We were able to refinance our home which had a 10.85% rate 13 years remaining.Are new rate is 8% 10 year fixed mortgage.Paying off all my credit card bills 9 of them with a total of 11500 balances.What is great about this is our new mortgage payment cut 3 years off our mortgage,and paid off all credit cards.I was told my fico was 590.Can't beleive it.Will my fico go up now?I am closing the following accounts Providian,Orchard.Sears,Capital One (3) cards,fcnb and Direct Merchants.These were all sub prime cards with interest rates from 19.9%-24.9%.Yippee!!!!!!!
WOW, That is great news..... I will be looking to refinance my mortage soon and just showed my hubby your post. Believe me, my interest rate is higher than yours and I cannot wait until I am in a better position (soon) so I can refinance. Congratulations!
Congrats! Two things, though... The biggest mistake people make when they refinance their mortgages and use the refinance to pay off credit cards is that they run their credit cards up again. Be careful and in control. The second thing is that you should be careful not to close too many accounts. You might want to close some, of course, but keep some with the longest history and highest credit limits to keep your FICO score up because they base a large part of the score on your debt to CL ratios. Who knows, in a year you might want to refinance at 6.5 to 7% or get a new car so you still need a good FICO for the future.
