Actually you 'might' see a slight decrease when it is marked 'closed' - mix of credit thing.
What I would suggest (don't know the final payment date on your car loan) is to try to apply for the mortgage when you have less than 10 months left on the life of the loan - doesn't count in DTI but still keeps your mix of credit. We paid 3 car loans down to do this (and work the system to our advantage) - could have qual'd without doing it but would have had to document multiple sources of income to do so (and weren't willing to do that). All the income is on our tax return but would have had to pay lawyers/accountants at least a couple thousand to provide the documentation. The other reason was for contract negotiation (financial info sheet required with contracts here). Asking for 12K in seller contribution when you have 100x that amount in an investment account (and have to show that because of the loan qual) isn't going to get far.
I have never heard of a way to get a name off of a mortgage with a re-fi (there is one way - if you die and the mortgage is joint). If there IS one - I want to know about it.
Message Edited by Lady_Scarlet on
01-30-2008 07:45 AM
