x10 Home Automation - Control Lights, Irrigation, Appliances

How Can Bad Credit Force You To Live In One Home And Pay Enough For Two?

There have been countless books and articles written over the years about the importance of maintaining good credit. The reasons are myriad, but when you boil it all down the real issue is how much money your credit, good or bad, is going to cost you. We all want to earn, and keep, as much as possible to maintain our lifestyle. Our credit plays a vital role in our ability, or inability, to accomplish this.

So how does good credit stack up against bad credit in regards to the amount of money spent over the term of a loan? Let us use an example of two men, both looking to purchase the same style home in the same neighborhood for the exact same price, which for this example is $350,000.

Buyer Number 1 is a mid-level executive who earns $120,000 per year for a company he has worked at since he graduated college. He has practiced frugality in all his spending habits; sticking to a monthly budget; diligently setting aside money in growth funds; and always paying his bills on time without fail. His credit is nearly flawless as indicated by his FICO score of 825. Potential lenders will almost immediately offer a loan at the current lowest interest rates as a reward for his good credit history. He has set aside $15,000 as a down payment towards the purchase of the house.

Buyer Number 2 is also a mid-level executive earning $120,000 per year for a company he has been with for a little more than a year. He has a history of changing jobs, even occupations, every two years or so. He has lived his life up to this point with the mindset of "spend it while you got it". Subsequently he has little in the way of savings or investments. Because of his careless spending habits he often runs out of money and is late on his bills more often than not. His current credit situation makes him a far greater risk than Buyer Number 1. Potential lenders are going to carefully scrutinize his finances thoroughly before deciding to go ahead with the loan. Through a sheer stroke of luck he has inherited a moderate amount of money and has decided to use $15,000 of this windfall towards the purchase of a home. His FICO score right now is around 625.

Given the above parameters let's compare the cost of the home purchase for each man using current interest rates. Buyer Number 1 because of his excellent credit qualified for a fixed-rate 30-year mortgage loan at 6.32%, while Buyer Number 2 with his bruised credit barely managed to qualify for a fixed-rate 30-year mortgage loan at 8.25%.

So how do these numbers compare against each other over the 30 years of the loan?

Buyer Number 1 has his monthly payment fixed at $2262.93, while Buyer Number 2 has his monthly payment fixed at $2701.24. Given the difference in monthly payments of 438.31 it is now a simple matter of multiplication. Over 30 years Buyer Number 2 will pay an additional $157,791.60 for the same house as Buyer Number 1.

Buyer Number 2, because of his bad credit, is literally paying in higher interest what amounts to the cost of another home over the 30 years of his mortgage. If you think this example is far-fetched then think again. It is a scenario that occurs in our country every day and there are instances where the disparity and dollar amounts between mortgages are much higher.

This simple example clearly illustrates that if you have good credit do everything you can to keep it that way, and if you have bad credit start now to fix it. There is a cure for this disease, but you have to decide if you want to swallow the medicine. Your financial life may depend on it.

SaveMeFromForeClosure.com has earned its solid reputation by helping homeowners keep or sell their homes to stop foreclosure industry. Want to know how we can help you repair your credit and improve your credit score? Visit our website or call us at 1-888-472-8380 for a no-obligation consultation.

MORE ARTICLES:

Strategic Healthcare Programs (SHP) and Thornberry Ltd Announce Automated Interface between Healthcare Software Programs
Web interface enables SHP clinician-level analysis of NDoc® clinical point of care patient data. New automated web interface speeds the transfer of data from the NDoc clinical system to Strategic Healthcare Programs (SHP) software. Web services technology transfers OASIS assessments with clinician-level detail from NDoc to the SHP database.

Control The Air Flow Of Your Home: Ceiling Fan Remote Control
If you market something that is effective but caters towards convenience then you are on a winner at the moment. People specifically buy convenient items for their household because they just want to unwind at home after a long and stressful day?s work. They do not want to be bothered with technical things anymore because their hectic lifestyle does not allow it. Take the TV remote control for example. Why get up to change the channel if you do not have to? They will pay anything for a little extra comfort, which is why the ceiling fan remote control has been such a hit!

