02-17-2012 09:34 PM - edited 02-17-2012 09:37 PM
I am looking to buy a house this year and want to get the best rate possible. Right now my FICO score is 668. This is due to high balance to limit. I will be paying these off in the next two months. Using the FICO estimator, after their paid off it suspects the score to end up in the 698-740 range. Here is my status:
Discover 3000 limit Balance 0
Capital One 4500 limit Balance 4200
Capital One 2500 limit Balance 2200
HSBC Best Buy 1150 limit Balance 0
Old Navy 500 limit Balance 0
Student Loan 71 Monthly 9000 Balance
ATV Loan 198 Monthly 7000 Balance
Ally Auto 494 Monthly 18500 Balance
If I trade the vehicle in (08 chevy silverado, crew, z71) for a newer, cheaper vehicle (12 jeep wrangler) will this give my score a boost at all seeing as my monthly payments will be cheaper? I know the inquiries will take a hit and the AAoA but what do you think the overall affect will have in say 6 months?
02-17-2012 11:52 PM
02-18-2012 06:30 AM - edited 02-18-2012 06:30 AM
Since we don't have your income we don't have enough info to calculate your ratios. Have you calculated your ratios yet, both front and back end?
For the front end use the tax, ins, P&I and MIP/PMI (if applicable) for a house/property in your desired area of purchase.
If you have a too much installment debt, it will show up by affecting the amount you can purchase by affecting your front end ratio.
If so, you can help it by paying off the ATV or selling it.
02-18-2012 07:37 AM - edited 02-18-2012 07:47 AM
I brought home 60k for 2010 and 67k for 2011. I also just got promoted and will be bringing home a little more this year. Sorry for not including this earlier and thank you for you help!!!!
02-18-2012 07:58 AM
Haven't gotten that far yet. Started with FICO score and getting it to best possible place. Once its there and while its on the way I will research the financing possiblities. I just didn't know if the $100 off the vehicle monthly payment would have an affect on the mortgage calculation. My first priority would be a nice home versus having a nice vehicle. With both leaving me in the "comfortable" range of monthly payments.
02-18-2012 11:01 AM - edited 02-18-2012 11:02 AM
This has been moved to the Mortgage page under "front end, back end, ratios?" since it mainly pertains to that now. Thanks!!!
Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.† Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
* For complete information, see the terms and conditions on the credit card issuer’s website. Once you click apply for this card, you will be directed to the issuer’s website where you may review the terms and conditions of the card before applying. While myFICO always strives to present the most accurate information, we show a summary to help you choose a product, not the full legal terms - and before applying you should understand the full terms of products as stated by the issuer itself.
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more
FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.