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Can having excellent DTI rate overcome a 640 credit score when applying for a refinance?
Posted on 2/14/21 at 9:06 am
Posted on 2/14/21 at 9:06 am
My credit score took a major hit when I discovered a few fraudulent accounts that were opened in my name. My current rate is 4.125 on an FHA loan. Im currently paying $160 in PMI monthly which makes me sick. The only debt I have is a car loan, and my current mortgage. Annual Income is $120,000
7
Posted on 2/14/21 at 9:08 am to purple18
How long have you had your current mortgage and have you ever had late payments?
Posted on 2/14/21 at 9:32 am to purple18
DTI isn’t a factor for interest rate but even with a 640 score you are getting a great rate today. Shoot me an email at lsu817@gmail.com if you want to discuss in more detail.
Posted on 2/14/21 at 9:39 am to npt817
quote:
How long have you had your current mortgage and have you ever had late payments?
Current loan started in 2015 and haven’t missed any payments. That’s my point....I haven’t missed any payments at my current rates along with paying off 3 vehicles on time but because my credit score is only 640 I can’t get a great rate??
Posted on 2/14/21 at 10:08 am to npt817
quote:
Can having excellent DTI rate overcome a 640 credit score when applying for a refinance?
So your credit score is the deciding factor when a lender decides on what interest rate is given? If I’m a lender I would want my business because it’s obvious there is very minimum risk with my application.
Would a co-signer with an excellent credit score be any benefit to me?
Posted on 2/14/21 at 10:31 am to purple18
You are going to want to do a FHA streamline refi. This is your best option. You will still be able to lower your rate.
Posted on 2/14/21 at 11:16 am to purple18
Credit Score, loan to value, term and loan amount are the factors that control interest rate. What do you owe on home currently and what would you say it’s worth?
Posted on 2/14/21 at 11:33 am to npt817
quote:
Credit Score, loan to value, term and loan amount are the factors that control interest rate. What do you owe on home currently and what would you say it’s worth
I owe $230,000. Loan amount was $272,500. Currently valued at approximately $305,000
Posted on 2/14/21 at 1:57 pm to purple18
You can try disputing those and see an increase in scores. The underwriter may want to see some legal documentation to support that claim.
Posted on 2/14/21 at 1:58 pm to frogtown
quote:
You are going to want to do a FHA streamline refi. This is your best option. You will still be able to lower your rate.
Not if the equity is there to go conventional
Posted on 2/14/21 at 2:08 pm to novabill
quote:
Not if the equity is there to go conventional
That’s my thought as well. Hopefully I can get me credit score high enough before the rates go up. I just can’t continue to throwing $167 a month for PMI
Posted on 2/14/21 at 2:10 pm to purple18
Im pretty much in same boat. I had a 750 credit score and forgot to pay a car...went down to 645. Mental mishap.
I want to refi very soon. I was going to end of January but the above happened.
Current
FHA 3.75 240k balance and worth about 365k
I want to refi very soon. I was going to end of January but the above happened.
Current
FHA 3.75 240k balance and worth about 365k
Posted on 2/14/21 at 2:37 pm to Tigeralltheway
quote:
FHA 3.75 240k balance and worth about 365k
Refi now. Savings from the MI alone will be worth it. Besides you will get a good rate, just not the lowest rate
Posted on 2/14/21 at 3:53 pm to Tigeralltheway
quote:
I had a 750 credit score and forgot to pay a car...went down to 645. Mental mishap.
Not trying to be rude or a Dick. But how do you forget to pay a car?
Posted on 2/14/21 at 5:15 pm to LSUtiger89
Cuz I thought I did. I usually schedule everything at one time. Reminder email went to spam folder. It was my bad.
Posted on 2/14/21 at 5:19 pm to purple18
Aren't there companies who can fix bad credit due to identity theft?
Posted on 2/15/21 at 2:40 pm to purple18
You can get a better rate. Reach out and I can give you some options.
Posted on 2/15/21 at 3:32 pm to deeprig9
quote:
Mortgage originators drool for clients like the OP.
Get him approved with low DTI, lots of assets, etc, but then beat him up on his credit score to jack his rate up a little, with no argument, and pad that yield spread. The poor sucker 'already knows' he's not going to get the best rate.
Not likely...if the borrower let's the LOs know that they're shopping around.
Posted on 2/15/21 at 7:42 pm to Tigeralltheway
But one missed payment won’t drop you 105 points. That’s multiple missed payments.
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