Will my score drop if I refinance my cars?

ChangiBear · ‎02-19-2013

I'm not due to close on my house until September (new construction), and my credit has not been pulled since August. Currently my score is around 719 from myfico.com. I'm wanting to reduce my dti by refinancing my cars and possibly paying one off. Will this possibly reduce my score and will my score recover by the time I apply in July? Any thoughts or experience?
Thanks!

Cleared to Close on 9/9/13!
Closing on 9/17/13

8/31/12 FICO 733 (lender pulled)
1/7/13 Transunion 718, Equifax 710 (MyFico)
2/20/13 Equifax 729
8/13/13 Ex 751, Eq 766, TU 741 (all lender pulls)

DallasLoanGuy · ‎02-19-2013

good question for the credit forum.

why do you need to lower your dti? are you not pre-approved already?

Retired Lender

ChangiBear · ‎02-19-2013

I am pre-approved but for an FHA. I would like to qualify for a conventional loan because my home is more than the loan limit in my area, and going the conventional route will mean that I won't have to bring as much money to closing (to bring down the loan if I were to go FHA).

My dti is high because I pay $1080 in student loans monthly, and I have three car notes.

Cleared to Close on 9/9/13!
Closing on 9/17/13

8/31/12 FICO 733 (lender pulled)
1/7/13 Transunion 718, Equifax 710 (MyFico)
2/20/13 Equifax 729
8/13/13 Ex 751, Eq 766, TU 741 (all lender pulls)

JonRun · ‎02-20-2013

I consolidated my student loans last year and it dropped my score by 2 or 3 points. I assume this is because my Average Age of Accounts was lowered.

MovingForward_2012 · ‎02-20-2013

I think your score will recover by September if you refinance the cars now. Usually it takes about 6 months for the new account to start generating positive history.

Are you paying that much on your student loans just to pay it off quicker or is that your min required monthly payment? It just seems really high to me. If that is your true min monthly payment, I would try to do a loan consolidation to get the payment down.

Last App: 4/5/13 Gardening until July 2014

ChangiBear · ‎02-20-2013

Yes, that is my true consolidated minimum monthly payment for my student loans. I have my Doctorate, which is why I have a lot of student loan debt.

I refinanced two of my cars today, so I'll be watching my score to see how it changes.

Cleared to Close on 9/9/13!
Closing on 9/17/13

8/31/12 FICO 733 (lender pulled)
1/7/13 Transunion 718, Equifax 710 (MyFico)
2/20/13 Equifax 729
8/13/13 Ex 751, Eq 766, TU 741 (all lender pulls)

tooleman694 · ‎02-20-2013

I paid off my car May 2012 and my score did not change, I sold it and bought a new car and my score changed a couple of points.