What to do if your bank closes your line of credit

CNBC reports that Wells Fargo is closing personal lines of credit and no longer offering the product to consumers. In a letter sent to their clients, they state that the closure may impact their credit scores. In my opinion, this really stinks!

If someone has a balance and the lender closes the account, it could be damaging to their credit scores. It’s really not fair when the consumer has done nothing to trigger the account to be closed – it’s simple a decision that the bank (Wells Fargo, in this case) has made. It doesn’t matter if the consumer has made their payments on time or how established the account is, it will most likely cause scores to drop until the debt is paid off.

One option one could take to potentially reduce credit score hit would be to pay off the debt now. This will eliminate having a balance reported on having a “closed” debt with a balance due against your credit. Reportedly, the credit lines being closed by Wells Fargo go up to $100,000.

Homeowners in this situation could look at refinancing to pay off the credit line. This may be an attractive options with how low mortgage rates are currently and how much homes have appreciated. I hope that if you have a credit line that is being closed by a bank that you DO NOT use that bank for a refinance.

If your home is located anywhere in Washington state, I’m happy to review your scenario to see if refinancing makes sense for you. Click here for a no-hassle mortgage rate quote.

Mortgage rates move lower

Mortgage rates have moved lower as reflected in Freddie Mac’s Prime Market Survey released this morning.
From Freddie Mac: “Mortgage rates decreased this week following the dip in U.S. Treasury yields. While mortgage rates tend to follow Treasury yields closely, other factors can be impactful such as the labor markets, which are continuing to improve per last week’s jobs report,” said Sam Khater, Freddie Mac’s Chief Economist. “We expect economic growth to gradually drive interest rates higher, but homebuyers and refinance borrowers still have an opportunity to take advantage of 30-year rates that are expected to continue to hover around three percent.”

It’s important to remember that the survey is based on an average from applications last week – so the rates posted here are a basically a week old. The The survey is most useful for showing how rates are trending as it shows where rates have been vs. where they are now.

For a more “fresh perspective” on current mortgage rates, I like to rely on watching the trends with mortgage backed securities (bonds) which mortgage rates are based on. Basically, the higher the green stick moves, the lower mortgage rates “should” be.

If you missed out on the last refi-boom, this is could be your opportunity! Many refinances do not require an appraisal, which helps to make the process easier and less costly.

If you are considering refinancing your home located anywhere in Washington state, I am happy to help you!

PS: I help home buyers with their mortgage needs too!

Click here for a no hassle rate quote or here to apply for a refi or preapproval for a home purchase.

 

Income Limits increased for Home Advantage with Down Payment Assistance

Hot off the press! Washington State Housing Finance Commission has just announced that income limits for the Home Advantage program are being increased to $160,000 effective July 2, 2021. Click here for current mortgage rates for your scenario. [Read more…]

Fed Leaves Rates the Same BUT…

The Fed’s announcement today to leave the funds rate unchanged was not a surprise to the markets. What did send the bond market in a tizzy this afternoon was that the Fed ever-so-slightly moved the goal posts out a bit for inflation. [Read more…]

Reduce your mortgage payment AND improve your your home with a refi

Recently I helped some clients refinance their mortgage on their home in Tacoma. Not only did we dramatically reduce their monthly mortgage mortgage payment, they were able to make some improvements to their home. [Read more…]

Mortgage Rates Move Lower

Freddie Mac released the Prime Mortgage Market Survey this morning showing mortgage interest rates have been trending lower.


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The Mortgage Junk Mail Bag

It’s been a while since I’ve written about mortgage junk mail. Today I have been presented the opportunity as a client I helped with their mortgage a few years ago reached out to me regarding some mail they recently received that appeared to have possibly come from our company, Mortgage Master.

The P.O. J. (piece of junk) appears to know a lot of information about the home owner – this is because your mortgage and original loan amount are public record.  This type of marketing also tends to offer lower than available interest rates and things like “no payments for two months”…perhaps it features an offer code or a limited time offer. [Read more…]

Home Buyer Classes for Washington State

If you are brand new or a little rusty at buying a home, there are some excellent options that are available for you. Some classes feature unique benefits for the students. Before taking one of the courses below, I suggest you reach out to a local, licensed Loan Officer to see if one class may be better suited for your home buying goals.

Here are a few online home buying classes you may want to consider: [Read more…]