What to do with $1000?

[sharriel]

I have $1000 coming back from my tax refund.  I am planning on buying a house in June. I have not started saving for my down payment yet but that shouldn't be a problem.  My CC UTIL is at 49% right now.

Do I take the $1000 and save for the down payment or put it all towards CC to lower my UTIL which will make my FICO score go up and help me get a better interest rate?

[dtjones052209]

I think the answer to your question would be more of a personal choice. It would all depend on what are your goals. Are you trying to have highscores or are you comfortable with were you are now and just want to start saving.

A. How much of a downpayment are you trying to put down? 5% 10% etc.

B. If you plan to buy in June, would the 1k make a huge difference in your savings. Are you able to save in a 6 month timeframe to have money for a downpayment?

C. Can you pay your CC down now and give it a couple of months to report the 1%-9% bal on one of the cards and still save money for the dp?

Just throwing some ideas or thoughts out to think about.

[sharriel]

I keep going back in forth in my head with it. 

A.  I will need 3.5% or $4500.

B.  It would definitely help but I think I SHOULD be able to save it without it.

C.  Yes, I should be able to do that.

While I would love to pay everything off, I would love even more having 1/4 of my down payment.

[dtjones052209]

I hear exactly what you are saying. Your scores from looking on your signature are perfectly fine depending on the other factors of income and etc. I guess in the end if you are happy with a FHA loan and rate around the 4% range then you would be fine with saving and paying along the way granted no other things pop up and drop your scores.

YMMV(Your mileage may Vary)

Good Luck!

[edcampbell613]

Make sure to find a lender with loan options, I see plenty of non USDA close to 100% loans out there. There is a news of a 97% conv, allowing a 2% DAP, so you need 1% down, PMI is about half the cost as well. Just SHOP!