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New account...old user. Hopefully I can get some good advice from the experts here. I am hoping to refinance my mortgage and have some questions about how to proceed.
Salary: 78K/year..solid employment in the medical field. Same employer for the past 8 years
Scores at the moment: Mid score is 690, clean report with no negatives on any. My scores have dropped due to high utilization of CC
DTI: high (75%)
I built and closed on my house in Nov 2018.
Value: $400,000 (give or take a few thousand) I put 20% down to avoid PMI
Current interest rate 5.25% 😕
By the end of this month, I will have paid off 32K in CC debt. I will have an additional 20K left on my reports but on cards with high CL's so my utilization will be low on the ones that are left.
Other monthly obligations:
Car #1 $657/month
Car #2 #330/month
CC's: $400/month (remaining 20K that is left over..this is an estimation but should be pretty close)
So here is what I am hoping will happen (keep in mind...could be very different from reality as I really don't have a lot of knowledge about this) That's why I am here.
I am hoping to wait until June to start the refinance process once all the cards that I am paying down have a chance to update to zero balances. What are the chance my scores would boost up to the 740+ mark (wishful thinking??) I want to pull out some of the equity to pay the remainder of the CC's, would this be an option or advisable? I assume that if pulling money out leaves less than 20% equity in the house then I would have to start paying PMI...is that correct?
Am I taking a risk waiting until June? Although to be honest I doubt I will be approved which my current DTI.
What are the chances of me getting approved at all?
Is there anything else I should be considering?
I will say that I am working two jobs at the moment which is how I am paying down my cc debt. Its only a six week contract but pretty lucrative. Will that income factor in to my DTI?
Short Answer: It saves you a lot of money
According to a recent research from Freddie Mac, the average borrower could save $1,500 just by getting one extra rate quote when applying for their mortgage. With five quotes, they could save $3,000 or more.
Wow, so I should really do it. But how exactly should I do mortgage shopping?
Preparation: Estimate your mortgage rate
There is an old Chinese saying from The Art of War that “If you know your enemies and know yourself, you will not be imperiled in a hundred battles.” That’s exactly why this step matters. Having a rough idea of what interest rate you can expect is crucial for you to play well in this game.
There are many factors that determined your interest rates including base rate (update daily), loan amount, location, LTV (loan to value ratio), credit score, house type (single family vs condo) etc.
So to help yourself estimate, you can talk to your friends who have done mortgage recently and ask about their rates and how they get them. There are also some anonymous mortgage reporting site (such as rate.exposed) to get more data point. Keep in mind the best way to estimate your rates is comparing with people with similar cases.
Now, let’s pick up the phone and start dialing
You can follow the steps here:
Call 5 lenders, ask them to quote and write the numbers down Find the best quote from the 5 lenders, let’s call it lender A Call the rest 4 lenders again asking them to match (or even beat) the quote from lender A. If you get a quote better than lender A, go back to step 2 and step 3 to call the rest to match Until the number can’t go lower and the rate is within your expectation.
Extra Tip 1: Ask for special program
Different lenders have different promotional program. For example, Wells Fargo has relationship discount where for every $250k asset you move to WF bank account, you get your rate reduced by 0.125%.
You might just save yourself $10k but just a simple ask
Extra Tip 2: Credit Hard Pull
Many people are worried about hurting the credit scores by having too many lenders hard pull your credits. In fact, if you do them within a short period of time, multiple credit inquiries will combine to count as only one.
Also, if you know your credit score in advance, you can simply just ask them not to pull and tell the lender the number. That should be more than enough for lenders to come up with a quote for you.
Extra Tip 3: Pay attention to fees
Some lenders do the trick to lower your interest by increasing some less obvious fees including closing costs, points, etc. So whenever you get a mortgage quote, always look at the full picture before making any decision.
I've been a member here for years and this site has helped me immensely!! This is the first time I have posted a question because I wasn't able to find an answer in the search. I am trying to refi my property but my credit scores are too low because of high balances on my credit cards. Score is 603 and all payments have been made on time and never missed (need to raise my credit score close to 700 for refi). Most of my cards are close to limit. I just received a personal loan of $44,000 to pay down my cc's but now I'm wondering which route to take: Do I pay off a few CC's or do I pay down the balances of multiple credit cards? I need to raise my credit score as quickly as possible and I'm not sure which way would help raise my credit scores the fastest? I'm trying to do this in the next week or two and do a rapid score at the end of the month. Thanks in advance for any advice!
$14,000 Limit - Balance $13,549
$8,300 - Balance $8170
$1400 - Balance $1583
$15,190 - Balance $14,883
$16,700 - Balance $16,810
$6000 - Balance $9613
$7126 - Balance $6740
$5000 - Balance $5000
$32,000 - Balance $31,720
I tried to do a FHA refi on a first mortgage that has never been late and a second with no payments in many many years.
Well the FHA now requires all mortgages on the property too have a on time 12 month history.
I am already in the process of my attorney working on a modification of the second defaulted loan.
But we want too have a back up. Any ideas of other refi loans that this wouldn't be a issue with?
I went ahead and dove into the new truck (previous posts debating back and forth etc). I will sell the used truck on craigslist/hoping to come out better than the $800-$1k the dealership mentioned.
I prequalified through CapOne first, $35k at 7.85%. Truck cost more so I ended up with 9.99% at PNC. CapOne would not go up the few grand which I understand. My credit scores (fico 8 ) are 624 to 636 but of course different with the versions used for auto financing. Understanding where my credit sitrep stands I was ok with the CapOne 7.85%.
Updating my goal board as to when I should target refinancing the auto loan? I have over 10 inquires, only 3 offers (3rd was way higher); so lesser of the weevils (Master and Commander movie reference...lol). DCU keeps popping up in financing/refinancing successes with challenged credit in my searches. Just looking for advice on how long to wait (3-6-12 months etc), who to try at that point, pros/cons.
I thought of trying DCU now since still within the week of purchase and hoping that INQ gets counted in with the other batch. Any experience out there if CapOne would be interested in 5-6 months? I believe the installment payments will give a good boost to my scores since I don't have an open installment on one credit report and the other 2 list my Santander(not due off until beginning of 2020).
CapOne I have 2 credit cards (1 unsecure, 1 secure) and have done great ontime payments, one auto CLI etc within the last 6-7 months with them. I am keeping in mind another lesson on here of too many eggs in one basket; but I think they were better in the offerings above for the relationship of on-time payments/usage this year/rebuilding.
(hope this is not a double post as I had to log back in and resubmit)