Would like to ask opinions for the following.
Iam a few months out from applying for a convential mortgage. I plan on putting 10% down my scores are good. Help needed with this. I have 10,000 in credit card debt, would taking out a loan to pay that off hurt getting a mortgage?
Dont know if new installment debt will hurt, from what I read paying off credit card would up score
Thank you for help
That's a tactic I've seen plenty of people use and work for them. Have you run any simulators to see what the change in utilization + a new installment account would do? A loan officer can run that simulator for you, but they'd have to do a hard inquiry to check credit first.
With conventional financing you'll see breaks on interest rates with every 20 points, the best would be a 740+ credit score. PMI rates go by every 20 point increments, all the way to 760+.