will i get approved? what rate?

[jdxprs1]

considering a couple options. one is a strait refinance to a 20 year fixed. the other is a refinance to a 30 year fixed with about 100k cash out. the 100k cashout would be used to buy a small vacation home.

my situation....

currently owe 160k on a 30 year fixed with 24 years remaining. its at 5.375.

the house is worth about 405,000 according to zillow.

debt to income is 29% when based on base pay only, and .15 based on average actual pay for last 24 months.

fico 2, 4, and 5 scores are 535, 610, 624 as of Feb. 19. I've had a few negatives removed since then. Fico 8 scores have gone up about 25 points since Feb. 19, but no idea what increases the mortgage scores have seen.

based on all three reports, i have 1 medical collection 1k, 2 cap one charge offs 800, 600. one $260 collection from an old hsbc card, and 1 $700 amazon collection from old amazon card.

current mortgage started in 2011, has a total of 5 lates, with none in the last 12 months.

as ive been actively rebuilding my credit, i have opened 6 new credit cards since dec. 2016. currently all balances are 0 except one, that is $150. not sure they are all REPORTING as zero though. some had small balances that i just paid off in last couple weeks.

[jdxprs1]

income for last 2 years is 135k and 160k.

[jdxprs1]

time at job is 14 years, and same industry for 25 years.

[Anonymous]

What would be the purpose of the refi?  At your current scores (not sure you could get approved) the rate would be about the same.

[jdxprs1]

After speaking with mortgage guy today, I can tell you that you are 100% incorrect.

[Anonymous]

Great to hear - I went by bankrates mortgage rates by credit score which had your mid score at 5-5.9%.

[jdxprs1]

right now, im being offered 20 years at 4.25 with 1.75 discount points on 160k. 4.625 with no discount points.

or i can get 260k at 4.875 with 1.5 discount points. 

both loans cost about 11k closing costs.

are these good deals?

i should have something to compare them to tonight after speaking to a mortgage lady at pnc.

[VALoanMaster]

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@jdxprs1 wrote:

considering a couple options. one is a strait refinance to a 20 year fixed. the other is a refinance to a 30 year fixed with about 100k cash out. the 100k cashout would be used to buy a small vacation home.

my situation....

currently owe 160k on a 30 year fixed with 24 years remaining. its at 5.375.

the house is worth about 405,000 according to zillow.

debt to income is 29% when based on base pay only, and .15 based on average actual pay for last 24 months.

fico 2, 4, and 5 scores are 535, 610, 624 as of Feb. 19. I've had a few negatives removed since then. Fico 8 scores have gone up about 25 points since Feb. 19, but no idea what increases the mortgage scores have seen.

based on all three reports, i have 1 medical collection 1k, 2 cap one charge offs 800, 600. one $260 collection from an old hsbc card, and 1 $700 amazon collection from old amazon card.

current mortgage started in 2011, has a total of 5 lates, with none in the last 12 months.

as ive been actively rebuilding my credit, i have opened 6 new credit cards since dec. 2016. currently all balances are 0 except one, that is $150. not sure they are all REPORTING as zero though. some had small balances that i just paid off in last couple weeks.

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Hi Jdx,

I would look for a quick way to boost your scores in order to improve your rate/costs. One way to do that (depending on how the accounts are reporting) would be to pay off the 2 Cap One charge offs & do a rapid re-score.

[jdxprs1]

Valoanmaster,

You were 100% correct. Those 2 capital one accounts were costing me over 50 points.

[VALoanMaster]

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@jdxprs1 wrote:
Valoanmaster,

You were 100% correct. Those 2 capital one accounts were costing me over 50 points.

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Hey Jdxprs1,

Glad I was able to help.

Thanks,