Learning the Benefits of No Cost Mortgages

key in front of house

At Altius Mortgage and our partners at Mortgage Ogden, it’s our mission to get you the best mortgage option for your situation. Our mortgage brokers are trained to spot the details that might make a certain type of mortgage or refinance more prudent for you and your family, and to guide you through every step of the process.

One of the mortgage types that often fits for many people is a no cost mortgage. This is a type of mortgage or refinance option where closing cost and fees are waived and instead rolled into monthly payments, allowing you to get out the door for much less in upfront costs. These are often great for people planning to move or flip a home within five years, and they hold several specific benefits. Let’s take a look.

Less Up Front

The absence of upfront closing costs and various fees means you need to bring less cash to the table. This is great for people who may have a high monthly income and enough funds to afford a solid payment, but not much liquid cash on hand for both a down payment and closing costs. Closing costs can run into the thousands for most mortgage situations, so this is a major benefit for many people.

Larger Homes

One of the primary benefits of this extra money is potential space in the home. No closing costs means you have more money available for the down payment and future monthly payments, which allows many people to get into a larger home than they had anticipated. It’s not uncommon for this lump sum to make the difference between a great home and a dream home.

Extra Necessities

No cost mortgages can often be perfect for many first-time homebuyers – people who often don’t have furniture or other accessories in the quantities truly needed for home ownership. Things like refrigerators, washers, dryers and dishwashers don’t come cheap, and if these are expenses you’re considering along with a mortgage, a no closing costs option could keep your finances in the proper order.

To learn more about no cost mortgages and when they might be right for you, or to find out about any of our other mortgage services, the brokers at Altius Mortgage and Mortgage Ogden are standing by.

Learning and Managing Credit Score Calculation Factors

credit score paper

No matter what mortgage area you’re looking into, credit score is going to be a huge factor no matter what. It’s one of the single largest factors in getting you the best mortgage rate, and also in which kinds of advantageous mortgages you’ll be eligible for.

At Altius Mortgage and our partners at Mortgage Ogden, we’ll help you get the best possible rate and mortgage given your credit score and other factors. Here are the main factors that go into determining your credit score, and how you can impact them.

Payment Timing

Credit bureaus care a lot about on-time payments, and they track the percentage of time bill payments are made on time compared with how often they’re late. This factor carries a heavy weight within your credit score, so set the proper reminders to make sure you pay all your bills on time each month.

Card Utilization Rate

Having credit is good, but bureaus want to see that you’re actively using it and paying it back as well. This is where card utilization rate comes in. It’s a simple ratio comparing your available credit to your credit currently being used – just divide your open credit balances by your total open limit. Credit bureaus want to see regular activity, and a willingness to use open credit.

Derogatory Marks

Things like bankruptcies, collections, foreclosures and liens all will count heavily against your credit score. Some of these can take up to a decade to clear from your credit score, and they’re big red flags for many lenders. Avoid these situations at all costs.

Average Age and Number of Active Accounts

Average age is simply a broad average of the lifespan of all open credit avenues, including credit cards, mortgages, and other forms of loans. Bureaus want to see a long history, suggesting that you’ve successfully managed your debt over time. As an example, something you never want to do near a time when your credit may be checked is close an old credit card – this will decrease the average length of your open credit lines, and lower your score.

Down similar lines, the number of active accounts open makes a difference. If you hold several open accounts and are making the proper payments on all of them, this will make lenders more confident. This is one of the smaller overall factors, though, so don’t start opening a bunch of new accounts just to raise score here.

For more information on the way credit bureaus calculate credit score, or on any of our mortgage company services, speak to the brokers at Altius Mortgage or Mortgage Ogden.