Can anybody guess or know for a fact if I refinaced my mortgage and did "CASH OUT" and paid off all cards and closed everything, except AMEX BLUE and one VISA/MC WOULD IT HELP ME OR HURT ME F.I.C.O. WISE??? I got offer for 6.37% 30 years...
That is a GREAT rate. TAKE IT !!!! It will definately help your score and you may be able to write off the interest, unlike credit card interest!!! DO IT !!!
The bank offered you 6.37% with a FICO of 690? What were they thinking? You have no BKs, no collections, and no lates and over $100,000 of credit. (Just teasing). On a serious note it sounds like a good idea and the interest rate is great. Currently, what is your interest rate on your home and is it enough to out weigh the costs of refinancing? Although I would suggest paying off your credit cards consider closing only two every six months. Otherwise, I think you could hurt your FICO score tremondously especially with as much credit as you have. Best of luck in whatever you decide. Dani PS Does this mean you are getting rid of the good old Discover Card?
George, Congrats on the rate, it sounds terrific, and the refi sounds like a no brainer <g> Now I preface my thoughts with a statement to the effect that I am not an expert, and that my opinions are based on my research over the last few weeks.. In my opinion,..the question as to the effect on your FICO is not so easily answered.. paying down balances is a GOOD thing.. but closing the accounts may not necessarily help you... particularly if the accounts have been established for a considerable period of time. History, and the fact that you have accounts available is usually considered a positive thing...if those accounts are recent, however, I am not sure the verdict is as clear.. I would think that if you have the discipline to maintain the zero balances, and not rack up the charges again, it might be advantageous to hold onto the cards, assuming you aren't paying undue carrying charges...and use them perhaps once or twice a year for a tankful of gas, or a grocery purchase, or some other purchase that can be paid off immediately.. showing no activity on an account is not necessarily good either! <you get the feeling that things are as clear as mud?!> Congrats again, Paul
Re: Why re-fi for 30 and not 2 I had previously been told to refinance for 30 years unless 20 years is a lot better percent wise...it hasn't been a lot cheaper. If you like get a $1,000 BONUS check you can always pay towards principal, and "LOSE" a few years...and you can every month pay $50.00 or $100.00 extra...on the other hand...if things got tight, you could CUT BACK to the normal payment. I know slightly larger, but you can't cut back if needed. A relative of mine pays $50.00 to $100.00 extra every month he can, his 30 years should be over after ~18 years I think he said.
