Rising Interest Rates Expected to Impact Homebuyer Traffic

Real estate agents are divided on whether rising interest rates will have a negative impact on home purchase activity. Average interest rates on 30-year fixed-rate mortgages increased significantly in June, according to Freddie Mac, from 3.54% in May to 4.37% on July 18.

“As interest rates rise coupled with rising sale prices many buyers are falling out of the market,” according to an agent in California. An agent in Washington state said rising interest rates are both motivating buyers and keeping some potential buyers from being able to purchase a home.
Analysts at CoreLogic said even with recent home price gains, affordability remains near record levels in many markets across the country. “For housing price affordability to return to the average level that we saw between 2000 and 2004, either home prices would have to rise an additional 47% or interest rates rise to 6.75% ,” the firm said.

Sam Khater, senior economist at CoreLogic, predicted that rising interest rates won’t deter a significant number of potential home buyers. “Given the very high home affordability levels and more supply on the market, CoreLogic remains optimistic that rising rates and home prices will not dissuade the more traditional buyer from entering the market and financing a home purchase,” he said.

After a strong spring home buying season, the growth rate of buyer traffic continued to decline in
June, according to results from the latest Campbell/Inside Mortgage Finance HousingPulse Tracking Survey. Traffic from current homeowners and first-time home buyers outpaced traffic from investors for the sixth consecutive month, according to home buyer traffic diffusion indexes. Some investors have started to reduce their home purchase activity and sell properties due to concerns about potential home price declines.

“It’s a seller’s paradise: abundance of buyers, shortage of listings,” according to an agent in Texas. “The property values are steadily rising and multiple offers occur frequently. I have investors who troll the listings for REOs and they are making offer s at a much less frequent pace. And the prices they are paying are closer to asking price, if not over asking price.

Current homeowners and first-time home buyers are focusing on non-distressed properties, with the market showing continued signs of strength. Average time on market for non-distressed properties was falling steeply in June, the average number of offers for non-distressed properties remained high, and sales-to-list price ratios on non-distressed properties were at elevated levels.

Nationwide, the average time on market for non-distressed properties was 8.6 weeks in June, based on the three-month moving average, down from 12.1 weeks in December. Western states had the lowest average time on market in June, led by California where non-distressed
properties averaged 4.5 weeks on the market before selling.

Nationally, non-distressed properties received an average of 2.3 offers in June, based on the three
month moving average. Average offers on non-distressed properties have steadily trended upwards since the fall of 2010 when they averaged 1.7 offers. And sales-to-list price ratios on non-distressed properties increased for six consecutive months, hitting 97.9% in June, based on the three-month moving average. In December 2012, sales-to-list price ratios for non-distressed properties were at 95.6%, based on the three-month moving average, closer to the baseline ratio of 95.0% seen from June 2010 through June 2012.

Source:Housing Trends Update July 2013
Does a pool add value to a home? No. And yes. In general, building a pool is not the best way to add value to your home. You’re better off making physical improvements to your actual house instead of adding a pool to your yard.

However, a pool can add value to your home in some cases:
  • If you live in a higher-end neighborhood and most of your neighbors have pools. In fact, not having a pool might make your home harder to sell.
  • If you live in a warm climate, such as Florida or Hawaii.
  • Your lot is big enough to accommodate a pool and still have some yard left over for play or gardening.
Still, that’s no guarantee you’ll get a return on your investment. At most, your home’s value might increase 7% if all circumstances are right when it comes time to sell. Those circumstances include the points made above, plus:
  • The style of the pool. Does it fit the neighborhood?
  • The condition of the pool. Is it well-maintained?
  • Age of the pool. If you put a pool in today and sell in 20 years, you probably won’t recoup your costs, especially if the pool needs updating.
  • You can attract the right buyer. Couples with very young children may shy away from pools because of safety issues, but an older childless couple may fall in love with it.
But only you, the homeowner, can determine the true return on investment. A pool can add value to your quality of life and enhance the enjoyment of your home. You can’t put a price tag on that.

But we can put a price tag on how much a pool costs to build and maintain.

The Cost to Build a Pool The average cost in the U.S. to install, equip, and fill a 600-sq.-ft. concrete pool starts at $30,000.

Add in details like safety fences (most states require them), waterfalls, lighting, landscaping, and perhaps a spa, and you’re easily looking at totals approaching $100,000.

