I have a balloon mortgage due March '08 on my townhouse. I didn't plan on staying in my place this long (it was a 5 yr fixed loan with the balloon - I was very ignorant at the time, but looking back, really was a pretty good deal), but now think I probably will for another 2 or 3 years. So, I'll be refinancing...and probably this fall (I understand interest rates and election years are not kind, historically).
Last I checked (Feb '06 for an auto loan), my FICO's were in the 718 to 742 range. I'm cleaning up a wrongful Charge-off on my reports, and that is the only negative I have (except 1 30 day late pay from 6 years ago)
Some general numbers:
~13,500 in credit card debt (balances on 3 of my 7 cards)
99,400 total credit available to me on those 7 cards (47500 on one of them that I pay off each month)
I have a 18 month plan that will get me out of this debt, and have a little chunk in savings (for emergencies). I can then payoff my car in another 1.5 years after that. This is all assuming I don't get a raise or any other "windfall", also that I can continue with my current budget (which I feel is very do-able).
Now, of my 3 cards with the balance, the utils are 67%, 16%, and 59%...but, my overall util would be 13.6% of the nearly 100K.
I've been reading a bunch on Util, but still am not currently clear. It sounds like although my overall util is good (of course 0% would be ideal), the two cards that are over 50% could be greatly effecting my score.
I could move that debt around with some balance transfers, and thus push my getting out of debt date back...if I used Excel correctly, about 5 or 6 months, moving a good chunk of that debt to a the 47500 limit card.
Keep in mind, although I'm going to refi (and hopefully keep closing costs low), I do not plan to stay in my current place for very long. Again, just 2 or 3 years. But, of course, things change.
Thoughts? Suggestions?
Thanks.
