Saturday, September 30, 2006

The Rental Anomaly

It has been surmised by some that the rental anomaly does not exist in a mortgage paradigm. This refinancing school of thought is the result of short term interest rate pressure that has mad bankruptcy prevalent. Keeping in mind that a purchase money mortgage requires a borrower to put down a down payment in direct correlation with his credit score, one can deduce that the mortgage paradigm does in fact exist.

There are fundamentally, three types of mortgage paradigms: mortgage refinance, mortgage purchase, and a lease purchase treated as a mortgage refinance. Let's deal with each one, one at a time. A mortgage purchase may or may not require a down payment. This is in direct contradiction to a low interest rate loan. A low interest rate loan is in opposition to high interest rate credit card debt. You make or may not be required to go through credit counseling for this or any other down payment assistance program, but be ready to save the down payment in your checking account.

the second and perhaps most puzzling type of bankruptcy buyout, is the debt consolidation refinance loan. If you have undergone credit repair or credit restoration then you know full well that free credit repair is preferred to a credit restoration program that is not free. the credit bureaus, Equifax, Experian, and Trans Union collect the trade line data for a credit report and then provide credit scores from FICO. The FICO score is based on the credit cards, mortgage, insstallment loans and other data on a credit report.

Don't forget that the credit report, FICO, bankruptcy, foreclosure, credit card debt and other items are all factored into a credit report. Once again, take time to discover the anomaly in a mortgage paradigm and don't froget about the free credit repair.