Hi Eve,
I am not a mortgage professional, but Wow!, this does not sound good. Why did your payments go up so much? Were the taxes not escrowed or did the taxes rise that much? Anyway, as far as your scores and refinancing...scores are not the only thing that will be looked at. Loan to value ratio, debt to income ratio and credit scores will all come into play. With the scores you posted, it appears that you will only qualify for subprime [if even, sorry 
. I would really look at those rates and what the payments would be, because your payments would be considerably higher with a sub-prime rate. Unless you have great LTV and low DTI, I seriously doubt refinancing now will help you much. I don't have way in the much of suggestions, except I would talk to a very good loan officer, mortgage broker and see what could be done for you. If you could get those scores to a mid of 600 for both of you, you would be in a much better position. I personally would try to manage until the scores were a little bit higher. You're really not that far off, perhaps a few months??? I am sure that there are others on this board who are much more versed in mortgages than I and could offer some advice. Good luck.
. I would really look at those rates and what the payments would be, because your payments would be considerably higher with a sub-prime rate. Unless you have great LTV and low DTI, I seriously doubt refinancing now will help you much. I don't have way in the much of suggestions, except I would talk to a very good loan officer, mortgage broker and see what could be done for you. If you could get those scores to a mid of 600 for both of you, you would be in a much better position. I personally would try to manage until the scores were a little bit higher. You're really not that far off, perhaps a few months??? I am sure that there are others on this board who are much more versed in mortgages than I and could offer some advice. Good luck.