refinancing auto loan before mortgage?

[lovelylisa84]

I have an advice question... we are getting an FHA loan. After my CH7 BK I bought a new car, I got 9% on it and my husbands car broke down and the cost to repair exceeded the worth of the car (it was 30 years old) he bought a used car and has a interest rate of 13.5%, our credit scores have improved from 50-80 points between the both of us. Our total car payments are $840. I think if we refinanced that we can hopefully save a minimum of $200 a month. Which will help our debt to income ratio and give us more buying power. Do you think this is a good idea, or do you think we should just try to find a home without refinancing?

[frugalQ]

when are you planning to refi?  lenders do not look down on refi's.  however, you have to consider the possible drop in scores due to the inquiry, the closing of existing loan and a new loan showing up on your credit report.  what are your current mortgage scores?

when are you planning to purchase?  are you working with a lender?  if you are, I suggest to discuss this with him/her first.  

if you are at least 6 months from applying for a mortgage and are not working with a lender, i recommend you pull your mortgage scores from myfico and see where you are.  if your scores are comfortably within FHA guidelines, you probably can pull the trigger and refi.  you will have several months for your scores to rebound.