topic Re: Refinance before mortgage? advice please in Mortgage Loans

Refinance before mortgage? advice please

Anonymous — Tue, 30 Mar 2021 21:30:07 GMT

We had put in an offer on a house but they accepted someone elses.

I was worried about my DTI and wondered if I should refinance now to get my DTI down or will that look bad and deny me from a mortgage?

I'm not worried about paying, I have my fiances income too but there isn't a way to add her to my loan due to her bad credit.

Re: Refinance before mortgage? advice please

tooleman694 — Tue, 30 Mar 2021 21:35:13 GMT

Refinance what? A car? A home you are not selling?

Depending on your score situation, a new account of any kind can be terrible or not an issue. What are your credit scores.

Re: Refinance before mortgage? advice please

Anonymous — Tue, 30 Mar 2021 21:47:59 GMT

@tooleman694 wrote:
Refinance what? A car? A home you are not selling?

Depending on your score situation, a new account of any kind can be terrible or not an issue. What are your credit scores.

Sorry, yes it is a car loan. Opened 05/2020 original balance $16,438 Current balance $13,513 13.44%APR

My scores when I got the loan were around 560s CK It is now 655 TU/CK

Mortgage scores Equifax-632 Transunion-611 Experian-633 currently

I did also PFD on two collection accounts and one charge-off. Just waiting for them to be removed. And had $4750 in student loans discharged so that balance will go down from 21k to 16k as well.
All that is left is two charge off accounts and one collections account and working to get those off as well.

Re: Refinance before mortgage? advice please

dragontears — Tue, 30 Mar 2021 22:11:41 GMT

With a MMS 632 you are playing with fire opening any new accounts.

Did your lender tell you that your DTI is too high?

Re: Refinance before mortgage? advice please

Anonymous — Tue, 30 Mar 2021 22:25:03 GMT

@dragontears wrote:
With a MMS 632 you are playing with fire opening any new accounts.
Did your lender tell you that your DTI is too high?

That's what I was afraid of.
Yes one told me it was too high. The only payment I have is the car payment for $335 and my credit card I use for the AZEO which was at $6
I'm assuming they are factoring in my student loans which are at 21.6K on my report but actually sitting at 16.9k now
My most recently opened account was a student loan 5 months ago, which is the one that was discharged last month due to COVID? So I'm not sure if it will be completely removed or just show paid off?

Re: Refinance before mortgage? advice please

tooleman694 — Tue, 30 Mar 2021 22:55:55 GMT

Yeah middle score of 632, leave it alone. No Refi.

Re: Refinance before mortgage? advice please

Anonymous — Tue, 30 Mar 2021 23:35:35 GMT

@tooleman694 wrote:
Yeah middle score of 632, leave it alone. No Refi.

Sounds good!
Thank you!!