Costs also depend on the type of pool you choose.

Gunite is the most popular in-ground pool. Gunite is a mixture of cement and sand, which can be poured into almost any shape. It has replaced concrete pools as the sought-after standard.

Fiberglass shells and those with vinyl liners fall on the lower end of the budget scale, but the liners typically need replacing every 10 or so years. Changing the liner requires draining the pool and replacing the edging (called coping), so over time, costs add up. Most home buyers will insist that you replace a vinyl liner, even if it’s only a few years old.


Source: HouseLogic -Does a Pool Add Value to a Home? by Julie-Sturgeon.
Read more: http://www.houselogic.com/home-advice/pools-spas/ what_to_consider_before_building_pool/
Visit HouseLogic.com for more articles like this. Reprinted from HouseLogic.com with permission of the NATIONAL ASSOCIATION OF REALTORS®  

Demystifying Flood Insurance

The real facts about the National Flood Insurance Program surprise even the most diligent homeowner. Don’t fall for these myths.

Myth #1: Hurricanes, not floods, are the No. 1 natural disaster and cause the biggest economic losses in the United States.
Hurricanes grab the headlines, but because floods happen in virtually every part of the country, they cause more losses than any other type of natural disaster. Homeowners insurance doesn’t cover floods. Only flood insurance covers flood damage to your home.

What causes floods?
  • Rising rivers
  • Storms
  • Early snowmelts
  • Man made problems from the construction of roads, shopping malls, homes, and industrial complexes
  • Hurricanes
Myth #2: Everyone who lives in a flood zone has to buy flood insurance.
Nope. You must buy flood insurance only if yo
u meet all three of these criteria:
  • You buy a home in a special flood hazard area where there’s a 1% chance of flooding in any year.
  • Your community participates in the National Flood Insurance Program.
  • You buy or refinance your home using a loan from a federally regulated financial institution, or a Fannie Mae- or Freddie Mac-guaranteed loan.
If you don’t meet these three requirements, no one will make you buy flood insurance. 

About 5.6 million Americans living in the more than 20,500 communities that participate in the flood insurance program buy flood insurance.

Myth #3: Flood insurance is always expensive
Flood insurance through the National Flood Insurance Program is sometimes expensive and sometimes cheap, depending on your home’s value, location, and height off the ground, as well as the value of your possessions.
  • It can cost more than $8,000 a year if you buy the highest possible coverage of $250,000 for property and $100,000 for contents for a second home in the highest-risk areas.
  • It can cost as little as $129 a year for $20,000 of rebuilding coverage and $8,000 in contents for your main home, if it’s in a low-risk area.
Premiums vary a lot based on where you live. If you want to buy $250,000 of building coverage and $100,000 of contents coverage for your main home, you’d pay about:
  • $7,173 in a high-risk coastal area.
  • $3,289 in a high-risk area.
  • $1,798 a year in a low-to-moderate-risk area.
Myth #4: Taxpayers are footing the bill for federal flood insurance.
The NFIP doesn’t spend any tax dollars. The government sets the premium rates high enough to cover flood insurance claims and operating expenses in an average historical loss year. The program can borrow money from the U.S. Treasury when losses are heavy, but has to pay those loans back with interest.

To make sure it stays solvent, the NFIP is:
  • Phasing out subsidies for second and vacation homes and homeowners..
  • Improved the accuracy of flood maps.
Myth #5: Companies sell flood insurance, so the government doesn’t need to.
Private flood insurance is very expensive and only a handful of companies offer excess flood insurance to homeowners with whose homes are valued at more than $250,000. The National Flood Insurance Program is the only program offering low- and middle-income homeowners flood insurance. If it disappeared, those homeowners wouldn’t have another option.

Source: HouseLogic - Surprising Facts About Flood Insurance By: Dona DeZube Read more:  http://www.houselogic.com/home-advice/disaster-insurance/flood-insurance-facts/7/. Visit HouseLogic.com for more articles like this. Reprinted from HouseLogic.com with permission of the NATIONAL ASSOCIATION OF REALTORS®  

Planning a New Patio Look -- Using Stamped Concrete

A stamped concrete patio gives you the look and texture of a stone patio for a lot less than the real thing — up to 50% less than the cost of natural slate or limestone.That’s not all. Stamped concrete can mimic brick, cobblestones, cracked earth, and weathered wood. Add a bit of fun with leaf patterns, animal shapes, even dinosaur footprints.

