Thinking about refinancing to decrease DTI

[Anonymous]

Matter of fact, it just came to me today to do this. Just purchased a 2009 Yukon in November. My payment is $463 mo. at 9%.  We are currently in the process of selling some land, so if everything works out in the next 2-3 weeks, I'd like to pay $10,000 on it, which brings it down to around $15,000 and refinance this for a much smaller monthly payment, which would significantly decrease my DTI. My credit cards are all paid up except one. Is it too soon to go for a refinance after 4 months? March would be earliest to start on this. Also, my Auto scores are 605, 621, 652 BEFORE my cards were paid off. MyFICO 8 scores are increasing around 10-13 points apiece with each card reporting. I have 3 more to go this month to report so that could be another 20-30 point increase by the end of the month. So I expect those scores to increase as well if I order another 3B report before refinancing. 

Does this sound good?

[StartingOver10]

Sounds like an excellent plan! No, it isn't too early to refinance especially since you are putting down a large amount to refinance a smaller principal and you are increasing your scores. Are you planning to go through a credit union for your refi?

[Anonymous]

Good question! I have no idea who to try as of yet since I just thought of this yesterday. Do you have any idea what score I should shoot for or are those scores pretty good already to go for a refinance? I'm meaning the Auto Scores? Or do Auto Lenders pull the Fico 8 scores?

[Creditaddict]

I would join DCU and apply there.

[Anonymous]

DCU? What is that? We are with Jax Federal which is a Credit Union but we don't do much activity with them account wise. Not sure if that is a factor in getting approved. 

[undrtkr65]

DCU is digital federal credit union. I got approved through them to refinance my car at 6.24 for up to 60 months but I can't qualify for membership due to my chexsystems report. Darn chexsystems. I also got approved through a local credit union for 8.99 for 48 months. I already have a membership through them. When DCU pulled my credit they came back with 630 score but when local credit union pulled a week later came back with 589. The only thing changed was my installment loan updated to paid. That's a huge drop in my score in a weeks time. Both pulled Equifax. Good luck on yours.

[Anonymous]

Dcu uses eq5, 677 got me 2.74 with them, 700 gets you 2.24 and 730 gets you 1.99. With your installment uti shifting your scores should skyrocket quite a bit.
Anyone can join with a $10 donation. I had a 180 day late payment 2 years ago to the day of my app with dcu.
Applied later in the day, approved the next morning with a 1minute phone call, instant membership opening for their checking, I'm one of the fortunate ones who didn't have to verify anything. They seem great and helped me get a great deal on an FRS.

Coupe things, your fico5 is what matters for dcu of you go that route(I recommend it). 66?% I think is what the aggregate uti breakpoint is where you get a boost(this is a moot point if the payment on the car doesn't shift much because of a mortgage).
And yes you can refinance after 1 day, 10 days, 2 years, 2 days. Whenever. =) whatever the right time is for you

[Anonymous]

Kuma that's excellent knowing they use Equ.  myFICO5 with them is the 621 before the pay downs, so hopefully I will see a nice 20-30 point boost on that by March 3rd. Then I'll see what the Bank needs me to do, but I'm sure I'll need to refinance. And a 2.7% is really nice if I can get that. That's exactly the kind of rate I'm looking for lol