How long for credit to recover after refi?

[Anonymous]

My husband and I are in the process of refinancing. We bought our home for 125k in 2011. We owe 112k but we also took out a second mortgage to do work on the house in 2013. That balance is 20k. We are refinancing to roll the two mortgages into one and also pay off about 20k of misc debt. We are taking out a loan for 167k and we just got appraised for 223k today.

After the refi, our debts will be the one mortgage, two car loans under 10k each, and about 5k in cc debt (all interest free, about 5% utilization).

Out credit scores weren't the best right now because of the debt we ran up in the last two years. I just went back to school and the change in income has been hard to adjust to but we are straight now. Anyway, scores around 675. We are refinancing with NFCU. We didn't get a fabulous interest rate (5%) and had to take a 30 year because we are essentially single income while I am in school. I'm wondering how long it'll take for all the dust to settle and for us to hover closer to 800? We hope to refi into a 15 year once I graduate and have a real income but I'm not sure how many mortgages is too many. This will essentially be our third closing in about 4 years. Yikes. Is anyone going to refinance us in a year to 18 months? Specifically, Navy?

Thanks in advance!!

[takeshi74]

There isn't a fixed timeframe.  It's not just a matter of the action (the refinance in this case) but one's existing credit as well as the action.  If factors were preventing your scores from reaching 800 before the refinance then those factors still matter.  I don't recommend relying on time but looking at your credit.  Any score is generated based on data from a report.  In order for a score to improve the report has to improve.  You need to understand what's holding you down and when that will change and that requires analysis of the data in your reports.

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@Anonymous wrote:
Out credit scores weren't the best right now because of the debt we ran up in the last two years.

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If that's the cause or at least a contributing factor then when will that change?  When will your debt be brought back down?  What types of debt?  What's your revolving utilization?