I am thinking about re-fianancing my home after only six months
Question: I am thinking about re-financing my home after only six months from the last time I re-financed. Due to low credit, I got slapped with a 7.2% interest 2-year ARM that I desperately want to get out of before the inflation bug starts hitting this whole country. My home has appreciated another 80K in the last six months. The home is worth 400K, and I need to pay off the existing 319K loan. This means I have 20% equity stake in the home. However my FICA credit score is only 634. Due to that I guess, to get the 6% interest rate I want, I’ll need to pay points. I plan to keep this home for 30 years at least. Should I just suck it up and eat the points (and roll it into the loan cost) for the nice 6% interest rate?
Answer: 50 points in 18 months?!?!? In 18 months, he should go up well over 100-125. I have a bankruptcy, CH. 7 that was discharged in 10/03. I pulled my FICO scores, and they were 501, 558, & 537. It is now 8 months later, and those scores are now 626, 671, & 651.
Here comes a some credit repair advice. The first thing the OP should do is pull all of his credit reports and dispute every negative item as “not mine.” You will be amazed at how many accounts do not get verified. When they don’t get verified, they get removed. On my Equifax report, I even got the bankruptcy removed by disputing it as “not mine.” There are only 2 accounts out of 9 that still mention anything about a BK. Once those are gone, you won’t be able to tell that I filed BK on that report – in less than a year! If you dispute a bunch of items now, in 30-45 days you could have your score jump 40-50 points if certain items don’t get verified by the original creditor.
Try reading www.creditnet.com & www.creditboards.com
There is a lot of good information on cleaning your reports.Keep in mind that this is both immoral and illegal. Those of us who value our character would never consider this. It is also amazing how many of these items will eventually get reverified and reappear a year or more later down the road.
Second, your bankruptcy notations might disappear from your credit report, but every credit app I have ever filled out has asked if I have EVER filed for bankruptcy or defaulted on a loan. You still have to answer that YES in your case. Failure to do so is fraud, in this case, credit fraud, which becomes a federal feloney.
This is not a good long term plan for building wealth.
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