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oeschamp
Joined: 13 Apr 2009
oeschamp's page
Posts: 1
35 Magic Points
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Subject: Mortgage Information in Equifax Report
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Mon Apr 13, 2009 9:47 pm
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| The debt to credit ratio in this report is determined to be 86% even though the specified credit limit is 1/3 to 1/4 of the property's value. In current market conditions, the outstanding mortgage balance is approximately 25% of the property's true worth. How do I make the necessary amendment to my credit report? |
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carol
Joined: 27 Jun 2006
carol's page
Posts: 1307
Location: Los Angeles, California
29555 Magic Points
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Tue Apr 14, 2009 7:18 am
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Your debt to credit ratio is very high and so you should first concentrate on paying off some of the unsecured debts like the credit card debt and personal loans. This is because "amounts owed" contributes 30% in your credit score and high "debt to credit ratio" gives a negative impact to the amounts owed factor and as a result your credit score decreases.
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cbass1017
Joined: 01 Feb 2008
cbass1017's page
Posts: 143
Location: PA
1528 Magic Points
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Wed Apr 15, 2009 1:58 am
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I think you might be getting debt to credit confused with your loan to value ratio. It is great that you don't owe much on your home but your homes value has nothing to do with your debt to credit ratio. It has to do with the balance on your lines of credit compared to the available credit limit you have on them.
Carol is right that your debt to credit ratio is very important in determining your credit score but your loan to value ratio will only play a role when you are looking to refinance or take out a 2nd mortgage on your home.
Hope this helps.
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Scott McKay
FreeOnlineCreditGuide.com |
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Kathleen McDonald
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Subject: Mortgage Information in Equifax Report
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Thu Apr 16, 2009 12:21 pm
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| I have very little credit card debt - it is less than 15% of total credit lines available. I also have no installment loans. There is only 1 negative on file - for a dispute over an inconsequential amount. Looking at the credit evaluation it is the loan to value ratio which is skewing my report - and in talking with a credit professional, it appears that my zip code may be redlined even though this is an area which has been gentrified in the last 20 years, resulting in significant increases in property values. The bottom line appears to be that I need to contest the debt to loan valuation. Any thoughts on the best way to do this? |
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cbass1017
Joined: 01 Feb 2008
cbass1017's page
Posts: 143
Location: PA
1528 Magic Points
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Fri Apr 17, 2009 1:44 am
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Hello Kathleen,
If you are saying you were turned down for a mortgage of somekind due to the loan to value ratio you may still have some options. Some lenders when doing an application for a home loan of any kind will first pull what's called a property report for important information on that property. In this includes what value your home was last assessed at for your taxes.
This is barely the exact value but just an estimation that can actually be way off depending on how long ago the house was assessed. You can sometimes ask the lender if they would be willing to do a full appraisal of the property. Some lenders may pay for it and some may ask you to pay this out of your own pocket. But if you honestly believe the house is valued much higher than what they are saying it might be worth a shot.
If not maybe you should consider a different lender...
Good luck.
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Scott McKay
FreeOnlineCreditGuide.com |
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mindpath
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Subject: credit limits should not include mortgage
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Wed Feb 03, 2010 1:29 am
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| This is so skewed... I just reviewed equifax report and found I have the same trouble (i think) as oeschamp - i have one new mortgage yet i own several properties (100% equity) but the resulting debt to credit ratio (being new) is 99% (mortgage) which skewes true "unsecured" revolving credit which i have 37%. My resulting balance is now 74% (and a new 'average' credit score result)... so can anyone explain this?? mortage (without a 'credit limit') should not be "added" to existing "unsecured" revolving credit totals - and believe i should approach equifax and ask why.... |
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