Re-Finance

[Anonymous]

Thanks in large part to the advice I've gotten on this forum I've raised my credit scores by around 125 points over the last two years. My scores right now are EQ:679 TU:715. The last time I was able to check Experian I had a 698. When I was able to check Experian regularly it was usually within 2 points of my TU so I think it's probably around 715 now.

With rates being so low I'm looking at refinancing my house. My current loan is an FHA from Countrywide that has been taken over by Bank Of America. I want to refinance for 15 years. Does anyone have any idea if my scores are good enough to even think about refinancing?

I currently have a 28% balance to credit ratio on my revolving account. I could have this at below 10% next month. That might raise my scores a bit. Should I wait until then to apply and take a chance on rates going up?

Message Edited by jgriff on 09-29-2009 09:02 AM

[DallasLoanGuy]

Will you be refinancing into another FHA?

 What do you owe? What is the property worth?

[Anonymous]

I don't know if I should do another FHA loan or not. I was planning on applying at Bank Of America.

I owe $131k and the tax appraisal is $185k.

[ShanetheMortgageMan]

Your scores look fine to refinance, if the market value is also $185k then you have at least 20% equity, and I'd lean towards doing a refinance into a conventional loan vs. a new FHA loan.  An FHA loan won't have monthly MI (since you are taking a 15-year term or less and the LTV is 90% or less), and will have an upfront mortgage insurance premium of 1.5% (if you do a streamline FHA refinance), or 1.75% (if you do a credit qualifying refinance)... whereas conventional loan will not have that charge.