topic Re: Buying a new house, when should I refinance my current home? in Mortgage Loans

Buying a new house, when should I refinance my current home?

Anonymous — Thu, 05 Nov 2015 23:57:55 GMT

First of all, have to thank this forum to help me understand my credit score (now 700+!), and make it possible to buy a house.

Now, would love to get your advice on when I should refinance my first home. Here's where I am at:

1. Closing new home in a few weeks

2. My current home's ARM loan is ending in few months (which is main reason why I want to do this)

3. Want to take some money out from my currnet home, as it has gone up in value.

Questions:

- Should I wait a few months before I start my refi?

- I need to make a few big purchases for my new home, and tempted to get new CC or CLI. Just want to confirm - is it a bad idea to open new CL before a refi?

Thanks in advance for your help!

Re: Buying a new house, when should I refinance my current home?

Anonymous — Fri, 06 Nov 2015 12:56:55 GMT

@Anonymous wrote:
First of all, have to thank this forum to help me understand my credit score (now 700+!), and make it possible to buy a house.

Now, would love to get your advice on when I should refinance my first home. Here's where I am at:
1. Closing new home in a few weeks
2. My current home's ARM loan is ending in few months (which is main reason why I want to do this)
3. Want to take some money out from my currnet home, as it has gone up in value.

Questions:
- Should I wait a few months before I start my refi?
- I need to make a few big purchases for my new home, and tempted to get new CC or CLI. Just want to confirm - is it a bad idea to open new CL before a refi?

Thanks in advance for your help!

I think it is a bad idea to open a new CC before finalizing a mortgage or getting a refi.

The refi/mortgage question is interesting, and I don't think I've seen it come up before. My gut instinct is to tell you to give it 6 months to a year, so that the HPs that you're going to take can age and so that it doesn't look like you're engaging in credit seeking behavior. However, I'm also curious if it matters. If you are happy with your scores, it might be more beneficial to do it now, after the mortgage is finalized, but before it starts reporting. I'd love to hear what others in this situation think.

Re: Buying a new house, when should I refinance my current home?

Anonymous — Sat, 07 Nov 2015 09:43:51 GMT

@Anonymous wrote:
First of all, have to thank this forum to help me understand my credit score (now 700+!), and make it possible to buy a house.

Now, would love to get your advice on when I should refinance my first home. Here's where I am at:
1. Closing new home in a few weeks
2. My current home's ARM loan is ending in few months (which is main reason why I want to do this)
3. Want to take some money out from my currnet home, as it has gone up in value.

Questions:
- Should I wait a few months before I start my refi?
- I need to make a few big purchases for my new home, and tempted to get new CC or CLI. Just want to confirm - is it a bad idea to open new CL before a refi?

Thanks in advance for your help!

With new house mortgage and refi doesn't matter as long as ur credit and income can support but do it before u put lots of balance onto ur credit card for new house cuz seeing all the new debt and ur income to DTI jump over 40% they mite not refi ur home loan

Re: Buying a new house, when should I refinance my current home?

Anonymous — Mon, 09 Nov 2015 20:31:24 GMT

Thanks all - just wanted to make sure it wouldn't cause a red flag when I refi, and sounds like it won't. I will report back here for others if I see any issues!

Re: Buying a new house, when should I refinance my current home?

Anonymous — Mon, 09 Nov 2015 20:38:43 GMT

Wait until you close on your new home, then you will be okay to refi on your current home.

Re: Buying a new house, when should I refinance my current home?

StartingOver10 — Tue, 10 Nov 2015 18:56:56 GMT

Every once in a while a client of mine refinances their current home and pulls out equity first, before purchasing the new property. Usually I see that when the buyer has tremendous equity in their current home and they want to buy and move prior to selling the old home.

It is best to have a heartfelt discussion with your LO about your goals before you do anything. You don't want to find yourself in a financial bind by having two mortgages if it isn't necessary.