Lisa0825 Posted April 4, 2007 Report Share Posted April 4, 2007 I had the house in which I am living put in my name a couple years ago with a home equity loan (it was inherited, and I had been making the payments since my mother died). It was 80% paid off, so I took a bunch of cash out for repairs and to pay off my defaulted student loans. My credit was a lot worse then. The report pulled by the mortgage company said it was 575, which surprised me, because I figured it would be even worse. Anyway, my scores have been rising with old baddies falling off and small new accounts collecting positive payment histories (plus the mortgage itself). I want to refinance again, to get lower payments and/or cash out so I can have more money for some more improvements. (more prinicple is not my main concern... having some money or cash flow is more important to me right now)But something occurred to me today while in the credit repair forum: my 2 biggest baddies are due to drop off by the end of this year. Initially, I was thinking my score would shoot up then, but now I am concerned that it will first drop due to my oldest accounts going away.So, my question is... do you think I should try to refinance with decent scores (most recent FICOs in my sig - I think the low TU was a fluke and should be higher when I buy a new set next month), or wait until the big baddies (COs in the $3-4K range with fees/interest) fall off, and hope my scores go up rather than down?Muchas gracias! Link to comment Share on other sites More sharing options...
firstsource Posted April 4, 2007 Report Share Posted April 4, 2007 My suggestion would be to get a loan now instead of waiting until the baddies fall off. I worked with a client that had a clean history - except for a collection account that was almost 7 years old. When it fell off his scores dropped considerably.I would suggest that you get a "liberal" loan program-that does not make you pay the old collections off-and then next time you refinance your scores should have recovered nicely.Charles Link to comment Share on other sites More sharing options...
Lisa0825 Posted April 5, 2007 Author Report Share Posted April 5, 2007 Thanks for the input! I appreciate it! Link to comment Share on other sites More sharing options...
hajimon Posted April 5, 2007 Report Share Posted April 5, 2007 the magic number for refi's do it now i wouldnt wait. However I wouldnt shop around yourself, find a broker who will look at your current copy of your fico reports, a good broker should be able to break down 3 viaable options for you.Stay away from internet offers on refi.will your current lend extend to you a equity line of credit at a good rate. check that out too.h Link to comment Share on other sites More sharing options...
Lisa0825 Posted April 5, 2007 Author Report Share Posted April 5, 2007 the magic number for refi's do it now i wouldnt wait. However I wouldnt shop around yourself, find a broker who will look at your current copy of your fico reports, a good broker should be able to break down 3 viaable options for you.Stay away from internet offers on refi.will your current lend extend to you a equity line of credit at a good rate. check that out too.hSo if my middle score is good, do they even blink if one is way lower than the others? Since my TU score was so much lower than the others last time, I was wondering if that would hold me back even if the others were still good. Link to comment Share on other sites More sharing options...
firstsource Posted April 5, 2007 Report Share Posted April 5, 2007 Credit scores:Most all mortgage investors are only concerned with the middle of the 3 scores (or if only 2 are available, then the lower of the 2) All of the bureaus use proprietary score models and sometimes there are only 3-4 points difference-but that is a rarity. Normally there will be as much as 100 points difference. Charles Link to comment Share on other sites More sharing options...
hajimon Posted April 6, 2007 Report Share Posted April 6, 2007 he is the mortgage guru. However, me personally if i were u lisa i would let firstsource handle your situation I bet he could get you where u need to be.mhoh Link to comment Share on other sites More sharing options...
Lisa0825 Posted April 6, 2007 Author Report Share Posted April 6, 2007 he is the mortgage guru. However, me personally if i were u lisa i would let firstsource handle your situation I bet he could get you where u need to be.mhohHe'll be hearing from in the next month or so:-) I actually discussed my situation with him last fall, and we decided it wasn't quite the right time for me then. Now, I need to get some minor repairs done and stuff so I can be ready for another appraisal. I should be in a position to get those done within a month or so. Link to comment Share on other sites More sharing options...
amortgageman Posted April 6, 2007 Report Share Posted April 6, 2007 I actually discussed my situation with him last fall, and we decided it wasn't quite the right time for me then.That's what makes him so good. Straight forward, honest truth. I would be willing to wager less than ten percent of brokers would make such a comment. To most it would be $$$$signs in front of their eyes, without a care for any perceived benefit to the borrower. Link to comment Share on other sites More sharing options...
Lisa0825 Posted April 7, 2007 Author Report Share Posted April 7, 2007 That's what makes him so good. Straight forward, honest truth. I would be willing to wager less than ten percent of brokers would make such a comment. To most it would be $$$$signs in front of their eyes, without a care for any perceived benefit to the borrower.Yes, he is very honest. He never told me "no, I can't do this for you." It was more like, knowing what I was looking for and where my scores were at the time, rather than talking me into anything, he just answered all my questions with facts. Knowing I could wait until a more opportune time, there was no rush to just make a deal. Link to comment Share on other sites More sharing options...
Recommended Posts