Best of all, a stamped concrete patio is low-maintenance — the “stones” won’t settle over time, creating uneven surfaces, and there are no grout or joints that can open up to let grass and weeds sprout.

What’s a Stamped Concrete Patio?
A stamped concrete patio is simply a concrete slab with a textured, embossed surface. The contractor:
  • Pours and smooths the slab.
  • Presses a pattern into the surface while the concrete is still wet and soft.
  • For realism, adds color to the concrete as it’s mixed, or sprays it on after the surface has been stamped.
Make sure you hire a contractor who’s done stamping, and has the examples to prove it. Check references.

What’s the Deal with the Stamps?
The patterns are made using large, flexible polyurethane stamps. The stamps are about 2-by-2-feet square and an inch or two thick, and they’re pressed into the wet concrete to create the textured finish.

A concrete contractor may step on the stamps to press them into the concrete or use a tamping tool. Before putting the stamp on the concrete, the contractor sprays the patterned side of the stamp with a release agent that prevents concrete from sticking to it. Using a colored release agent accents cracks and grout lines, giving the finish an “antique” look that enhances realism.

One pattern usually is a set that includes several stamps, each one with varying textures and shapes, so the overall pattern isn’t repeated too frequently. Stamps also have interlocking tabs so any grout lines align perfectly.

What’s It Cost?
A stamped concrete patio costs $10-$15 per square foot, professionally installed. Here’s a quick price comparison:
  • Plain concrete: $6-$12 per sq. ft.
  • Brick: $14-$20 per sq. ft.
  • Stone, slate, or marble: $17-$28 per sq. ft.
  • Concrete pavers: $13-$20 per sq. ft.
Can I Do It Myself?
Making a stamped concrete patio is a fairly simple process, but only skilled DIYers should attempt it. That’s because concrete can be a tricky medium to work with:
  • It requires a properly installed base of compacted sand and gravel.
  • It’s heavy; you’ll need to be strong.
  • Concrete requires specialty tools to shape and smooth the surface (any specialty tool performs best in the hands of an experienced worker who knows how to use it).
  • Concrete sets up relatively quickly. Once it starts to harden, it’s difficult to apply the stamps.
  • A mistake in concrete is permanent.
You can rent concrete stamps at rental outlets and concrete supply stores for about $25 per day per stamp. Doing your own work saves 20% to 50% of the cost of a professionally installed slab and stamped concrete finish.

Any Drawbacks to a Stamped Concrete Patio?

Very few:
  • Deep depressions. Although stamped concrete is a good choice for ADA accessibility, be wary of deeply embossed patterns; all that texture may be tempting, but it creates uneven surfaces that make patio furniture wobble and may be hazardous for those with limited mobility. Accessibility guidelines require bumps and ridges on walking surfaces be no more than ¼-inch high.
  • Fair-weather color. Although you’ll have more color options with surface colorants, the colorants may flake off over time. Have your concrete dyed while it’s being mixed for a more permanent solution.
  • It’s got a ‘tell’. As good as stamped concrete may look, aficionados of real brick and stone will know the difference.
Can I Add a Stamped Finish to an Existing Patio Slab?
Yes you can, as long as your old slab is stable and in good condition. You’ll be raising the height of the old slab by an inch or so, so you’ll want to make sure the new level doesn’t interfere with existing steps or vents in your foundation walls. The new concrete shouldn’t touch your siding, either.

A pro will prepare the existing slab by cleaning it and covering it with a bonding agent that ensures good adhesion between the old concrete and the new. Then, your contractor will cover the old slab with new concrete, and apply the stamps.

Source: Why You Should — or Shouldn’t — Use Stamped Concrete By: John Riha
Read more:  http://www.houselogic.com/home-advice/patios/stamped-concrete-patio/#ixzz2ZWE2GLoG.Visit HouseLogic.com for more articles like this. Reprinted from HouseLogic.com with permission of the NATIONAL ASSOCIATION OF REALTORS®  

Going Green in Housing

Green building is moving into the mainstream. About one in five homes — or 20 percent — built last year were “green,” according to a study by McGraw Hill Construction. What’s more, researchers predict green homes to make up 29 percent and 38 percent of new homes by 2016.

