cancel
Showing results for 
Search instead for 
Did you mean: 

Refinance and new home mortgage

Livvi
Valued Member

Refinance and new home mortgage

Hi Everyone!  With the decrease in mortgage rates I started thinking perhaps I should refi the house.  But we were looking to help our disabled son purchase his first home as well - I got some good advice about that from MyFico Friends so I am hoping you all will chime in again!

My current rate is 4.5% and we are 10 years in to a 30 year mortgage with Bank of America I am still paying PMI since I refinanced about 8 years ago :/    Looks like B of A's current 15 year fixed rate is 3.125% and their 30 year is 3.875%

 

My credit has improved greatly since I bought the house, my Fico 8 scores are TU 825 EX 805 EQ 787.  I know mortgage scores are different but I don't have that info.  I also have more equity in the house and the values of homes in our area have gone up.  BUT .... I have also added a "little more" debt which I am snowballing like crazy to pay off.  A lower mortgage payment would speed that snowball to pay down that debt even faster.... which brings me to my next question

If I were to refinance, would that hurt us in being co-borrowers on a mortgage for him?  We were thinking early next year (Feb 2020) to start shopping for mortgages and houses.  I have planned to have a big chunk of debt paid down by that time.  What do you guys think?  A refi would save us some money but I don't want to hurt my scores so we can still help our son.

Any advice would be greatly appreciated - thank you all so much!!!

 

4 REPLIES 4
kc0039
Established Contributor

Re: Refinance and new home mortgage


@Livvi wrote:

Hi Everyone!  With the decrease in mortgage rates I started thinking perhaps I should refi the house.  But we were looking to help our disabled son purchase his first home as well - I got some good advice about that from MyFico Friends so I am hoping you all will chime in again!

My current rate is 4.5% and we are 10 years in to a 30 year mortgage with Bank of America I am still paying PMI since I refinanced about 8 years ago :/    Looks like B of A's current 15 year fixed rate is 3.125% and their 30 year is 3.875%

 

My credit has improved greatly since I bought the house, my Fico 8 scores are TU 825 EX 805 EQ 787.  I know mortgage scores are different but I don't have that info.  I also have more equity in the house and the values of homes in our area have gone up.  BUT .... I have also added a "little more" debt which I am snowballing like crazy to pay off.  A lower mortgage payment would speed that snowball to pay down that debt even faster.... which brings me to my next question

If I were to refinance, would that hurt us in being co-borrowers on a mortgage for him?  We were thinking early next year (Feb 2020) to start shopping for mortgages and houses.  I have planned to have a big chunk of debt paid down by that time.  What do you guys think?  A refi would save us some money but I don't want to hurt my scores so we can still help our son.

Any advice would be greatly appreciated - thank you all so much!!!

 


In my experience, if your score is above 760, you should have the best rates for the mortgage and PMI. I would suggest going to a local lender who can walk you through both your personal refinance and purchase for your son since it would be an easier and shorter process than going with BofA

Licensed in IL
Message 2 of 5
VALoanMaster
Valued Contributor

Re: Refinance and new home mortgage


@Livvi wrote:

Hi Everyone!  With the decrease in mortgage rates I started thinking perhaps I should refi the house.  But we were looking to help our disabled son purchase his first home as well - I got some good advice about that from MyFico Friends so I am hoping you all will chime in again!

My current rate is 4.5% and we are 10 years in to a 30 year mortgage with Bank of America I am still paying PMI since I refinanced about 8 years ago :/    Looks like B of A's current 15 year fixed rate is 3.125% and their 30 year is 3.875%

 

My credit has improved greatly since I bought the house, my Fico 8 scores are TU 825 EX 805 EQ 787.  I know mortgage scores are different but I don't have that info.  I also have more equity in the house and the values of homes in our area have gone up.  BUT .... I have also added a "little more" debt which I am snowballing like crazy to pay off.  A lower mortgage payment would speed that snowball to pay down that debt even faster.... which brings me to my next question

If I were to refinance, would that hurt us in being co-borrowers on a mortgage for him?  We were thinking early next year (Feb 2020) to start shopping for mortgages and houses.  I have planned to have a big chunk of debt paid down by that time.  What do you guys think?  A refi would save us some money but I don't want to hurt my scores so we can still help our son.

Any advice would be greatly appreciated - thank you all so much!!!

 


Hi Livvi,

Reducing your total debt in terms of your monthly payment is what will matter the most when it comes to helping your son with a mortgage.

In terms of moving forward, I would look at the numbers for a 30 year fixed refi knowing that you can make an extra payment every month to put yourself on the same track as a 15 year loan without negatively effecting how much you can help your son.

Does that make sense?

VA Mortgage Expert. Mortgage Banker lending in All 50 States.
VA, FHA, USDA. Jumbo, Conventional.
CAIVRS Expert.
Message 3 of 5
Livvi
Valued Member

Re: Refinance and new home mortgage

That makes perfect sense! Thank you so much!  I called BofA today along with a local loan servicer here in town. BofA came in with a monthly payment of $300 less per month thant I currently payf for a 30 year but there wasn't much savings with a 15 year.  I gave each company my most recent scores but no credit checks yet.  I thought I would try a local credit union as well.  Is it a good idea to have all three do a credit check and get a formal proposal then make a decision off of what they come up with? Any other advice is greatly appreciated!

Message 4 of 5
VALoanMaster
Valued Contributor

Re: Refinance and new home mortgage


@Livvi wrote:

That makes perfect sense! Thank you so much!  I called BofA today along with a local loan servicer here in town. BofA came in with a monthly payment of $300 less per month thant I currently payf for a 30 year but there wasn't much savings with a 15 year.  I gave each company my most recent scores but no credit checks yet.  I thought I would try a local credit union as well.  Is it a good idea to have all three do a credit check and get a formal proposal then make a decision off of what they come up with? Any other advice is greatly appreciated!


You're welcome.

You do not need to complete an application & have a credit report pulled to get a quote from a lender on their rate & fees.

Ask each lender the following.

1) What is the 30 year fixed rate today.

2) Do they charge points or an origination fee?

3) What do they charge for processing & underwriting.

4) What are their current turn times. Some lenders are taking 90+ days to close a refi!

Then you can compare the quotes & make a decision.

 

VA Mortgage Expert. Mortgage Banker lending in All 50 States.
VA, FHA, USDA. Jumbo, Conventional.
CAIVRS Expert.
Message 5 of 5
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.