Refinance.
Thinking about refinancing to pay off credit cards. If credit cards are submitted for payment in escrow does that help by reducing monthly debt payments? Is it easier to refinance 85% rather than a 90%? by Patmetzger541 from , California. Oct 2nd 2019
Dan Paladin (dpaladin)
#356 ranked lender in California - 792 contributions
Paying debit via escrow does lower your debt ratio to help qualify. So yes lower debt payments as it is considered "paid". In general lower LTV can be make it easier to qualify. Feel free to contact me. 562.254.5616
Cody Bellah (cody@communitymortgagekc.com)
#17 ranked lender in Missouri - 78 contributions
Yes it helps a lot. It will reduce your overall DTI
Joe Metzler (JoeMetzler)
#17 ranked lender in Minnesota - 4,843 contributions
Yes, no and maybe... Sorry. By itself, no, but yes if it helps you lower your debt-to-income ratio to qualify, or to meet some other loan qualification threshold. Side note, all your traditional loans (Fannie Mae / Freddie Mac, FHA, etc) are now a maximum cash out of 80%. VA loans still allow up to 100%, but anything over 90% and they kill you in the interest rate. Non-QM loans generally will allow up to 90%, but also kill you in the interest rate. I lend in MN, WI, and SD. I can be reached at https://TwinCityHomeLoans.com (NMLS274132)
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