Should I refinance with my husband on the loan?
I am trying to repair my credit.(675), In June I will have 12 mrtg payments on time and want to refinance the house. I did not qualify for a modification to lower my interest rate (6.5%), they did however put my 2 late payments on the end of the loan. My husband is not on the mortgage,we were not married when I bought the house. I have 2 credit cards with high % owed. I am going to take a TSP loan and pay them down to 10 %. My husbands credit report only has 2 cc on it with low balances. His score is 638. We are in need of a new car. Here's the big question... Should I refinance with him on the loan ? He profits 25 k after tax $. (self employed carpenter) I gross 55k. Would using his income and his credit get us a lower interest rate on a mortgage? If we get a new car on his credit would that effect getting him on the loan.( reasonable 20 k car)? Also how long after paying down my cc debt should my cc score improve? by jaimef_897_544 from Lawrenceville, Georgia. Mar 5th 2012
Ignacio L Taboada (itaboada)
#47 ranked lender in Georgia - 23 contributions
You should probanbly refinance bu yourself before you buy the car.You may want to consider FHA to refinance to get the lower rate because of your credit score.If you have any quetions you can reach me at itaboada@phoenixglobalmortgage.com.Thanks
Ken Baltes (kbaltes)
#16 ranked lender in North Carolina - 242 contributions
Pay down your revolving accounts to below half of credit limit and keep them there or lower. In June repull your credit and refinance your home.(I cannot tell if you will have a debt-to-income issue with the information you provided.) It will be better to keep husband off the loan due to his lower score. Put off buying car until after you refinance.
Bert Carpenter (BertCarpenter)
#37 ranked lender in Arizona - 2,431 contributions
You didn't indicate how much you owe or what your property is worth, or what type of loan you have (FHA or Conventional), so this advise is not as good as it could be. If you have less that 20 % equity, you are probably smarter to go with an FHA loan. FHA can refinance up to 96.5% of the appraised value, and as long as your credit score is at or above 640, you will get the best rates. FHA does require mortgage insurance, but if you don't have 20% equity, so will conventional. If you go conventional, your score is going to be factored into the rate you get. Until your score is above 740, there will be some form of premium built into the rate. Also, since score doesn't factor into FHA rates, you may not need to pay down your cards. It may be smarter to let your TSA continue to work for you, instead of paying off the cards. My advice is to contact a local Mortgage Banker/Broker, rather than one of the big banks. Unlike a bank employee, who is most likely just an order taker, a Mortgage Broker/Banker is Trained, Tested and Licensed in all aspects of Mortgage Origination. He/She will have access to loan products of many lenders, not just those of one bank, and can properly guide you. But more importantly, He/She is trained to take a look at the various different options available to you and guide you into the one that makes the best sense for your situation. Don't forget to check out your selected Mortgage Originator at the National Mortgage Licensing System at www.NMLSConsumerAccess.org ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ www.LoansA2z.com
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