The higher your utilization rate… the lower your credit score. The credit scoring models view this as you getting closer to maxing out your credit lines and becoming a higher risk.

If your credit limit is cut by your credit card issuer and has caused your credit utilization measure to drop, it subsequently lowers your credit score without you doing anything on your part.

If, however, your credit card company reduces your credit line on a credit card that you do not carry a balance on… then there is virtually no impact to your score.

Have you had credit lines decreased through no fault of your own? Let us hear about it. Click the comment link below and sound off. Your email address is NEVER published on this site, even though it is required (to prevent spam bots from posting here) to post your comment. We'd love to hear from you about this credit card limit lowering situation.

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A HECM is a reverse mortgage that is insured by the FHA. It is designed to enable elderly homeowners (62 years or older) to borrow against the equity in their home without having to make monthly payments as is required with a traditional mortgage or home equity loan. Under a reverse mortgage, the borrower receives the funds as they wish in either a lump sum payment, monthly payments over time or on a “as-needed” basis, with the interest on the loan accruing and increasing the loan amount, but the outstanding balance is not due until the last borrower leaves the home, sells or passes away. One of the great things about a reverse mortgage with regard to the borrowers heirs is, if the balance due upon settlement of the loan exceeds the value of the home, the FHA insurance covers the difference.

The department’s plans to implement a new variant of the product, referred to as the “HECM Saver,” that will provide seniors with a reverse mortgage option that significantly lowers upfront costs by virtually eliminating the upfront Mortgage Insurance Premium that is required under the standard HECM option. There will be changes to the existing HECM loan as well (now referred to as a “HECM Standard.) The introduction of the HECM Saver and changes to the HECM Standard are expected to be effective this October.

The cost saving in upfront fees is able to be achieved because the amount of money available to a borrower, an amount known as the “principal limit,” under a HECM Saver will be reduced, substantially lowering the risk to the FHA insurance fund. Borrowers will receive approximately 10% to 18% less under the HECM saver option, than they would under the HECM Standard option.

Your first step is to save for the down payment. The more money you are able to put down, the greater your chances of being able to negotiate a lower price for your home. Also, you’ll be able to save more on your mortgage.

A good rule of thumb when purchasing a home is to have at least 20% of the total value (if not more) for your down payment. You’ll also need some extra funds for the closing of the house.

Start saving now, don’t procrastinate. Put the money you are saving for a home aside so you don't spend it, by putting it in a savings account. Try to find a bank with a good compound interest rate for it’s saving accounts so while that money is being stowed away and saved, you are earning a little interest on it as well.

If your salary is not enough to save up for the house, consider the possibility of a second job. That salary, a long with the 20% you are saving will be a big help financially when getting ready to buy the house.

Remember, even while you are saving, you need to also keep up with bills you already have. Staying financially stable while saving for your house is important, as it will have a major impact on your credit score, and eventually your mortgage approval or not.

With these simple steps, you will be on your way to buying the house of your dreams.

Have any unique back-to-school savings ideas you'd like to share with our readers? We'd love to see 'em! Just click the 'comment' link below and tell us about them.