Posted: 9/2/2010 3:15:04 PM EDT
| A guy I work with is paying 7% interest on his mortgage. I told him he should refi. He said he has bad credit from about 8 years ago. Will that still effect his ability refi at a better interest rate? TIA |
|
Quoted:
A guy I work with is paying 7% interest on his mortgage. I told him he should refi. He said he has bad credit from about 8 years ago. Will that still effect his ability refi at a better interest rate? TIA Baddies drop off after 7 years, except Bankruptcies , they saty on for 10 ..... chances are he is doing something wrong. www.creditboards.com Arfcom for credit 
|
|
http://www.annualcreditreport.com It's hard to say what he'll be in for without knowing what's dropped off of his credit report and what's still on it. |
|
Right now lenders are still being strict. Good.
I just did a refi from 6.75 to 4.25 and they wanted every piece of documentation up to date, paystubs, tax returns, bank statements, etc. They called my work to verify employement when they underwrote the loan and 30 minutes before I closed. 
My avg credit score was 780. I have "perfect" credit and 760 was the cutoff for the best rates. My LTV was 70% even after the crash in housing prices, but it still took the bank 3 weeks to approve. God help you if you don't have all your papers in order. The net result is my payment goes down below $900 a month and I removed several years off the term of my mortgage. I pay less for my house than I did for an apartment 10 years ago. |
|
Quoted:
This guy isn't even trying to refi. He has 19 years to go on a 30 year note. I told him he has nothing to loose. Crazy! ITs been 8 years, he should be good to go. No bankrupsies (sp?) just was really lax about paying bills If he was lax in paying his bills 8 years ago (without bankruptcy) , he has perfect credit now. |