always do all you possibly can to retain ownership of it and avoid foreclosure.
By maintaining your home through timely payments is a huge step in maintaining your credit rating and keeping your FICO® score on your credit report at the highest number possible.
Dr. Robert Miller, PHD
Investigations Analyst
www.TheCreditRobbers.com
Contact Us: Send a FormMail Message
Tags: credit, Credit Rating, Credit Repair, Credit Report, Credit Score, Debt, Debt Recovery, FICO, FICO Score