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Mortgage refinance is next on my to-do list

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Anonymous
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Re: Mortgage refinance is next on my to-do list

bman98 wrote:

Hey folks...Now that I have gotten my auto loans refinanced to a good rate, the mortgage is next. Since my loan was modified 3 times it's now a 40 year term at 6.75%. My goal is to take at least 20 years off the term and get the rate down under 5% or better. The mortgage is over 10 years old and I have never refinanced before so I am not aware of what is needed to do this. The good news is I am not upside down on the loan. The bad news is my mortgage scores are all 40-60 points lower than my Fico 8 scores. I'm guessing it's due to the many late payments on my loan and perhaps the modifications. So, here's my 5 questions for now:

 

  1) Are the score requirements for refi the same as for a new mortgage?

Typically yes, however sometimes a cash-out requires a slightly higher score.

 

Not looking for cash out...just straight refi.

 

  2) What score should I aim for to get a 20 year loan under 5%?

Depends on what loan type you go with. How much equity do you have in the property?

 

Depending on the appraisal...10-15% is my guess.

 

  3) Is there any way to focus on improving the mortgage scores specifically other than paying it on time(no lates since last April).

Rebuidling forum will be your best bet here.

 

Went through the forum and have been rebuilding. Didn't see anything about how to specifically impact a mortgage score other than making regular payments.

 

  4) My loan is a fixed conventional with Chase. Is there a streamline refi option on conventional loans? Am I better off looking for a new loan provider or would it be                  easier to refi with my current bank?

With some of the challenges your situation presents, I'd recommend a direct lender and stay away from the big banks.

 

Got it,

 

  5) Is HARP an option for me? I know I can't have any lates in the last 12 months so I will be there in 3 months.

Most lenders require 620 for HARP.

 

Assuming I get to 620...should I be able to accomplish my stated goal of cutting 15-20 years off the loan and getting under 5%?

 

        Thanks

        Brian

Message 11 of 13
Anonymous
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90 Day Update: Mortgage refinance is next on my to-do list

Ok...been working hard on my rebuild. By the end of July I will have had no lates in the last 12 months and drastically improved my credit profile. Here are my most recent mortgage scores from MyFico(as of 4/7/16):

 

EX - 630 / EQ - 644 / TU - 646

 

I would like to begin the refinance process in August. Barring any unforseen circumstances, my scores should continue to improve. My income is low 6 figures and monthly payments for cars and credit cards is approximately $1500(Util is 17% and total CC debt is $3500). I have very little equity due to multiple modiifications on my loan. Current payment is $2045(6.75%) including homeowners and taxes. The loan balance is $275k. I'm hoping to refinance into a 20 year loan and save a few bucks a month as well. I would want the least amount of money out of pocket as possible. Based on this info...what are my chances of success? Thanks!

Message 12 of 13
907grown
Established Contributor

Re: Mortgage refinance is next on my to-do list


@Anonymous wrote:

Thanks for the response 


I just locked in last Wednesday an FHA streamline refi at 3.375% with a mid score of 669. No cash to close. Although you may not be quite there yet you probably can be in the somewhat near future. Good luck!! I can only imagine the weight that will be lifted when you can dump that interest rate!!



Starting Score: 460
Current Score: EQ 764, TU 764, EX 740,
BOA AK AIR 30,000, Discover IT 6300, Freedom 25,300, Barclays RMC 15,660, Ring 15,000, BCE 15,000, QS17,000,AARP 15,000, ChaseFU 8,000,AND A LOT MORE!
Message 13 of 13
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