My 75 year old mother inherited her mother's house a couple of years ago. Actually she inherited it with her sister, and then bought her sister out. It was a much nicer home than she was living in, plus my grandparents built it in 1945 and it has a lot of sentimental value so my mother wanted to keep it and live in it. With a reverse mortgage she was able to take a lump sum to pay off her sister, plus she has a line of credit she can use to make repairs to the house as needed. She has enough money invested for her normal expenses, but was worried that a house that age would really nickel and dime her. As she puts it the reverse mortgage lets "the house take care of itself." My siblings and I aren't concerned about there being any value left in the house when the time comes for her to live elsewhere, and it's really the best place for her to live right now - walking distance to town and a university with an elder-education program.

If you pay down your CC debt you'll see a change in your score in one or two months - depending on when the cc company makes their reports. Whatever the balance is when they prepare your monthly statement is the balance reported - even if you pay that balance off in full. I would try to knock down the cc debt to 30% or less - there's nothing magic about 25% or any other percent really. 50% or less isn't too terrible, but this portion of your score accounts for about 30% of the total score overall, so the less the better. This is all very general though. Many different things are taken into account when determining your score, and many things besides your 3 scores are taken into consideration by lenders - it's not a matter of one thing being cared about more than another, it a matter of your overall financial picture. My advice to you is to wait until you've paid down your cc debt and also make sure you have an emergency fund in place - not only so that you can take care of yourself should you lose your job or become ill, but also so you can pay for the many emergencies that can befall a home. You can expect to pay an amount about equal to one monthly payment just on yearly maintenance alone - not counting any repairs or emergencies - and much more for an older home. Plus home owners insurance and taxes and possibly higher utility bills than you are paying while renting. That you cannot both save for a down payment and pay off your debt tells me that you probably aren't yet ready for home ownership. Also, debt on one cc and a car loan don't account for such a low score (I assume that's an average of the 3 scores? 700 would be like a B- or C, low-good) - have you fixed whatever caused that score? Is it simply a short credit history ? (in general, it not good to close out an account unless it's fairly new and charges an annual fee) Most of all, most important to your scores, is to never, ever make a late payment on any bill - includes phones and utilities, etc. Have you thought about getting a 2nd job clerking or waitressing or something like that? You could save a great deal in a very short time. In just 6 months you could earn that 10% down payment and still be paying down your cc debt with your regular income. My husband and I each worked a 2nd job in order to save for our first home on the schedule we wanted - it was hard, but fun and exciting, too. On the brighter side - you can request that the PMI be removed once your home equity is high enough - so if the value of your home rises then that PMI may not last longer than a couple of years. Just remember that it's not getting into the home that you should be most concerned about - it's being able to stay in the home while remaining financially solvent - you want to be able to pay yourself (emergency fund, retirement), pay your bills, save for big ticket items (like a home, newer car, furniture, vacations), have some fun, and invest.

What are the different types now? Are they radically different then what it was five years ago? The market has changed drastically with all the failures and write-offs. We are now looking for a second home, and have the 20%+ cash for the downpayment [not subject to the sale of our first home]; this time we are thinking of either a 7/1 ARM or a 30- year fixed, maybe pay a point or so, and some closing costs. When I last looked for mortgage, in 2004, it used to be 30- or 15- years fixed, or libor based ARMS such as 3/2 and 5/1, and often piggyback with a HELOC loan. We ended up financing it that way, 80% 5/1 ARM at 4.375, 10% HELOC at prime and 10% downpayment, but we rolled the closing into a no-closing-cost loan since we were cash strapped. We paid off our HELOC very aggressively, so didn't lose much money once the rates increased. Just don't know what I should be avoiding now, or seek out. What indexes are the ARMs mostly tied to? In 2004, it was very difficult for me to find an ARM tied to naything but the LIBOR. Is that still okay for an ARM, or should I be looking at something else?

From myfico.com How much will credit inquiries affect my score? The impact from applying for credit will vary from person to person based on their unique credit histories. In general, credit inquiries have a small impact on one's FICO Scores. For most people, one additional credit inquiry will take less than five points off their FICO Scores. For perspective, the full range for FICO Scores is 300-850. Inquiries can have a greater impact if you have few accounts or a short credit history. Large numbers of inquiries also mean greater risk. Statistically, people with six inquiries or more on their credit reports can be up to eight times more likely to declare bankruptcy than people with no inquiries on their reports. While inquiries often can play a part in assessing risk, they play a minor part. Much more important factors for your scores are how timely you pay your bills and your overall debt burden as indicated on your credit report. Does the formula treat all credit inquiries the same? No. Research has indicated that FICO Scores are more predictive when they treat loans that commonly involve rate-shopping, such as mortgage, auto and student loans, in a different way. For these types of loans, FICO Scores ignore inquiries made in the 30 days prior to scoring. So, if you find a loan within 30 days, the inquiries won't affect your scores while you're rate shopping. In addition, FICO Scores look on your credit report for rate-shopping inquiries older than 30 days. If your FICO Scores find some, your scores will consider inquiries that fall in a typical shopping period as just one inquiry. For FICO Scores calculated from older versions of the scoring formula, this shopping period is any 14 day span. For FICO Scores calculated from the newest versions of the scoring formula, this shopping period is any 45 day span. Each lender chooses which version of the FICO scoring formula it wants the credit reporting agency to use to calculate your FICO Scores.