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Mortgage ?

Banta12
New Visitor

Mortgage ?

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

 

 

 

Message 1 of 3
2 REPLIES 2
ShanetheMortgageMan
Super Contributor

Re: Mortgage ?

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+.

Helping people with mortgages (FHA, VA, USDA, Fannie, Freddie, Non-Prime, Construction, Renovation/Rehab, Commercial) since 2002
Located in Southern California and lending in all 50 states
Message 2 of 3
Banta12
New Visitor

Re: Mortgage ?

Thank you for your help. I will look into that and see what it says may happen

Message 3 of 3
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