Info: changes in credit score math

When people talk about their credit score in the context of a home loan, they generally are referring to the number provided by the Fair Isaac Corporation — known as FICO. That index isn’t changing.

However, three other credit tracking entities, Equifax, Experian, and Trans-Union, together operate VantageScore — and that is the one that is being tweaked in at least two important areas. One relates to closing inactive accounts — which had been at least informally known to affect credit scores negatively because one’s rating was based on current debt as a ratio of the total credit available. In the future, closing unused credit lines may affect credit scores positively or not at all.

In a more important way, the new formulas will assess ‘trending’ on the total debt — meaning one will be rated at least partially on whether the amounts owed are collectively going up or down. Those who are paying debt down will likely be looked upon as less risky than people who are still piling it on.

Read more here or here.

 

Fact: Is Naples huge or small?

The term “Naples” applies to two vastly different areas. Legally, Naples is a small incorporated city in the very south-western part of Collier County. Its population was estimated last year to be 20,600. It’s what we locally call “downtown” and includes some very luxurious waterfront communities such as Port Royal, Aqualane Shores, Park Shore, and The Moorings. Naples is but 14.4 of the 2025.5 square miles of Collier County — about 7 tenths of one percent!  Continue reading Fact: Is Naples huge or small?

Trending: larger garages.

I’ve heard estimates of up to one hundred as the number of new communities, assisted care facilities, and rentals coming out of the ground here in Naples. Driving by and through those that feature new home construction, one trend is apparent: more three-car garages than ever before. About one in four new houses offer more than two spaces.

Is that because families own more cars today than in the past? Statistics seem to refute that: fewer than one in five homes have to deal with three or more cars, only a small increase over 25 years ago.

One in three buyers now shop for listings with three-car garages, while half prefer two spaces. The one car garage is the choice of only one in 10 buyers.

Reasons are many, but one factor locally is the increasing number of multi-generational homes with either a young person returning home after college or children taking care of aging parents.

Source: “America Is Building More Three-Car Garages Than One-Bedroom Apartments,” Bloomberg (Oct. 26, 2016) and “Garages in New Homes: 2015 Data,” National Association of Home Builders (Oct. 21, 2016)

Rentals: what to expect.

With the 2017 ‘season’ now officially complete, seasonal renters are either renewing for next year or seeking to upgrade in a market that is reputed to be ‘very tight.’ As with most things, it’s all relative. A search of the local MLS-controlled public access sites for a January and February rental at a rate of between $2,000 and $4,000 per month in Naples, Marco, Ft Myers Beach, and Bonita-Estero — reveals about 100 properties.

Is that all there is? Well, no. Continue reading Rentals: what to expect.