Mortgage Applications

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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Mortgage Applications

By Credit Federal | Published 02/22/2006

Mortgage Purchase Applications Up While Refinances Down In Latest Survey

The Market Composite Index, a measure of mortgage loan application volume, was 578.5, an increase of 0.8 percent on a seasonally adjusted basis from 574.1 one week earlier. On an unadjusted basis, the Index increased 3.4 percent compared with the previous week but was down 20 percent compared with the same week one year earlier.
The seasonally-adjusted Purchase Index increased by 4.3 percent to 408.7 from 391.7 the previous week whereas the Refinance Index decreased by 4.0 percent to 1571.4 from 1636.7 one week earlier. Other seasonally adjusted index activity includes the Conventional Index, which increased 0.9 percent to 855.8 from 847.8 the previous week, and the Government Index, which decreased 1.4 percent to 116.2 from 117.8 the previous week.

The four week moving average for the seasonally-adjusted Market Index is down 3.3 percent to 599.7 from 620.2. The four week moving average is down 3.8 percent to 415.3 from 431.6 for the Purchase Index, while this average is down 2.9 percent to 1676.6 from 1727.2 for the Refinance Index.

The refinance share of mortgage activity decreased to 38.2 percent of total applications from 41.2 percent the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 29.1 percent of total applications from 29.6 percent the previous week.

The average contract interest rate for 30-year fixed-rate mortgages decreased to 6.22 percent from 6.25 percent, with points decreasing to 1.23 from 1.34 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans.

The average contract interest rate for 15-year fixed-rate mortgages decreased to 5.87 percent from 5.92 percent, with points increasing to 1.21 from 1.17 (including the origination fee) for 80 percent LTV loans.

The average contract interest rate for one-year ARMs increased to 5.60 percent from 5.52 percent, with points decreasing to 0.97 from 0.99 (including the origination fee) for 80 percent LTV loans.

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Mortgage Applications - by <a href=http://creditfederal.com>CreditFederal.com</a> Mortgage Purchase Applications Up While Refinances Down In Latest Survey The Market Composite Index, a measure of <a href="http://creditfederal.com/mortgage-loan.html">mortgage loan</a> application volume, was 578.5, an increase of 0.8 percent on a seasonally adjusted basis from 574.1 one week earlier. On an unadjusted basis, the Index increased 3.4 percent compared with the previous week but was down 20 percent compared with the same week one year earlier. The seasonally-adjusted Purchase Index increased by 4.3 percent to 408.7 from 391.7 the previous week whereas the Refinance Index decreased by 4.0 percent to 1571.4 from 1636.7 one week earlier. Other seasonally adjusted index activity includes the Conventional Index, which increased 0.9 percent to 855.8 from 847.8 the previous week, and the Government Index, which decreased 1.4 percent to 116.2 from 117.8 the previous week. The four week moving average for the seasonally-adjusted Market Index is down 3.3 percent to 599.7 from 620.2. The four week moving average is down 3.8 percent to 415.3 from 431.6 for the Purchase Index, while this average is down 2.9 percent to 1676.6 from 1727.2 for the Refinance Index. The refinance share of mortgage activity decreased to 38.2 percent of total applications from 41.2 percent the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 29.1 percent of total applications from 29.6 percent the previous week. The average contract interest rate for 30-year fixed-rate mortgages decreased to 6.22 percent from 6.25 percent, with points decreasing to 1.23 from 1.34 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans. The average contract interest rate for 15-year fixed-rate mortgages decreased to 5.87 percent from 5.92 percent, with points increasing to 1.21 from 1.17 (including the origination fee) for 80 percent LTV loans. The average contract interest rate for one-year ARMs increased to 5.60 percent from 5.52 percent, with points decreasing to 0.97 from 0.99 (including the origination fee) for 80 percent LTV loans. 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.