Questions about Refinancing

[Anonymous]

Hello MyFicoers,

Pls I need some advice. I am looking to refinance my 8 year BofA mortgage in the next month or so. My rate is about 6%+. My scores are in my signature. Not quite high, but wanted to get ideas with banks to refinance with. Would it be wise to try refinancing with BofA for a lower rate? Also does it hurt to go on a credit card app spree for 2-3 credit cards before refinancing? Or should I hold off.

[DallasLoanGuy]

an app spree could only hurt.... NOT help

i wouldnt go to bofa, personally. but they might be an option.

ask friends/family/coworkers for a referral to a great loan officer they used and were happy with.

[Anonymous]

Hold off on the cards until after your refinance.

Your scores are a bit low for a conventional loan, but whether you went conventional or FHA you'd still save money on the rate.

My big concern is equity... do you have any idea how much, if any, equity you have in your home? If you purchased in 2007, I'm worried there's a possibility that you may be underwater.

[frugalQ]

If your current home is FHA, you can do a streamlined refi. I am on my phone so I can't see your scores, but maybe it's worth discussing with BofA

[Anonymous]

@DallasLoanGuy wrote:

an app spree could only hurt.... NOT help

i wouldnt go to bofa, personally. but they might be an option.

ask friends/family/coworkers for a referral to a great loan officer they used and were happy with.

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I will try to hold off and ask around for referrals. Thank you!

[Anonymous]

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@Anonymous wrote:

Hold off on the cards until after your refinance.

Your scores are a bit low for a conventional loan, but whether you went conventional or FHA you'd still save money on the rate.

My big concern is equity... do you have any idea how much, if any, equity you have in your home? If you purchased in 2007, I'm worried there's a possibility that you may be underwater.

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Hello dpeezy,

Thanks! Yes, you are right..I dont have any equity. We paid 259k and currently owe 245k. Any tips would be appreciated.

[Anonymous]

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@frugalQ wrote:
If your current home is FHA, you can do a streamlined refi. I am on my phone so I can't see your scores, but maybe it's worth discussing with BofA

Hello FrugalQ,

I just researched streamlined refinancing. Seems like a great option. However, i have a dilemma...I had a late payment in November of 2014 and i read that the streamlined refi requires 12 months of timely payments. WHat to do?

[Anonymous]

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@Anonymous wrote:

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@frugalQ wrote:
If your current home is FHA, you can do a streamlined refi. I am on my phone so I can't see your scores, but maybe it's worth discussing with BofA

Hello FrugalQ,

I just researched streamlined refinancing. Seems like a great option. However, i have a dilemma...I had a late payment in November of 2014 and i read that the streamlined refi requires 12 months of timely payments. WHat to do?

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Per FHA guidelines:

"-experienced no more than one 30 day late payment in the preceding 12 months, and

-made all mortgage payments within the month due for the three months prior to the date of the loan application."

[Anonymous]

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@Anonymous wrote:

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@Anonymous wrote:

Hold off on the cards until after your refinance.

Your scores are a bit low for a conventional loan, but whether you went conventional or FHA you'd still save money on the rate.

My big concern is equity... do you have any idea how much, if any, equity you have in your home? If you purchased in 2007, I'm worried there's a possibility that you may be underwater.

---

Hello dpeezy,

Thanks! Yes, you are right..I dont have any equity. We paid 259k and currently owe 245k. Any tips would be appreciated.

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 At least you are not underwater (owe more than it's worth). If you went FHA originally, you can do a streamline refi.