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Please add 2 and 4 and type the answer here:
Mortgage Rates
30 Yr FRM 4.83% -0.08%
15 Yr FRM 4.32% -0.04%
1 Yr ARM 4.35% -0.11%
5/1 Yr ARM 4.25% -0.04%
30 YR Tres 4.30% 0.01%
Fed Prime 3.25% 0.00%
Q: Is having a mortgage loan good for your credit?
  • Having a mixture of credit types--Revolving, Installment & Mortgage--is good for your credit if they are paid as agreed.  Having only one type, especially if it is revolving, is not a good thing for your credit score unless they are all paid as agreed and do not have more than 50% aggregate usage.  A mortgage loan being paid as agreed is the best type of credit to have reporting, because it is usually for a higher dollar amount and if handled responsibly, will be a good indicator to future creditors as to how new extensions of credit will be handled.

    On the other hand, a missed mortgage payment will have a larger negative effect on your credit and will magnify other late payments [30 days late or more] and their cumulative effect on your credit scores.


    Answer Submitted on Thu, Jan 22 2009

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    Answer Contributed by: MisterVA
    Paul Chandler, Certified Mortgage Professional
    Blog: www.misterva.typepad.com
    www.misterva.net
    Prime Lending
    Jacksonville FL



    Certified Mortgage Professional in both New Hampshire & Vermont.
    Licensed Mortgage Broker in Florida
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