I need Mortgage Refi advice please!?
by Mortgage Rates on Thursday, October 7th, 2010 | 6 Comments
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Difficult with that credit rating
BUT lenders are more willing to work with their own borrowers right now. . . .
SO I’d check out a local bank, see what your options are, then go to your current lender and see your options there, having something to compare what they offer
FICO does not look at Debt To Income. The credit bureaus don’t know how much you make.
With that being said, it is hard to say if you could refi because I don’t know what your joint income is. However, as long as you have no late mortgage payments and you income is ok, then you should refi. Also you can consider consolidating some of your credit cards if your D/I is an issue.
I work with situations like this all the time. Pay the first credit card that you mentioned down to $250.00 and pay the second that you mentioned down to $660.00. You will be a slam dunk for the refi after that.
The reason for this is that the scoring mechanism looks at your LTV, or Loan To Value(balance) and penalize you for having your balance, in relation to the limit, too high. Your score will jump quite a bit when you pay them down and you WILL get the loan.
Good luck!
Your score is hurting because your credit is “maxed out” (near their limits).
You can do the refi now, by all means. But with a score of 632 you are going to be restricted… while your payment history may be good, this score is considered ALT-A (a step above sub-prime) and most mortgage companies aren’t in that market anymore, they are all doing Prime. There are so many restrictions on ALT-A products now, its rediculous.
So, it could hurt you in the long run to get a refi done now, because you aren’t going to get the best deal. My advice would be to pay down some of the debt. Paying it down now may suck (for lack of a better term) but could save you thousands in interest down the road.
Plus when the banks look at your credit, its gonna ding your score down when they pull it… and if they cant offer you anything to your liking, then you are stuck shopping around having other places pull it too.
Unless refinancing is imperative right now – get that score up, baby.
If you have a 30 year mortgage and you’re half way thru, you paid about 70% of the interest. That’s how banks make their money. If it’s fairly new however, first call your mortgage co and see what they can do for you. If you’re not satisfied, then call a mortgage broker.
Hi,
I used “Credit Solution” to settle my debt and improve my credit score.They managed to reduce my debt up to 58%.It’s legitimate.I came across this company on NBC News Special Edition.Check it out here:
http://urlcut.com/1kvhf