Refi now or later

[oldschool]

I stumbled across this board a few weeks ago and it his been a wealth of information, there are a lot of knowledgeable people here...so I will ask questions.

I filed BK about 3 1/2 years ago, and refinanced my home about a year later to an ARM, my interest rate went up last July to 9.7% and is scheduled to go up to 10.7% in January. I pulled my credit scores and they are showing TU 631 EX 647 EQ 667.

Now my question, I contacted Countrywide about refinancing my loan (I owe 88,000) they said I should be able to get a rate of about 6.7% ballpark for a 15 year fixed, (I did not want them to pull a credit report untill I decided what I was going to do) and my closing costs would be about 6,000. I then contacted WAMU who currently holds the mortgage and they said they could currently lock my 9.7% for the balance of the loan for $350.00. I could then refinance at a later time after I improved my score. 

I'm leaning towards WAMU, because they said since my BK is not 4 years or older and my credit scores should be about 675 median I will not garner that much of a better rate. If I did go this route and waited the eight or nine months to refinance, I should be passed the 4 year mark and hopefully my scores will continue to improve.

So tell me oh wise people of the credit boards...what do you think I should do?

[Anonymous]

i would go wamu. way less money to lock the rate and wait for the scores to rise and the rates drop. really how much would you save by paying the cost to move from wamu and how long or how low of a rate would you have to get to regain the money given up in the refi costs?

[oldschool]

Thanks DNM that's what I was thinking, the only reason I was hesitating was with the dropping values in the home market and if the interest for home loans rises in the next year...well, that was my dilemma.