Ebay Auction Software: Automated Gold Mining For Auctions On Ebay And Elsewhere Using Software
You may already know how to grab great bargains on eBay and other auction websites because the titles are misspelled. In fact, you may spend a great deal of time hunting around for them, one by one. You may even know of a website or two that offers you a free list of these misspelt auction listings. Do you ever wonder if you're missing out on a bunch of them, just because it's too tedious to plow through them all by hand?

Comcast Selects Approva to Automate Controls Monitoring for Oracle E-Business Suite
Approva® Corporation, the leader in continuous controls monitoring, today announced that Comcast Corporation has licensed Approva?s BizRights® CCM Platform and Enterprise Controls Suite to monitor both general computing and user access controls across its enterprise-wide deployment of the Oracle E-Business Suite.

Motion Sensor Home Security Cameras
Many security cameras do not record well in the dark. This implies that a slinky presence can get away with any deed as long as the dark provides a shield. This is where a security camera with motion sensor comes in. The motion sensor triggers an automatic response as soon as it picks up a movement in its vicinity. Some of these cameras come equipped with floodlights that power up as soon as a motion is registered, flooding the area with light and catching the culprit in the act. This is further enhanced by the fact that a security camera with motion sensor often offers a connection to a TV or computer monitor. As soon as the sensor is triggered, images of the perimeter can be captured immediately.

Autonomic Controls Announces Touch Panel Software For Home Theater and Whole-House Audio
Autonomic Controls, the leading provider of media integration software for AMX, Crestron and HAI systems has announced a new product that enables remote access to digital music and video media using UMPC's and touch panels.

Windows Macro - Create Macros To Automate Common Tasks
Want to automate and record mouse clicks and keystrokes? Want a program that records macros on Windows OS?

Review Of Forex Killer - Automated Forex Trading Killer Review
We are all feeling the pinch today The word is out, the economy stinks and our "leaders' don't seem to have a clue

SmartLabs Introduces HouseLinc 2 - INSTEON Desktop Software w/ USB Interface: Easy INSTEON and X10 Home Automation Control and Management from a PC
SmartLabs, Inc. announces the release of HouseLinc 2, the next generation of the award-winning the HouseLinc - INSTEON Desktop Software. Building on the original software designed for the management of INSTEON-compatible devices in the home, HouseLinc 2 includes new features like background link management, enhanced product support and an all new look. It is available as a kit for first time users or as a free upgrade kit for original HouseLinc owners. Each kit comes with a required HouseLinc 2-enabled INSTEON PowerLinc Modem.

Smarthome Hires TigerDirect Executive to Lead Home Automation Category: Bruce Matthews Joins Smarthome as Vice President of Marketing to
Smarthome, www.smarthome.com (http://www.smarthome.com), a SmartLabs, Inc., www.smartlabsinc.com (http://www.smartlabsinc.com), company and the world's leading provider of home automation products, has hired Bruce Matthews as vice president of marketing. Matthews joins SmartLabs from TigerDirect, www.tigerdirect.com (http://www.tigerdirect.com), where he was vice president of business development.

Automate Your Work Using Macro System Module
Every webstore owner should take online store solutions for updating hundreds and thousands of products. They has to be edited quite often, thus making your store flexible and up-to-date. Large and medium stores have a lot of products with similar descriptions, however you have to go over each product separately and edit every piece of text manually. This is how it used to be. Now, you may automate this time-consuming operation using Macro System by MagneticOne. This module allows you to change similar parts of text in product descriptions just with one click. It is especially useful if you are the owner of a large store with lots of products: the module will help you to change parts of multiple product descriptions at once.

Allied Home Mortgage Implements Automated Compliance Controls Across Hundreds of Branches with ComplianceEase Solutions
One of the nations largest mortgage broker networks automates its compliance risk management with state-of-the-art technology.

Automated Forex software review
For the time being automated trading in forex is the buzzword.

Tomorrow Incorporated Lights Up the Holidays with Motion-Sensing Britepack(TM) Apparel
New consumer products company ushers in next craze in technology-forward and trend-setting school accessories.

Automate, Automate, Automate
The key to running a successful and efficient online business is to automate as much of your work as possible:Automate your order-taking process..