This is my situation, right now my rate is 7.something% fixed. My credit is horible, under 500. I was wondering if refinancing(we have someone that'll give us 9.99% for 2yrs,then refi or buy) will help out our credit score so that we could by a bigger better home within the next year or so. Please help, thanks
2007-04-12 16:27:26 · 7 answers · asked by mchllherman 1 in Business & Finance ➔ Credit
Absolutely not! Companies want to know that you stick with them, and you are reliable on your payments. Flip-flopping companies is a terrible idea! If you have a loan with 7.5% or whatever, thats not too bad! Stay with it. If you have bad credit, it means that you probably can't afford a newer house anyways, so you should put off that dream for a while, while your credit and income improves. Why on earth would you take a 9.99% loan when you have one now with 7%? Your home might be bigger and better, but your bank account will be tiny and over-drafted!
2007-04-12 17:25:35 · answer #1 · answered by chaseunchase 4 · 0⤊ 0⤋
The only way this will help your situation is if there is enough equity in your home. You can only go to 65% to 70% max LTV based on a sub 500 score. The only way this would make sense is if you consolidate all your debt and have one standard payment that you can afford for the next 2 years. Having perfect payments for 2 years, even 6 months, will increase your score significantly. It all depends on if you have a lot of debt, late payments, enought equity, and the cost vs. benifits add up. Make sure you do a lot of research before jumping into this type of loan. If you have further questions, go ahead and email me. I hope this helps. Ngrant@pacifina.com
2007-04-13 07:33:40 · answer #2 · answered by Nathan Grant 2 · 0⤊ 0⤋
For a gigantic acquire equivalent to a apartment you will have to be within the mid to prime 600s to get a fair curiosity price. The quality manner to elevate your credit score ranking is to get a bank card (no matter what the restrict is) cost a few stuff this month make the minimum cost subsequent month and pay it off the month after that. That increases your rating speedy given that it indicates up as dept paid in complete. It is as in the event you took out a mortgage and paid it off given that the file does not exhibit a greenback quantity. But as for purchasing a apartment I could attempt to get your rating as much as prime 6's low 7's. Just be carefull there are alot of creditors who will set you up with a mortgage that is no longer the quality deal for you with a floating price. Be care complete and well good fortune along with your apartment
2016-09-05 11:53:43 · answer #3 · answered by ? 4 · 0⤊ 0⤋
I am going to say NO. Opening new accounts does not improve your credit score.
Also based on your score I would stick with your 7% rate. I would be pretty sure your 9.99% deal is not as good as you think.
2007-04-12 17:50:54 · answer #4 · answered by Gatsby216 7 · 0⤊ 0⤋
Buy what is within your capability. Getting larger loan amount means getting deeper into debts. Getting into deeper debts mean bad credit score.
2007-04-12 16:32:33 · answer #5 · answered by SGElite 7 · 0⤊ 0⤋
This is a good question, and one that has intrigued me for a long time.
2016-08-23 23:31:55 · answer #6 · answered by Anonymous · 0⤊ 0⤋
Bottom line is that you need to pay your bills, all of them. And you need to do that without more debt!
2007-04-12 16:37:18 · answer #7 · answered by Still reading 6 · 0⤊ 0⤋