Energy efficient home features are becoming nearly standard practice among some homebuilders nowadays. Many builders see “green” as a way to compete against existing homes, boasting it as a way for home owners to save money on utility bills.

Even in a down economy, home owners have showed a willingness to spend more for green features, according to a separate McGraw-Hill Construction study.

While the thirst for “green” homes is growing, buyers will have to pay more for it.

Nexus Energy Homes COO Bruce McIntosh told The Wall Street Journal that green homes cost about 5 to 10 percent more than homes that aren’t “green.” However, McIntosh notes, material and construction costs for energy-efficient building are on the decline, which may help open the doors more to green building.
Also, home owners hope that green home features will lead to a higher sales price when they go to sell too.

Studies have shown that home owners can see higher sales prices when they go to sell if they’re home boasts green features. For example, last year, researchers from the University of California found that green-certified California homes netted 9 percent more than a comparable house without a green label. Green-certified single-family homes sold for $34,800 more than comparable non-green certified homes, according to the study.

Source:Realtor Magazine
n the wake of a month where consumers’ confidence in home prices remained strong even as mortgage rates leaped, more Americans may rush to buy in order to capitalize on still favorable market conditions, Fannie Mae’s chief economist said about the results of Fannie Mae’s June 2013 National Housing Survey - See more at: http://www.inman.com/2013/07/08/rising-mortgage-rates-could-push-up-housing-demand/#sthash.RHLzIW1U.dpuf

Rising mortgage rates could push up housing demand

Tight inventory may limit impact on sales
Growth in real estate image via Shutterstock.Growth in real estate image via Shutterstock.
In the wake of a month where consumers’ confidence in home prices remained strong even as mortgage rates leaped, more Americans may rush to buy in order to capitalize on still favorable market conditions, Fannie Mae’s chief economist said about the results of Fannie Mae’s June 2013 National Housing Survey.
“The spike in mortgage rate expectations this month seems to have had an impact on a number of the survey’s indicators and may increase housing activity in the near term by driving urgency to buy,” said Doug Duncan, senior vice president and chief economist at Fannie Mae.
“Consumers may recognize that today’s still favorable mortgage rates and homeownership affordability levels will recede over time. Given rising home and rental price expectations and improving personal financial attitudes, more prospective homebuyers may be deciding that now is the time to get off the fence.”
With the average rate on a 30-year fixed-rate mortgage rising by well over one percentage point from early May to the end of June, the share of consumers who believed mortgage rates will increase jumped by 11 percentage points to a record high of 57 percent in June, according to Fannie Mae’s survey.
But despite growing belief in a development that would chip away at affordability, the survey still found that the share of respondents who believed home prices will go up in the next year hit a survey high of 57 percent, while those who believed that home prices would go down remained flat at a survey low of 7 percent.
Still, the average 12-month home price change expectation fell marginally from last month’s survey high of 3.9 percent to 3.8 percent, Fannie Mae reported.
Article continues below
Likely reflecting a recognition that rising mortgage rates may erode affordability, the share of survey respondents who believe that now is a good time to buy fell from 76 to 72 percent, while the share who say now is a good time to sell dropped from 40 to 36 percent.
Though increasing rates could spur some buyers to pull the trigger, today’s inventory shortage could continue to hold back home sales, Trulia Chief Economist Jed Kolko recently tweeted.
“People might want to buy before rates rise, but tight inventory makes it hard to find what you want fast,” he said.
- See more at: http://www.inman.com/2013/07/08/rising-mortgage-rates-could-push-up-housing-demand/#sthash.RHLzIW1U.dpuf

