Question Re: Lender's Tri-Merged CB Score Report

[swoosh]

My husband and I are currently contemplating refinancing our 15 year fixed first mortgage with our HELOC (which is currently fixed at 6% for 2 more years), but we don't want to worry that when it becomes adjustable, what the payments will/may jump to at that time. Since rates seem to be very low now, and our income/employment is good (although recently our credit cards have a high utilization), we thought we'd proceed with our local credit union (that gave us the HELOC). Another reason to refi now is to use the extra $$/month to pay off all credit cards we have. We have a good plan, it's just not moving fast enough. Have had several conversations with them, and it appears we can do a 85% LTV conventional loan (and it also appears as if we'll probably appraise that high, but unfortunately not at 80%), which means we'll need to do PMI for a year or two. The last best guess is that we're going to come in around 83% LTV, so we're so close, the PMI won't kill us. BUT ... my scores have fallen recently to 649 (not sure what EX would be because that's always been my highest score). If I can't get to 660 before we do this, the PMI is $50 higher a month (YIKES).

 

So here in lies my question. Does anyone (maybe Brian B.) know if the tri-merged Credit Bureau score report that mortgage lenders get usually come out higher or lower than the MY FICO scores that we can buy? Or is there really just no way to know? I just bought both of mine this week and I was at 649 and 641, respectively. My husband's scores (low 700's) don't seem to factor in to this too much ... just mine, obviously. We're going to have to pay PMI either way, for being at 83-85% LTV. Just trying to see if it makes sense to wait a bit to do this, or have our lender pull our scores now and let the chips fall where they may.

 

Either way, by May I'd guess, we're planning to pay a couple of my credit cards off, and DH is going to add me as an AU on one large line he has ($13K) that we never use (so it's usually at a $0 balance). So that will boost my scores.

 

Any advice on how the lender's report scores compare to My Fico's would be appreciated!

[Brian B The Loan Professor]

They are usually spot on with what we get.

B

[swoosh]

Thanks Brian!

[HappyAFWife]

Actually the Transunion score on our Trimerge report pulled by our lender was significantly different than the one we purchased from My Fico. Our Credco Trimerge Report used an Equifax Beacon 5.0 score (available for purchase on My Fico), the Transunion Classic 04 score (My Fico sells the old 98 version rather than the 04; 98 has been known to vary significantly from the 04 score - in our case the variance was 18 points) as well as the Experian Fico 2 (which you can't buy anywhere). From what I have read in my research, the Equifax Beacon, TU 04 and the Experian Fico 2 are the standard scores used by the majority of mortgage lenders (though some lenders may use an enhanced mortgage algorithm).

 

If you'd like more info about the different scoring models and where the TU 04 and Experian scores can be found (not purchased - you usually have to join a credit union or have a particular credit card that offers scores as a membership benefit ) look in the Credit Forum here.

[BananaTheDog]

Actually the Transunion score on our Trimerge report pulled by our lender was significantly different than the one we purchased from My Fico. Our Credco Trimerge Report used an Equifax Beacon 5.0 score (available for purchase on My Fico), the Transunion Classic 04 score (My Fico sells the old 98 version rather than the 04; 98 has been known to vary significantly from the 04 score - in our case the variance was 18 points) as well as the Experian Fico 2 (which you can't buy anywhere). From what I have read in my research, the Equifax Beacon, TU 04 and the Experian Fico 2 are the standard scores used by the majority of mortgage lenders (though some lenders may use an enhanced mortgage algorithm).

 

If you'd like more info about the different scoring models and where the TU 04 and Experian scores can be found (not purchased - you usually have to join a credit union or have a particular credit card that offers scores as a membership benefit ) look in the Credit Forum here.

 

 

Krull Mortgage pull TU = 675

 

MyFico pull TU = 703

 

That was my experience in November when I did a cash out FHA refi in November/December. EQ was exactly the same as MyFico though.

[swoosh]

Thank you all. Talked to our mortgage lender at the CU again and decided that since rates are so stable (give or take) right now, and we need to finish our basement remodel before we can have an appraiser in here (we're getting it carpeted next week, so we're very close), my husband's going to add me as an AU on a $13K CC he has that we never use (hoping that'll bump me some). He just did this yesterday (anyone want to tell me if putting you on as an AU will still affect your scores the same as the card actually being your own)?

 

Then he will be selling a project car he's been working on in the next week or two and I plan to pay off a couple of my credit cards, which hopefully will put me into the 660+ range. It makes a $50/month difference on our PMI. Then again, as I may have mentioned, in our case, unless something goes horribly wrong with our appraisal (and then we'll just be out the $350), the PMI's going to drop off pretty quickly as our lender thinks we're going to be near 83% LTV on a 15 year refi. The principal goes down pretty quickly on our current first mortgage, and hopefully, given how our fair market value went up by $5K from 2010 to 2011 (even though our taxes went down $150) we'll get to the 80% LTV to get rid of the PMI pretty quickly.

 

Thanks for everyone's answers, as always!

[BananaTheDog]

Thank you all. Talked to our mortgage lender at the CU again and decided that since rates are so stable (give or take) right now, and we need to finish our basement remodel before we can have an appraiser in here (we're getting it carpeted next week, so we're very close), my husband's going to add me as an AU on a $13K CC he has that we never use (hoping that'll bump me some). He just did this yesterday (anyone want to tell me if putting you on as an AU will still affect your scores the same as the card actually being your own)?

 

Then he will be selling a project car he's been working on in the next week or two and I plan to pay off a couple of my credit cards, which hopefully will put me into the 660+ range. It makes a $50/month difference on our PMI. Then again, as I may have mentioned, in our case, unless something goes horribly wrong with our appraisal (and then we'll just be out the $350), the PMI's going to drop off pretty quickly as our lender thinks we're going to be near 83% LTV on a 15 year refi. The principal goes down pretty quickly on our current first mortgage, and hopefully, given how our fair market value went up by $5K from 2010 to 2011 (even though our taxes went down $150) we'll get to the 80% LTV to get rid of the PMI pretty quickly.

 

Thanks for everyone's answers, as always!

 

 

I did an AU on a friends AMEX just before my refi because my EQ score would not go above 610 no matter what. The reason seemed to be my AAOA was at 1.7 yrs. I was worried that my middle score wouldn't be the 620 I needed. No way of finding my EX score I had to work on the EQ. Adding the 7 year old AMEX jumped me to 630 and we refi'd a month later. In the end it didn't matter, my middle score ended up being EX at 650.

[swoosh]

Hey Banana,

 

Thanks for the response. Hoping that will help in my case also!

 

Swoosh