I'm looking to refinance. I was initially quoted a 30 year fixed at 6.5% in March, but by the time the underwriters got through with me it was a 30 year interest only with 8.25%. Not happy! However, my lender (LendingTree.com) allows returning customers to refinance at NO costs.
Here's my general situation, any advice appreciated.
I owe CC debt approx $60K (avg APR 6.5%)
I have Interest only Home loan (8.25% $366K, 100% financing)
I earn $7K/month Net Current monthly liabilities $6,200 (cc payments, mortgage, insurance, etc)
I have $20K cash
Credit score 680
Now, the question I have is what to do with the cash. Should I try to reduce my CC debt and raise my credit score, or would it be wiser to use it as a down payment to secure a better mortgage. Also, what about buying points and what direction is the lending market looking to take in the next 6 months?
Thanks for the advice. T
Message Edited by roonis on 08-10-2007 12:51 PM
