do credit scores go up or down when refinancing a property?
358189
of course, your credit will go down by some point initially but you can cover it up in few months paying your monthly payments on time. The best way to save your credit at time of refinancing is to consolidate some debts if you have like your car loans, credit cards or personal loans etc. this will stop your credit to go down by some points. Moreover if you pay high closing cost that will affect your credit less as compare to low closing cost.\nHope you got the answer you were looking for.\nThanks and Good luck
692118
The higher the limits gives you a better FICO score, the available credit can lower your score (i.e. maxed out cards). If you pay off your cards and keep the accounts open you will have a positive affect on your credit score.  Six months of on time payments can boost your score by 15 points, that's how I raised mine.  I have one revolving account(credit card) and one installment account(car payment) and I've raised my score in the last 3 months by 22 points.
144379
When the interest rate changes downward and you have a loan that you pay a higher rate is the only time to consider it simply to save money.\n\nThe problem is that you have to pay loan origination fees, and possibly points (if you are paying points then the rate really wasn't lower like you thought). So there is some rate that gets eaten just to break even. I don't have any exact numbers, but what you do is take the fees and compare to the monthly income stream that makes the loan different. \n\nIt is very important to take into account the extra payments at the end of the loan. If you only owe for 27 years on your 30 year loan and you get a new 30 year loan then you have 3 extra years of payments. These are way out there and so the interest rate drops the value in todays dollars, but you still need to take it into account.\n\nUsing a financial calculator or spreadsheet you can then calculate the interest rate you would in effect be getting on the "refinancing investment" you are considering. If the rate is high enough to be better than any other option you could spend your money on (opportunity cost) then refinance. \n\nSometimes you can add these new fees to the loan and you owe more, so be sure that you don't do this without realizing it (add it into the spreadsheet calculations). In fact this is sometimes actually the main reason to do it.\n\nIf you own a rental property that has appreciated in value you can refinance it with a new loan for the specific purpose of getting the money out. You will have a higher amount owed and therefore a higher monthly payment, but presumably the income has gone up and can support the higher payments. Then as the expert real estate investor you can earn a much higher rate with your new cash or you just wanted some income without being taxed. Either way its a cool thing to do. \n\nTax free money for equity, gotta love it.
206298
Depends entirely on your lender, in terms of fees, prepays of interest, which loan term you choose, whether you go through a broker or direct lender, etc.  Ask around, get some offers, and compare.  Also, they should tell you how long it will take you to recoup the cost of the refinancing--and you can consider whether or not you'd still be living in the house at that point, or will have sold it.
968444
yes its changed. The so called credit score is not even used by most lenders now they have a modified version of the fico it being phased out for a while now. \n\nThe lenders changed it because of the ineffeciencies in the credit score and wildly reporting innacuracies from the three top guns. \n\nI would not sweat it the "credit score" is now pretty much meaningless.
941026
I suspect you want ball park idea rather than an exact quote.  As a rule figure 2.5 times your annual income is what you can get for a house, in your case lets say $135,000.\n\nYour credit score indicates you might want to aim lower to get financing, perhaps a small condo, then build score up.  The lower the credit score the more difficult it is to get financing and the higher the rates.  Building your score up doesn't take long, but does require effort.\n\nThese are just guesses, many variables come into play, but hope this helps a bit!\n\nCongrats on future new home!
1024379
I am a mortgage loan officer, and work with credit issues everyday. As to what you are referring, I have heard of this but never done it. Would be curiuos to see if you as the consumer can get all three bureaus to report the same information. \n\nThe reporting is done from the creditor's side. They report to whomever they choose.. typically depends on your local region. For example, smaller based creditors in the SouthEast will typically report to Equifax. Larger national companies may report to all three. How they would gather the information is more my question.\n\nNow, in regards to how to improve your scores, I believe you are getting some mixed advice. You must understand how the scores are built before you can determine what will impact good or bad.\n\nMajority (but not all) of your credit score will be based on the past 24 months. So in other words, if your credit history over the past 2 years is mostly bad, your score will reflect that. Old credit may hinder scores slightly, but will not comprise the majority of your score.\n\nOld negative items may not have a major impact on scores, but can prevent you from getting over the 700 score mark and maybe even hinder you with certain lenders.\n\nMy suggestion to anyone trying to improve credit is this: Get on time with ALL current open credit, add good POSITIVE credit to help push scores up, and depending on your purchasing goals you will work on your old negative items now or later. For example, looking to buy a car or home within 90 days... leave the old stuff alone. Looking 1-2 years down the road, pay it off.  Why?\n\nPaying off old negative items will update the item to something within the past 24 months (Date of last activity) and will be factored more highly in your scores. So paying it off now will bring your scores down! (Yes, that does sound contrary, but it is what happens.) If you want to buy something sooner than later, do what you can now to boost your scores (i.e. Good credit) and then attack the old stuff after you buy what you needed.\n\nIf you attack it now with a long term goal in mind, your scores may suffer in the short term, but with the added positive credit and paying off of old credit, you will have sweet scores in the long term.\n\nSee the information below on where to find the good positive trades and how to work them to your benefit.\n\nGood luck!
