Will refinancing my mortgages lower my credit score?

Asked by Saylor6, Kansas City, MO Mon Sep 13, 2010

I have three mortages on three investment properties about a 60% paid off. 92k left on 160k.

I want to combine the three to one investment property and have one payment. This will lower my monthly payment. The house will support a 70% cash out.

The down side is it may be a good idea as I am paying more principle than interest right now.

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Linda Lorenzo, Agent, McKinney, TX
Mon Sep 13, 2010
I agree with Dan your overall cash flow is the important issue. FICO scores fluctuate all the time - up as well as down. If you have a high score now then go for it. You need to find a good lender to assist you to help your figure your best options especially since you mention the you are paying more principle now.
1 vote
, ,
Wed May 22, 2013
No your scores will not drop merely because of a refinance. Try to use a broker vs one bank as a broker will pull one tri-merged credit report and shop you around with various lenders, where as one bank can only offer you their programs and if you do not like you will have to walk into another bank which means another credit pull.

Have a great day;

Christina Solorzano;
CEO & SR Credit & Mortgage Consultant of
Everlasting Credit Repair
Making home ownership more than a dream...
Retired Mortgage Banker
0 votes
Dan Tabit, Agent, Issaquah, WA
Mon Sep 13, 2010
Consolidating your debt can be a good idea, but it sounds like you'll be elimination debt on 2 properties and increasing it on another. At 70% LTV you should be able to get a competitive loan, even for non-owner occupied. Talk to a creative local lender to work through the various issues which will come up in the process.
As far as your credit score is concerned, an inquiry costs about 3 points, but you can have multiple inquiries in a 10 day period with different lenders and only be hit once if they are all mortgage lenders. The overall effect is hard to judge because in theory you're overall debt will be roughly the same, but you'll be encumbering one property so much heavier. I'm not sure I'd make my score a decision maker in this, it really comes down to whether or not the total deal makes sense and improves your cash flow.
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