Rising mortgage rates could push up housing demand

Tight inventory may limit impact on sales
Growth in real estate image via Shutterstock.Growth in real estate image via Shutterstock.
In the wake of a month where consumers’ confidence in home prices remained strong even as mortgage rates leaped, more Americans may rush to buy in order to capitalize on still favorable market conditions, Fannie Mae’s chief economist said about the results of Fannie Mae’s June 2013 National Housing Survey.
“The spike in mortgage rate expectations this month seems to have had an impact on a number of the survey’s indicators and may increase housing activity in the near term by driving urgency to buy,” said Doug Duncan, senior vice president and chief economist at Fannie Mae.
“Consumers may recognize that today’s still favorable mortgage rates and homeownership affordability levels will recede over time. Given rising home and rental price expectations and improving personal financial attitudes, more prospective homebuyers may be deciding that now is the time to get off the fence.”
With the average rate on a 30-year fixed-rate mortgage rising by well over one percentage point from early May to the end of June, the share of consumers who believed mortgage rates will increase jumped by 11 percentage points to a record high of 57 percent in June, according to Fannie Mae’s survey.
But despite growing belief in a development that would chip away at affordability, the survey still found that the share of respondents who believed home prices will go up in the next year hit a survey high of 57 percent, while those who believed that home prices would go down remained flat at a survey low of 7 percent.
Still, the average 12-month home price change expectation fell marginally from last month’s survey high of 3.9 percent to 3.8 percent, Fannie Mae reported.
Article continues below
Likely reflecting a recognition that rising mortgage rates may erode affordability, the share of survey respondents who believe that now is a good time to buy fell from 76 to 72 percent, while the share who say now is a good time to sell dropped from 40 to 36 percent.
Though increasing rates could spur some buyers to pull the trigger, today’s inventory shortage could continue to hold back home sales, Trulia Chief Economist Jed Kolko recently tweeted.
“People might want to buy before rates rise, but tight inventory makes it hard to find what you want fast,” he said.
- See more at: http://www.inman.com/2013/07/08/rising-mortgage-rates-could-push-up-housing-demand/#sthash.RHLzIW1U.dpuf

Rising mortgage rates could push up housing demand

Tight inventory may limit impact on sales
Growth in real estate image via Shutterstock.Growth in real estate image via Shutterstock.
In the wake of a month where consumers’ confidence in home prices remained strong even as mortgage rates leaped, more Americans may rush to buy in order to capitalize on still favorable market conditions, Fannie Mae’s chief economist said about the results of Fannie Mae’s June 2013 National Housing Survey.
“The spike in mortgage rate expectations this month seems to have had an impact on a number of the survey’s indicators and may increase housing activity in the near term by driving urgency to buy,” said Doug Duncan, senior vice president and chief economist at Fannie Mae.
“Consumers may recognize that today’s still favorable mortgage rates and homeownership affordability levels will recede over time. Given rising home and rental price expectations and improving personal financial attitudes, more prospective homebuyers may be deciding that now is the time to get off the fence.”
With the average rate on a 30-year fixed-rate mortgage rising by well over one percentage point from early May to the end of June, the share of consumers who believed mortgage rates will increase jumped by 11 percentage points to a record high of 57 percent in June, according to Fannie Mae’s survey.
But despite growing belief in a development that would chip away at affordability, the survey still found that the share of respondents who believed home prices will go up in the next year hit a survey high of 57 percent, while those who believed that home prices would go down remained flat at a survey low of 7 percent.
Still, the average 12-month home price change expectation fell marginally from last month’s survey high of 3.9 percent to 3.8 percent, Fannie Mae reported.
Article continues below
Likely reflecting a recognition that rising mortgage rates may erode affordability, the share of survey respondents who believe that now is a good time to buy fell from 76 to 72 percent, while the share who say now is a good time to sell dropped from 40 to 36 percent.
Though increasing rates could spur some buyers to pull the trigger, today’s inventory shortage could continue to hold back home sales, Trulia Chief Economist Jed Kolko recently tweeted.
“People might want to buy before rates rise, but tight inventory makes it hard to find what you want fast,” he said.
- See more at: http://www.inman.com/2013/07/08/rising-mortgage-rates-could-push-up-housing-demand/#sthash.RHLzIW1U.dpuf

How Long Will That Appliance Last?


Depending on the item in question, many factors can affect its longevity. For example, what’s it made of? How has it been maintained? Does it just lie there or does it have a lot of moving parts?

Average life expectancy in years of a thermostat and a compactor, respectively the longest-lived and shortest-lived appliances in the American home, according to the National Association of Home Builders/Bank of America Home Equity Study of Life Expectancy of Home Components. (See the table below for an alphabetized list of appliances.)

Keep in mind that the life expectancy listed here is just a general guideline—depending on the model and brand of appliances you buy and how well you treat them, your gear might last longer or might need replacing even sooner.