1138044
Regulated lenders require at least a 500 credit score.  Below that, you have to go to a so-called "hard money" lender.  Depending upon your situation, however, it may be better to consider selling.  Rates are higher now than they have been, and if your credit score has decreased, as seems likely if you're close to foreclosure, you're unlikely to get a rate as good as you had.  One way or the other, you've got to be able to make that payment, and if you can't, refinancing into a negative amortization loan or something like that isn't going to really help, only give you time to dig yourself deeper.\n\nA corollary question to this is how much equity do I need?  The lower your credit score, the more equity you need for the bank to consider it an acceptable loan.  The higher your equity, the more options you have.
616285
With your score you may be able to do a cash out refinance, but not a home equity line of credit or second mortgage.  Why not work on raising your credit score before you do anything?  A year of paying all your mortgage payments on time will help you considerably.  If you're in Ohio, I'd be happy to go over your specific scenario with you.
197685
It all depends on why you would want to refinance.  Especially, if you don't plan to stay there too long.\n\nIf you want to refinance to lower your rate, it should really depend on how long you plan to stay therer.  This is due to the associated closing cost you will be responsible for when you refinance.  The cost that you pay may not be significant enough for you to refinance for a lower rate.\n\nIf you want cash out, then once again, the closing cost comes into question.  Will you make enough to cover the closing costs.\n\nIf you would like some cash, and do not plan to stay there more than a year, then I suggest you get a line of credit.  Most lenders do not charge you for line of credit and if you don't use the money, you don't pay interest on it.\n\nHowever, line of credits are considered to be 2nd mortgage and have higher interest rate than your primary 1st mortgage.  Also, the rate will most likely be variable.\n\nSo, the question you need to ask yourself is:  How long do you plan to stay there?\n\nBy the way, if your broker tries to charge you for the line of credit.  Don't do it.  Most lenders will NOT charge you for it.
638203
Yes in one sense but in reality no!\nIt will increase the pride and knowledge of knowing you owe less, can keep more if your sell, should understand your investment more, regarding what areas if you refinance the home in terms of how to invest the diff, invest wise and spend wise, you have more to gain with equity than without any!
443042
No... All lenders will try to "retain" their customers... to be honest I don't now what they meant by saying they'll sign off on it.  When you refinance..the title company will order what is called a "pay off" from your current lender....  Once you sign documents and your state recision period is up (in california it's 3 days) the new lender will wire the funds to pay off your existing lender
458920
I agree with above.  As far as your credit score, your points goes down with the amount of open accounts you have because you have the potential to fall under hard times and max out everything without paying it off. You would not only have to consolidate everything to your home equity but send a note with all final payments that you want the accounts closed completely.  Within 30 days it will begin to raise your credit score.  \n\nThe inquiry into your credit for your equity loan will make your score go down 3 points and if you have more than 3 inquires a yr into credit you're looking at 5 points per inquiry.\n\nThe interest you pay on your home equity is tax deductible and credit cards are not.
916280
This will show up as a Foreclosure and ruin your credit. \n\nIt will be very hard for you to purchase a new home in your new state, not impossible but very very hard. You'll be looking at an interest rate of 9.5% on up. \n\nMost lenders won't finance with a Foreclosure on your credit report. I would suggest a REFI w/ Foreclosure Buyout.
1124425
the rate that it could adjust to is posted in your note! read your note. You need to refi this note to a fixed rate. With that start rate you must have had some credit issues. Start the process today. I am a loan officer in TN only>
112859
If you have satisfied the debt and it's showing a $0 balance, that is not an inaccuracy.\n\nIt also does not bring down your score unless your payment history for that account show slow pays beyond 30, 60 and 90 days.  Additionally, it also brings down your score even if you paid down the account if the payment was received in response to a collection or a chargeoff.\n\nAlso, the reporting of a credit account does not, by itself, bring down your credit score.  Other factors come into play such as\n\n1) How old your credit history is.  \n2) What types of credit you have/had: revolving (credit cards, etc), installment (car loans typically), real estate (mortgages).\n3) Your repayment history and whether your accounts are paid as agreed or whether there have been slow pays\n4) Whether there have been garnishments, collections, liens, bankruptcies\n5) How many inquiries have been made in the past few months (i.e. have you been applying for loans all over town or trying to get credit cards)\n\nUnfortunately, I think you're out of luck on this one.  \n\nUnless you have grounds to have those accounts removed (e.g. that wasn't your account, the payment history is inaccurate), they will continue to be reported for about 5-7 years.  \n\nThe reason for this is that, before approving your credit application, creditors want to know how well you repay credit lines and loans in the past, not just the accounts with open balances.  They also want to know if you're carrying too much debt.
765312
YES!! The difference between a low and a high interest rate will cost you hundreds of dollars a month and tens of thousands of dollars over the life of the loan. Why are you getting a bad interest rate to start with?? If it's because of bad credit, take 6-12 months and fix your score. It will pay off big time in the end. You can always refinance, but there's no guarantee that interest rates will go down. They may even raise....drastically. So get a good fixed rate when you're in the position to do so!!  Best Wishes!!