The short of the long is that the Federal Reserve is buying Mortgage Backed Securities. This, among many other factors, is keeping interest rates low. Low interest rates have caused many people, for good reason, to consider refinancing their home loan to lower their monthly payments.
I had a conversation with a “rate shopper” on Friday and wanted to share their concerns about the affect lenders pulling their credit would have on their credit scores.
This was taken from myfico.com.
Looking for a mortgage may cause multiple lenders to request your credit report, even though you’re only looking for one loan. To compensate for this, the score ignores all mortgage inquiries made in the 30 days prior to scoring. So if you find a loan within 30 days, the inquiries won’t affect your score while you’re rate shopping. In addition, the score looks on your credit report for auto or mortgage inquiries older than 30 days. If it finds some, it counts all those inquiries that fall in a typical shopping period as just one inquiry when determining your score.
For FICO scores calculated from older versions of the scoring formula, this shopping period is any 14 day span.
For FICO scores calculated from the newest versions of the scoring formula, this shopping period is any 45 day span.
Each lender chooses which version of the FICO scoring formula it wants the credit reporting agency to use to calculate your FICO score.
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I’m doing some research on this. Thanks for helping me out.
Very nice information. Thanks for this. You really have a very informative site, thank you for sharing!