2nd mortgage seen as open credit on Fico score
04-09-2012 08:38 PM
I have had a 2nd mortgage for 8 years for $123,000. The lender convinced me to get a revolving credit. As a result of the economy the lender reduced the line of credit to the amount of the home equity needed, which is the $123,000.
Looking at my Fico score I am being severely penalized for having that much debt on a revolving credit. I owe $510,000 on my first mortgage, $90,000 total in parent plus loan and approximately $500 on one line of credit (total line of $1,500) and $700 on another line of credit (total line of $2,000). My credit score for both is 668.
Should I refinance the 2nd mortgage for a loan installment product?