IF your looking to purchase a home its a good idea to not mess with your credit too much... i would ask the relator if that would be a good idea becuase its so easy to get a home at a awesome rate right now.
It's best not to take out any new loans (especially large loans), but if you're simply refinancing a current loan, without adding to the balance, to achieve a lower rate that should not have much negative effect on your credit score.
It's not as easy but it is still not that difficult. Whether or not you refi your car you should get with a mortgage person and get them to look at your credit and let them tell you if there is anything you need to do to better your chances of getting the loan/interest rate you want on a house next year. If you need any recomendations for good mortgage people I can get you a couple names of the better ones that my wife works with, just email me through the board. My wife is a realtor with Keller Williams in Katy and has 10+ years experience.
It shouldn't, but it does. You will be asked about anything you do to affect your credit. It's actually best to not do ANYTHING to your credit before you apply for a mortgage. Unless you're paying something off.
Truth. No news is good news on your credit score prior to applying for a mortgage. Any little activity they hyperanalyze and freak the hell out over. It's such a silly, bassackwards process.
Yea, don't do it. Just refinancing shows weakness and these mortgage brokers/underwriters sniff it out and will hold it against you like you've da herp or leprosy. As Donny said, no news is good news.
do yourself a favor and pay off the car loan as quick as you can and drive it until its dead. The average American spends $420 a month on a car loan...Thats $5,000 a year on something that will always go down in value. Pay it off and put that money to better use for a while. As far as the mortgage, try your darndest to get a 15yr loan instead of a 30 year. If you can't get a 15yr loan, at least pay an extra $100 on your mortgage each month for the principle - trust me..it will help A LOT. You'll save so much more in the long run. Also, try to keep your mortgage payment somewhere under 25%-30% of your monthly take home income. good luck with the new house.
Refinancing your car one year out of a home purchase is NOT going to damage your credit in any significant fashion whatsoever. Do you know what your credit score is already? Actually, it will probably slightly improve your credit because you will have a better debt/asset ratio. The fact that you'll have an additional line of information where you paid off one loan and refinanced it with another isn't something to be scared of. As long as you already have a decent credit history, you're fine.
Wanted to chime in as I'm going through the same thing... Selling my home in Katy, buying a new one... Refinancing your car, for lower APR and monthly, will NOT help much, but will NOT hurt. Underwriters view installment loans differently than revolving credit. Additionally, if you are waiting until next year, it won't hurt. Lastly, for underwriting, that would just help your debt-to-income ratio. I have a fantastic mortgage broker (as well as a home for sale now that he could get you in), if you ever want to get some numbers. Good luck, and get informed!
