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See what's happening with home values in more than 400 metropolitan areas with HSH's Home Value Tracker, just updated though the second quarter of 2022.

See what's happening with home values in more than 400 metropolitan areas with HSH's Home Value Tracker, just updated though the second quarter of 2022.

If I cancel seldom used credit cards, will this have an adverse effect on my credit rating?

Q: If I cancel seldom used credit cards, will this have an adverse effect on my credit rating?

A: It may have some effect, since it does cause a reduction in the total amount of potential credit you can borrow, while increasing your utilization ratio (the percent of your total available credit you are actively using) which are factors which go into your credit score. In general, it is probably a good idea to close out little or unused accounts over time, but you should not do so before you plan to do any new borrowing for any major purchases. Unless your credit is a mess, it is usually better to leave your credit profile undisturbed as you prepare to buy a home, a car or take on any new significant debt.


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Keith Gumbinger
Keith Gumbinger
Mortgage Expert
Vice President, HSH.com
About Keith: Mortgage market observer and analyst with 35 years experience... (more)
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Q: How are mortgage interest rates determined?
AUG 18, 2022
A:

Mortgage rates fluctuate from day to day, depending on a number of factors related to the economy and to choices made by investors. While some mortgage money comes from deposits held by banks and credit unions, most of the funds for borrowers come from investors in capital markets.

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Q: Will today's stock market influence tomorrow's mortgage rates?
AUG 16, 2022
A:

Mortgage rates are influenced by a variety of factors, rather than moving in lockstep with any one economic indicator. The stock market rises and falls for a wide variety of reasons, including global, economic and political issues, but as a broad rule of thumb, a rising stock market indicates optimism among investors about the economy.

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Q: Should I pay private mortgage insurance out of pocket or finance the cost?
AUG 12, 2022
A:

For the most part, this is a discussion about time. You should compare the total costs of the difference in the two interest rates over your given time horizon.

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