topic Re: Refi question- home repairs in General Credit Topics

Refi question- home repairs

Duncanrr — Thu, 14 Jun 2012 22:17:52 GMT

I have storm damage in home from roof collapsing in bathroom. I paid to have roof immediately fixed but still need 3-4k worth of repairs inside that ive been putting off. (it's not master bath and put funds elsewhere). I probably have another 2k worth of repairs of minor things I want to do before refi and new appraisal. I was just going to spend money out of pocket but I want to know if getting 5-6k loan for 12 months would be a better route? Would this hurt my refi next year (I will have it paid off before refi)? From what I'm reading it should help my credit score.

Re: Refi question- home repairs

pizzadude — Thu, 14 Jun 2012 23:41:50 GMT

@Duncanrr wrote:
I have storm damage in home from roof collapsing in bathroom. I paid to have roof immediately fixed but still need 3-4k worth of repairs inside that ive been putting off. (it's not master bath and put funds elsewhere). I probably have another 2k worth of repairs of minor things I want to do before refi and new appraisal. I was just going to spend money out of pocket but I want to know if getting 5-6k loan for 12 months would be a better route? Would this hurt my refi next year (I will have it paid off before refi)? From what I'm reading it should help my credit score.

Are you considering a home equity loan or a personal/unsecured loan ? Assuming that you already have a mortgage and/or other installment loans reporting, it really won't boost your FICO score to add another one if the new loan reports as an installment loan.

Re: Refi question- home repairs

Duncanrr — Fri, 15 Jun 2012 01:49:04 GMT

@pizzadude wrote:
@Duncanrr wrote:
I have storm damage in home from roof collapsing in bathroom. I paid to have roof immediately fixed but still need 3-4k worth of repairs inside that ive been putting off. (it's not master bath and put funds elsewhere). I probably have another 2k worth of repairs of minor things I want to do before refi and new appraisal. I was just going to spend money out of pocket but I want to know if getting 5-6k loan for 12 months would be a better route? Would this hurt my refi next year (I will have it paid off before refi)? From what I'm reading it should help my credit score.
Are you considering a home equity loan or a personal/unsecured loan ? Assuming that you already have a mortgage and/or other installment loans reporting, it really won't boost your FICO score to add another one if the new loan reports as an installment loan.

I have a mortgage but it's not traditional. It's through family member and doesn't report or show up in report. I was considering personal loan. The only installment loan I have is my car and student loans.

Re: Refi question- home repairs

pizzadude — Fri, 15 Jun 2012 01:54:48 GMT

If the personal loan is reported as an installment loan then it won't do anything for your FICO score. I believe that most fixed rate personal loans usually fall into this category.

If it reports as a revolving ( open ended line of credit ) then it may or may not help depending on what credit limit is assigned and also on any other revolving credit card accounts that you have open.