Refinance with cash out and low credit score

[cat98037]

bdhu2001, sorry that you got the run around on paying every two weeks. I did every two weeks on my first mortgage and it made a huge difference. You are right, tho, there is a fee to set it up but it was worth it to see the principle decrease more.

[cat98037]

Gunnar, I have so many CC, how do I tell which one has the highest rate? Also, if the highest rate CC has the highest balance, would I still pay that off first instead of paying off all the lower balances and working my way up to the other higher balances>

[cat98037]

bdhu2001, that was my exact question to Gunnar. Someone else mentioned on here to start paying lower balance off first and work my way up. 

[bdhu2001]

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@cat98037 wrote:

bdhu2001, that was my exact question to Gunnar. Someone else mentioned on here to start paying lower balance off first and work my way up. 

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I mentioned it in a previous post.  There may also have been other posters who mentioned it.  If you have an iOS device there's an app called Debt Free by mobileinnov.net.  Using it worked better than using my Quicken.  In addition it allow you to decide how you want to pay: highest interest, lowest balance, or custom.  It'll also show you how much interest you'll save with each strategy and when everything will be paid off.

You can also use the app to export your different scenarios and import them into your Excel spread sheets for "what if" scenarios and a reference point to refer back to. Your statement will usually show you what interest rate your paying.

[cat98037]

bdhu2001, very helpful information. Thank you. My loan officer contacted me and this is how accurate myFico.com is: My mortgage score is 600......just like myFico claimed. So, no refi for now but the loan officer is helping me with ways to get the score up in preparation for a refi later. I am grateful to have a loan officer that I have worked with in past and can help me raise my score. As far as debt, I think my only option now is to start with lower balances first and work my up. Some of the higher balances, like $3000, I can't put a dent in right now.

[Gunnar419]

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@cat98037 wrote:

Gunnar, I have so many CC, how do I tell which one has the highest rate? Also, if the highest rate CC has the highest balance, would I still pay that off first instead of paying off all the lower balances and working my way up to the other higher balances>

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Oh, I don't think you should have to worry right now about which has the highest rate! That's something a lot of other MyFicoans recommend, but a minority of us (and Dave Ramsay, who promotes the snowball method of course) think snowballing makes a lot more psychological sense, especially for people who are feeling desperately burdened and can't see their way out. That small victory of getting one balance paid off, then the next, then the next is a great motivator.

When you snowball -- which really seems the best way to go for you -- you don't have to worry about interest rates. You might want to consider them when you're much farther along, but you can cross that off your list of worries for the time being.

[cat98037]

Gunnar, thank you!!! That was going to be my plan. Some of the lower balances I can start paying. As stated, my loan officer ran my credit and sure enough, the mortgage score was 600, so myFico is really on point. My loan officer is also working on ways to help me get my score up, especially since he can see the actual credit report. So......here's to paying down debt.