Hi MyFico,
I have a question regarding refinancing my home. I was a first time homebuyer in March 2012. $120,000 sales price, 3.5% down, FHA loan at 4.25, 30 year fixed.
My current payment is $836, including 115 for MIP. I want to take off MIP, but I cannot until the loan is at $94.5k and at least 5 yeards old. At the rate I am paying, I will reach 78% LTV in 2021 and can then remove MIP payment.
I want to refinance now or soon to get rid of the PMI. Interest rates are still around the same as when I first bought my home so I think it still makes sense since the loan is still so young.
Last month my balance was around $110k. I needed cash quickly to handle some personal things, so I got a HELoan two months ago for $19,000. My home appraised for $181,000.
My credit score is in the 750-760s. I recently got approved for Amex BCE. They included my score in the documentation and it was 763 from Experian.
I have Chase Freedom $7500, Amex BCE $6,400, WF $6,900, Walmart Store Card $6,000, and a Macy's store card.
I have no car payment, and minimal balances that I can pay off on two of my credit cards (around 700 combined). The others are 0.
Assuming my income is enough to qualify for the refi, WILL I qualify for one even though I just got a HEL very recently? That is where I am nervous. I don't want another inquiry on my report if it will be a denial and not for a new account..
I guess long story short, do I need to wait to apply for a refinance since I just got a HEL (and Amex recently). I want a cashout refi to pay for the second and remove MIP payment.
Any replies, suggestions, or ideas are greatly appreciated. Thank you!
