Mortgage Loans

[myhearts07]

I am planning to refi any day now and I wanted to know if I do this, even though all debt will be paid off with the exception of car payments, how will this affect my scores?  Negative or positive?

Thanks for all comments

Evelyn

[OBXFrank]

I'm not 100% certain of this, but I was told it's kind of a good news/bad news situation to refinance a vehicle (we did this about a year back, though I'm not sure what the immediate impact to my score was).  First, and foremost, we did knock almost 3% off of our really bad rate, which not only saved 6 months of payments, but brought the payments down a bit, also.  As far as the impact to your credit, because it's a new account, it's viewed negatively, however, I've also been told that because the original account history shows up in my report as well, it still shows potential lenders that I've been making the payments in a timely manner, regardless of who held the loan; it's just split between two people.  I bought a house a few months later, and was told they looked right past it, more concerned about me making the payments on time than who held the note.

Again, I'm no loan officer, but that explanation made sense to me...

[myhearts07]

Okay OBXFrank,

Thanks

[steelfan]

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myhearts07 wrote:

I am planning to refi any day now and I wanted to know if I do this, even though all debt will be paid off with the exception of car payments, how will this affect my scores?  Negative or positive?

Thanks for all comments

Evelyn

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I would imagine it affecting you both ways.  First in a negative way by losing points with the inq and new loan added to you report.  Then you'll  see the positives if your using the loan to pay off cc's.  Lowering your utl will raise your score 

[Timothy]

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myhearts07 wrote:

I am planning to refi any day now and I wanted to know if I do this, even though all debt will be paid off with the exception of car payments, how will this affect my scores? Negative or positive?

Thanks for all comments

Evelyn

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It will have positive affects as long as you don't run up the debt again.

You already took several hits with the iNQ's
Paying off a Positive TL - that will stay on for 10 years.
Big boost for reducing UTL- positive cash flow helps too
New TL will start helping in 6 months.

Re-fi so we can stop worrying about you !!!!!!!!!!!

[myhearts07]

Great!!!  No, no cc's running back up over here, it has been too long of a haul trying to refi to have to go back that route again.

Thanks

Eve