Points and 30 Year Mortgage Rates

Looking for a Credit Card for Christmas Shopping? Before you submit a credit card application, first review the main points which will help you choose the right credit card for your needs.

What Charges You'll Make - If you're going to use the credit card mainly for booking airline reservations and hotels, it might be best for you to get a travel credit card that offers sky miles and hotel points or cashback. If this will be an emergency credit card only, then your main concern may be for a low interest rate credit card with low fees.

When You'll Repay Charges - Will you pay off credit card charges in full every month, or will you carry a balance month to month? If you're going to carry a balance, you want the lowest possible interest rate as well as a low introductory rate. But if you'll payoff balances in full every month, then interest rate really doesn't matter so no annual fee and/or a long grace period would be a bigger concern. If you're going to carry a balance, be concerned about how the finance charge is calculated. The most common method is the Average Daily Balance, which means that the daily balances are added together and then divided by the number of days in the billing cycle. Stay away from credit cards that compute the balance using two billing cycles, as this method costs more money in financing fees.

What Amount You'll Charge - If you're going to use the credit card for all your monthly expenses, then you need a card that has a high credit limit and a high cashback percentage.

More info about Interest Rates, Credit Limits, Incentives, Fees and Penalties

Interest Rates - The interest rate (Annual Percentage Rate) APR can either be a fixed rate or a variable rate that is tied to another financial indicator, most commonly the prime rate. With a fixed rate credit card you know what the interest rate will be every month, whereas a card with a variable rate can fluctuate. Of course, even the interest of a fixed rate card can change based on certain events, such as paying your credit card bill late, exceeding your limit, or simply because the credit card issuer decides to change it after providing you ample advance notice.

Credit Limit - This is the amount of money the credit card company will let you charge to the card. This amount varies depending upon the card offer and your credit history. Be sure to get a credit card with an ample limit, because getting close to your max can hurt your credit score. Just remember that you don't have to max out your limit just because it's available.

Incentives - To compete for and to gain customers, many credit card companies offer rewards. Even if you normally use cash, why not use your credit card and then use the cash to make the payment during the grace period? You still won't pay interest and meanwhile you'll rack-up rewards. A credit card with 5% cashback will earn you $5 for every $100 charged. If your total bills come to $2,000 per month, you'll earn a free $100 every month. Look for a rewards program that you'll use and which offers flexibility, such as cashback or travel.

Fees and Penalties - Compare common charges such as late fees, overlimit fees, balance transfers, cash advances, and for making payments by telephone. Regarding balance transfers, look for credit card offers with no transaction fees and zero percent interest for at least 12 months.

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Points and 30 Year Mortgage Rates

By Credit Federal | Published 06/13/2009

In the last six months, mortgage rates have been low on 30 year loans. This week the rates rose to around 6%. This rise could stall mortgage refinancing, as consumers may decide to wait till rates are lower.

Home purchase loans may not be affected by this recent increase. Fifteen year fixed rate mortgages, rates on five year mortgages, and adjustable rate mortgages all increased. These rate increases do not include points nor add-on fees.

Most everyone has heard about mortgage points. Mortgage points are certain charges that must be paid in order to get a mortgage on a home. Every mortgage point is a fee based on one percent of the total amount of the loan.

Borrowers need to be aware that there are two different kinds of mortgage points. There are discount points and origination points. Lenders do not all charge the same amount for these different types of points. Discount points is the amount of money paid to a lender to obtain a loan at a specific interest rate. It is like pre-paid interest on a loan that a borrower takes out for a new home. Each point equals to 1% of the total principal amount of the loan.

If a loan was $100,000, one point is worth $1,000. Each point will lower the interest rate by some amount. Borrowers have to decide how many points to purchase and there is a limit of about four points.

Discount points are paid at closing. Buyers may not pay points on FHA or VA guaranteed loans but sellers can. Most mortgages require either the buyer or the seller to pay the points. However, the two parties could half the payment among themselves.

The good thing about mortgage points is that they could be a tax deduction (check with your accountant). When a mortgage is closed, usually there is a requirement for the borrower to pay a percentage of the loan to the lender. A 30-year fixed rate mortgage could have a one point origination fee. If this is the case, you would need to pay 1% of the principle to the lender when the money is obtained.

If for example, you were purchasing a $100,000 house, you would have to pay $1000 to the lender on closing. The more points paid up front, the cheaper it is to own the home.

There are many online calculators to use to calculate mortgage loans. It is a good idea to calculate monthly payments. Use an amortization calculator to get a clear calculation of what will be saved with and without points.

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Points and 30 Year Mortgage Rates - by <a href=http://creditfederal.com>CreditFederal.com</a> In the last six months, mortgage rates have been low on 30 year loans. This week the rates rose to around 6%. This rise could stall <a target='_top' href="http://creditfederal.com/mortgage-refinancing.html">mortgage refinancing</a>, as consumers may decide to wait till rates are lower. <a target='_top' href="http://creditfederal.com/home-loan.html">Home purchase loans</a> may not be affected by this recent increase. Fifteen year fixed rate mortgages, rates on five year mortgages, and adjustable rate mortgages all increased. These rate increases do not include points nor add-on fees. Most everyone has heard about mortgage points. Mortgage points are certain charges that must be paid in order to get a mortgage on a home. Every mortgage point is a fee based on one percent of the total amount of the loan. Borrowers need to be aware that there are two different kinds of mortgage points. There are discount points and origination points. Lenders do not all charge the same amount for these different types of points. Discount points is the amount of money paid to a lender to obtain a loan at a specific interest rate. It is like pre-paid interest on a loan that a borrower takes out for a new home. Each point equals to 1% of the total principal amount of the loan. If a loan was $100,000, one point is worth $1,000. Each point will lower the interest rate by some amount. Borrowers have to decide how many points to purchase and there is a limit of about four points. Discount points are paid at closing. Buyers may not pay points on FHA or VA guaranteed loans but sellers can. Most mortgages require either the buyer or the seller to pay the points. However, the two parties could half the payment among themselves. The good thing about mortgage points is that they could be a tax deduction (check with your accountant). When a mortgage is closed, usually there is a requirement for the borrower to pay a percentage of the loan to the lender. A 30-year fixed rate mortgage could have a one point origination fee. If this is the case, you would need to pay 1% of the principle to the lender when the money is obtained. If for example, you were purchasing a $100,000 house, you would have to pay $1000 to the lender on closing. The more points paid up front, the cheaper it is to own the home. There are many online calculators to use to calculate mortgage loans. It is a good idea to calculate monthly payments. Use an amortization calculator to get a clear calculation of what will be saved with and without points. This article provided courtesy of <a href=http://creditfederal.com target=_new>www.CreditFederal.com</a>, a personal credit resource of good or bad credit credit cards and loans.

Credit Tip: Need a high limit for Christmas credit card charges? If you have bad credit, consider a personal loan by refinancing your mortgage. Even if you have cash to buy Christmas presents, we recommend using a prepaid card to make purchases because it's safer than carrying cash.