Mortgage Lender and the almighty FICO score

[Coprolite]

The penalty in most stores that do cash same as credit just hurts the cash only crowd. Even the cash only pump prices around here aren't competitive with other station's prices.

Win, if you play the percentages, the ones who don't qualify for the lowest rates are the ones who pay interest and often miss payments and wreck their own credit. I believe the people on this thread simply wanted to demonstrate the self imposed fiscal penalty and ask why. The sad fact is that the majority of people in the world aren't savvy to sound fiscal policy and ruin themselves as a result.

The only ones who have to agree with my rules are the ones that live in my house. The also have to live with me buying synthetic for $25 when Supertech would probably do just as well...on some of my cars.

 

[Sayjac]

Originally Posted By: HemiHawk
Originally Posted By: Panzerman
I think alot is lost by faithful Dave Ramsey followers, who I don't agree with at all.
The point is you are missing all the advantages that responsible credit card users enjoy because you don't want to use a credit card in the system it was designed for. So just complain and be miserable and listen to that idiot Dave Ramsey. The rest of us enjoy the cash back, benefits and enjoy the system in place.
When your in Rome, Don't do as the Greek.

I will say one thing I saw the other day I hadn't thought all the way through... Some of this "cash back" and bonuses we are actually just paying for. Businesses are charged a fee to be allowed to use credit cards. That is part of where the cash back comes from. As a result goods prices are raised to compensate for the % loss businesses are hit with. This isn't where all of these rewards/cash back are funded from of course but still. Nothing is free...

Partially true. However whether one chooses to use CC's or not, it's built into the system now for the vast majority of retail establishments. So why not take advantage of the system. And paying cash isn't going to change that no matter what ones opinion is of using having and using CCs. It's rather a straw man argument.

As for trying to get cash back in any meaningful way being "too much work", not my experience. Used for gas, groceries etc, and quarterly categories with cards that have it that way, it builds up. The way I look at, every little bit back in my pocket helps.

 

[CKN]

Yes-for the rest of you who do not pay off your balances monthly-or pay cash, please continue to do so. I like my free Amazon purchases and restaurant meals!

 

[OneEyeJack]

As far as getting a lower interest rate on a loan from a bank because of a good FICO score I have found in direct comparisons that the private paper I've been dealing with has been equal or better. A couple of my home loan purchases have been no interest and I don't charge interest when I sell a home with my own paper. It's a different world and it requires more diligence and actually reading every line of every piece of paper and understanding it all or quickly finding out. It also requires an attorney and that person has to get involved and pay attention, too. Banks have a lot of overhead and it shows in all their dealings. All they have to offer is words on paper and their words are sometimes very expensive.

 

[CKN]

Yes "One Eye Jack" we know you and a group of friends/acquaintances avoid banks and are a "fringe group" at least compared to how everyone else buys a house. You maybe very philanthropic-but your business acumen leaves a lot to be desired.

Charging no interest and carrying paper on what a home costs is ludicrous. Down the road-10years or whatever-the money you are being paid is worth that much less-without an interest cushion.

BTW-we all know how you feel and this thread has about run it's course.

Good luck!

 

[OneEyeJack]

I've been doing fine with out an "interest cushion". Maybe it's the lack of overhead but what works is not going to get fixed. I've done enough of these deals to not worry about advice from someone that has no idea of what else might be out there. I believe that banks are necessary and useful. I'm not anti anything as much as I'm pro going my own way. This thread has run it's course because if you deal with a bank you do things their way and that's then end of that. The carrot is there if your willing to reach for it.

 

[Mr Nice]

Originally Posted By: OneEyeJack
I've been doing fine with out an "interest cushion". Maybe it's the lack of overhead but what works is not going to get fixed. I've done enough of these deals to not worry about advice from someone that has no idea of what else might be out there. I believe that banks are necessary and useful. I'm not anti anything as much as I'm pro going my own way. This thread has run it's course because if you deal with a bank you do things their way and that's then end of that. The carrot is there if your willing to reach for it.


Realistically, people today have no other choices that to borrow money for a home loan using their credit. Unless you have wealthy parents buying you a house cash, you'll be getting a loan for 15-30 years. Times have changed where its normal for Americans to be up to their eyeballs in debt.

 

[CKN]

There is alot that "Jack" isn't telling us. I am very familiar with the So. Cal real estate market. The "price of admission" in to that market is $400,000.00.


WE are being told that these houses he has bought are being paid off in short time frames. So-either these houses are being sold for at least $100,00.00 under market-or the income that "Jack" and his friends have are tremendous-to be able to do this. (OR-he hasn't purchased a house using this method in 15 years-before the last two or three Real Estate spikes in So. Cal).

"Jack" and his friends-either way you look at it-and leaving a tremendous amount of money on the table.

 

[OneEyeJack]

Thanks for the comment but my wife and I are doing just fine other than some nagging medical problems (cancer-the curse) for me, I'm not leaving any money on the table based on my expectations. I'm getting my asking price and that's enough. I sometimes think of interest as someone earning money off someone else's good work. I have no debt beyond the home in which I reside. I live a simple life well within my means and I want for nothing of any real value. That last part is my definition of being "rich". I'm disappointed sometimes when someone tells my I'm doing everything all wrong and I need a credit score and can get if I'll just charge a bunch of stuff and pay it off before the interest comes due. I've never dealt with anyone that uses a FICO score and I don't, either. I'm sorry and I apologize if I overreacted in my postings. My wife just hit me on top of my head and told me I'm writing too much about my dealings in the financial world and she's correct.

 

[Win]

Originally Posted By: Coprolite
.....

Win, if you play the percentages, the ones who don't qualify for the lowest rates are the ones who pay interest and often miss payments and wreck their own credit. I believe the people on this thread simply wanted to demonstrate the self imposed fiscal penalty and ask why. The sad fact is that the majority of people in the world aren't savvy to sound fiscal policy and ruin themselves as a result.



I do appreciate that, but IIRC this thread started with consternation at the simplistic practice of using a singular number, derived by ( hopefully ) unrelated third parties, from the use, misuse, or lack of use, of unsecured consumer loan products as a material determinant to qualification for another species of secured consumer loan product, before the train left the track.

Ever try to collect an unsecured debt? Have you considered the possibility that this is just a constructed method to make sure that the large financial institutions holding this unsecured debt have created to have a better chance of realizing payment of the unsecured loan from recalcitrant borrowers than they would ordinarily have, and that it has little to do with the possibility of realizing full and timely payment from a properly secured loan?

I'm still not sure that you appreciate that there are different choirs that can be preached to, and a sermon delivered to one choir may not have much merit given to choirs that have different, possibly more extensive experience, than you.

 

[Jarlaxle]

Originally Posted By: Rolla07
You seem to make it sound like you are perfect but your fico is low? Something doesnt add up...why is your fico low then? If you dont know, id start by looking into it. You likely want to get your rate up prior. Are you selling the house you already own or do you still owe money on it? Or are you buying a 2nd house?


So, you did not read the post, then.