We have always had credit in the high 700s. Last year, I learned the hard way what happens when you puchase a car and let the dealer talk you into financing. They were offering rates below 2% for great credit, so we bit. Their finance manager proceeded to "farm" out our application to 5 different banks who all did a hard pull on my credit. Never again. It reduced my credit score to 690 (on equifax and experian, transunion still reports 700 something).
We are a high income household - 1.2 mm annually. Our house recently appraised at 2mm, and we owe about 1 mm on it. Other than the house, all other consumer debt totals about 100k (cars, cards, etc.).
We were thinking that we might want to pull about $100-150k of equity out of the home mortgage to pay off some of the other debt and do a few things around the house. For us this would be a short term play - 5 years max, maybe less, to pay off.
A year ago I wouldnt have thought twice. But before I go start applying and having more credit reports pulled, I would love a general impression on whether or not we should even go down this path. Will we get approved to do a HELOC on our jumbo mortgage? Rates look like they are in the 3% + range right now, which is pretty good, but I am just more focused on whether or not we will even get approved with a 690 FICO.
We dont have to do this. We would like to do this.
thanks!