Appliance Life Expectancy (years)
Air Conditioners (room) 10
Air Conditioners (central) 15
Boilers (electric) 13
Boilers (gas) 21
Compactors 6
Dehumidifiers 8
Dishwashers 9
Dryers (electric and gas) 13
Freezers 11
Furnaces (electric warm air) 15
Furnaces (gas warm air) 18
Furnaces (oil warm air) 20
Garbage Disposers 12
Humidifiers 8
Microwave Ovens 9
Range/Oven Hoods 14
Ranges (electric) 13
Ranges (gas) 15
Refrigerators 13
Refrigerators (compact) 9
Thermostats 35
Washing Machines 10
Water Heaters (electric) 11
Water Heaters (gas) 10
Water Heaters (tankless) 20+

 Source:Consumer Reports

12 Tips for a Successful Garage Sale



Garage sales can be a great way to get rid of clutter — and earn a little extra cash — before you sell your home. But make sure the timing is right. Garage sales can take on a life of their own, and it might not be the best use of your energy right before putting your home on the market. Follow these tips for a successful sale.



1. Don’t wait until the last minute. You don’t want to be scrambling to hold a garage sale the week before an open house. Depending on how long you’ve lived in the home and how much stuff you have to sell, planning a garage sale can demand a lot of time and energy.



2. Get a permit. Many municipalities will require you to obtain a special permit or license in order to hold a garage sale. The permits are often free or very inexpensive, but still require you to register with the city. If you live in a subdivision with a homeowner's association, make sure you know the rules governing garage sales and abide by them.



3. See if neighbors want to join in. You can turn your garage sale into a block-wide event and lure more shoppers if you team up with neighbors. However, a permit may be necessary for each home owner, even if it’s a group event.



4. Schedule the sale. Sales on Saturdays and Sundays will generate the most traffic, especially if the weather cooperates. Start the sale early, 8 a.m. or 9 a.m. is best, and be prepared for early birds.



5. Advertise. Place an ad in free classified papers and Web sites, and in your local newspapers. Include the dates, time, and address. Let the public know if certain types of items will be sold, such as baby clothes, furniture, or weightlifting equipment. On the day of the sale, balloons and signs with prominent arrows will help to grab the attention of passersby.



6. Price your goods. Lay out everything that you plan to sell, and attach prices with removable stickers. Remember, garage sales are supposed to be bargains, so try to be objective as you set prices. Assign simple prices to your goods: 50 cents, 3 for $1, $5, $10, etc.



7. If it’s really junk, don’t sell it. Decide what’s worth selling and what’s not. If it’s really garbage, then throw it away. Broken appliances, for example, should be tossed. (Know where a nearby electrical outlet is, in case a customer wants to make sure something works.)



8. Check for mistakes. Make sure that items you want to keep don’t accidentally end up in the garage sale pile.  



9. Create an organized display. Lay out your items by category, and display neatly so customers don’t have to dig through boxes.



10. Stock up on bags and newspapers. People who buy many small items will appreciate a bag to carry their goods. Newspapers are handy for wrapping fragile items.



11. Manage your money. Make a trip to the bank to get ample change for your cash box. Throughout the sale, keep a close eye on your cash; never leave the cash box unattended. It’s smart to have one person who manages the money throughout the day, keeping a tally of what was purchased and for how much. Keep a calculator nearby.



12. Prepare for your home sale. Donate the remaining stuff or sell it to a resale shop. Now that all of your clutter is cleared out, it’s time to focus on preparing your house for a successful sale!

5 Factors That Affect Your Credit Score




Credit scores range between 200 and 800; however scores above 620 are considered desirable for obtaining a mortgage. The following factors affect your score:

1. Your payment history. Did you pay your credit card obligations on time? If they were late, then how late? Bankruptcy filing, liens, and collection activity also impact your history.


2. How much you owe.  If you owe a great deal of money on numerous accounts, it can indicate that you are overextended. However, it’s a good thing if you have a good proportion of balances to total credit limits.

3. The length of your credit history. In general, the longer you have had accounts opened, the better. The average consumer's oldest obligation is 14 years old, indicating that he or she has been managing credit for some time, according to Fair Isaac Corp., and only one in 20 consumers have credit histories shorter than 2 years.

4. How much new credit you have. New credit, either installment payments or new credit cards, are considered more risky, even if you pay them promptly.

5. The types of credit you use. Generally, it’s desirable to have more than one type of credit — installment loans, credit cards, and a mortgage, for example.

For more on evaluating and understanding your credit score, visit www.myfico.com