Depending on the amount of credit you have available, closing credit card accounts can affect your credit score, Hackett explains.But on the other hand, having maxed out the limit on your credit cards also hurts your score.
If you are trying to get the maximum loan amount, which is generally 85 percent of the value of the home, you should expect to need a credit score of at least 700, he says.
Consolidating the two into a new, 30-year mortgage at 4.5 percent saves about 4 a month.
Consolidating the two into a new, 15-year mortgage at 4.5 percent costs more per month, but less over the life of the loan.
A ,000 credit card balance at 16 percent interest plus a 0,000 mortgage at 4.5 percent interest rack up 0,936 in interest payments over the life of the loans.
Consolidating the two into a new, 30-year mortgage at 4.5 percent saves about ,642 in interest.
“Be very responsible and diligent,” Harper advises.