The recent home appraisal thread gave me an idea for my own refi-related question. I'm not sure if anyone will have much advice other than "pay down your debt and try again", which is perfectly fine, however it's worth a shot given the wealth of knowledge on this forum.
I've been in my current property since 2014, have an FHA 30-year fixed mortgage at 4.125% currently. I do still carry mortgage insurance. My current balance is $123k, and my Zillow "Home Report" puts my home value at $245k. That's ridiculous, however I do think that $210-$215k is reasonable for sake of discussion.
I'd like to take advantage of the current rates, drop the PMI, and (likely) stay with a 30 year mortgage. It seems to me that I have more than enough equity to get approved for at least some form of standard fixed-rate mortgage somewhere in the 3% range. That being said, here's the kicker: due to my foolish early to mid 20's, my credit utilization and consequently credit score are less than stellar. I have maybe $15k in CC debt with a utilization around 90%. Terrible, I know. I'm doing what I can.
I never pay bills late, everyone gets their piece of the pie, however banks don't seem to be willing to handle the refi. I'm not looking to take out an equity loan or HELOC, simply modify my mortgage into a new one. Shouldn't the assumed value be enough? The county has it valued at somewhere in the $180k range, which given the market here in the Twin Cities is low but not unreasonable.
If I'm out of luck, so be it. I'd bet I could still get the PMI removed which would save me ~$150 a month. Something is better than nothing, after all.
I've been in my current property since 2014, have an FHA 30-year fixed mortgage at 4.125% currently. I do still carry mortgage insurance. My current balance is $123k, and my Zillow "Home Report" puts my home value at $245k. That's ridiculous, however I do think that $210-$215k is reasonable for sake of discussion.
I'd like to take advantage of the current rates, drop the PMI, and (likely) stay with a 30 year mortgage. It seems to me that I have more than enough equity to get approved for at least some form of standard fixed-rate mortgage somewhere in the 3% range. That being said, here's the kicker: due to my foolish early to mid 20's, my credit utilization and consequently credit score are less than stellar. I have maybe $15k in CC debt with a utilization around 90%. Terrible, I know. I'm doing what I can.
I never pay bills late, everyone gets their piece of the pie, however banks don't seem to be willing to handle the refi. I'm not looking to take out an equity loan or HELOC, simply modify my mortgage into a new one. Shouldn't the assumed value be enough? The county has it valued at somewhere in the $180k range, which given the market here in the Twin Cities is low but not unreasonable.
If I'm out of luck, so be it. I'd bet I could still get the PMI removed which would save me ~$150 a month. Something is better than nothing, after all.