Loan Scenario: MD, $660,000, 690, 78% LTV, Refinance (Rate and Term)

REFI to 30-year fixed.  Looking to stay in home for 10 years at least...looking to pay off large amount of revolving debt to increase FICO to north of 720 before February.  Focus on this and let rates do what they will for the next 4 months or look now, knowing the FICO's will not allow the best rates?  Thoughts?

You will need the higher fico. Howard Co's $560,000 loan limit for conforming jumbo is your biggest obstacle. I only know of one portfolio jumbo lender that has good rates but they will require at least a 720 score and the LTV cannot exceed 75%. I don't know of any banks with good interest rates that will go to 80 LTV in your situation.

Don't worry too much about about rates. All signs are pointing towards favorable market rates through at least early spring. We will have some peaks and valleys for sure, but the end of the low rates we are having now is probably farther in the distance than most people think.

Good Luck!

If you can't pay down the balance to get to the Super-Conforming limit that Bob mentions, then I think you're biggest worry is the appraisal value.  And many analysts are still projecting for housing prices to decline into 2010.  So, waiting to improve your FICO may hinder your home value too.  I'd take a look at what the pricing is assuming your current FICO of 690 and say a FICO of 720 and based on the difference make the decision from there as to whether it's worth waiting or not.  It's likely that you won't be able to get your FICO to 740 or 760 (the thresholds for the best jumbo rates for most lenders), if you have a good amount of revolving debt / high debt utilization ratios as well.  Check out a credit monitoring site that allows for a hypothetical scenario that will give you future estimations of your FICO if you make certain credit changes.

Have you considered obtaining a 1st loan of $560,000 and a second loan of $100,000 in the form of a HELOC?

Hello Thunderfish,

I'm with a Nationwide lender and a Federal Credit Union that specializes in Jumbo cash out loans down to a 680 fico.

We will require at least 12 months of the mortgage taxes and insurance payments ( 401savings, ira ect. ) to be held by you in reserves.

If you would like to speak further please call 972-201-1645 and visit our website www.advancial.org . 

Thank you.

John

I have a program that you will like. Feel free to contact me, I'm local and am happy to meet with you to discuss your options. My company carries an A+ rating with the BBB.

Steve Abelman VP FreeStar Financial 301-468-0900 www.gofreestar.com