Auto refil while raising scores for mortgage app

[bellagio1]

Hello ,

in preparing to apply for a mortgage in a few months we have been working on paying off credit cards and deleting the couple of blemishes .

Question is if we refi our auto loan , will

scores drop due to inquiry and new credit reporting? Will the original loan being satisfied be a wash ?

thanks ! 

[ldkcivilservant]

No, it won't be a wash. You will most likely end up 20-30 points worse off. If you are looking at a mortgage app soon, don't do it. Wait until after you have closed on the mortgage. Even .25% extra a month on the APR of a mortgage is thousands of dollars in interest over the life of the loan.

[Anonymous]

You definitely do not want to open any new accounts before a mortgage, mortgage scores do not like new accounts and mortgage underwriters will not like the new accounts either.

[SweetCreditObsession]

I couldn't agree with the previous posters more.

In addition, I suggest you comb the mortgage forums for additional practical tips so that your mortgage approval process goes off without a hitch. Best wishes!