Rates are down today.Today’s rates with NO lender fees are 4.375% on a 30 year fixed, 3.625 % on a 15 year fixed and 2.75% on a 5/1 ARM. (click here to get the details).

Today’s tip is a good one. If you have a credit card and pay it off in full every month that is a good thing right? Well, yes it is, from a financial responsibility stand point, but not so much for a mortgage transaction.

I explain in today’s video:

(Watch it on your mobile phone or email reader here)

Do you ever get bored at work or at the bus stop? Take a page out of this guys book and just dance! Click on the link for the full video. Now that’s what I call seizing the moment!

Heres the deal. These types of credit cards usually don’t have a minimum payment due on the credit bureau. The bureau usually states “paid in full monthly”. If this happens, there is not enough information to calculate your debt to income ratio. Obviously there is some sort of payment due.
If your cards carry a balance and there is no minimum payment listed you basically have three options.
1. Update your credit bureau to include a minimum monthly payment – This can be a pain.
2. Get a copy of your statement that shows a minimum monthly payment – Most statement don’t have a payment either. OR
3. Show proof of funds to pay the balance in full. A 30 day bank statement usually works best and is usually the best option.

The three cards that have no minimum monthly payment listed are usually – American express, Chase and Capital one. So if you have one of these cards be prepared to jump through some hoops to get this taken care of in underwriting.

It would be awesome if you could help me in my mission to bring transparency to mortgage lending by sharing today’s episode on Facebook or Twitter. Let’s change the way people shop for a mortgage…forever!

See you tomorrow!

– Mike

PS. To ask a question, get advice, or find out what your lender is making off your loan, just post a comment below. Daily comparison rates, calculators, and other cool features are available in the free Rates in Motion LoanApp by going to your smart phone and clicking on this link, activation code is 9203780002

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