Do credit unions always have stricter guidelines for rating a credit score?  I was told by Navy Federal Credit Union that a score of 710 is a "B" rating, but didn't ask what an "A" rating would require to take advantage of their best rates - they have yet to get back to me...I like NFCU as they have great service and I suppose are considered more stable than other financilal institutions.

I'm currently in the 4th year of a 5 year ARM and looking to lock in to a 30-year fixed (I plan to stay in this house forever!).  Is it worth working on raising the credit score (if that is possible to leap 40 points in 9 months?) or settling for an affordable rate in the next 30 days - with a float lock, in your opinion?

If I need to provide more info, let me know!  Thanks!

What are the first 2 explanations that the credit report lists as reasons that your credit score is not perfect?  These are having the greatest impact on your score, you may be able to raise your score quickly depending on the circumstances.  Depending on their guidelines, a score of 740 should put you in the A category.

It would be helpful to know what your current loan amount, current principal and interest payment, home value, and what loan amount, rate, and fees are being offered.  Also, does a locked rate have the option to float down or be renegotiated if rates drop? 

Thanks fo rhte reply - here's more:

credit score is not as high as it could be - still working on closing gap between available credit and existing balances - but have worked a bunch oin last year to get to this point and am making good progress...

current mtg is 614,250 Int-only ARM.  Resets in 10/2010.  Current paymet (int. only) is 3880.00.  There is a 2nd at 25,110.  Refi is for 640,000 to cover both in total.  House value (currently being appraised) is 825,000.  Rate quoted is 6-1/8 plus 1 point oringination.  New payment would be around 4600.00 (includes Real estate taxes of around 750 per mo).  This is a stretch, but doable, expecially if all balances are gone in the next several months - doable.  There is no fee for the float lock of 30 days.

I have posed your last question directly to NFCU, but not yet heard back

Thanks for your attention nad I await your advice.  I appreciate it all!

Are you a veteran that would be eligible for a VA loan?  If you are, have you had a VA loan before?

no - not a vet...(I am an NFCU member through my father - a Navy Vet - if that was the source of the question?)

Also found out that NFCU would upgrade credit rating from "B" to "A" with an uptick of 10 points.  In other words, my 3 scores (710, 710, 719) would need a middle score of 720 to be in the "a" category, which they told me could reduce rate by as much as 0.75%...this sound reasonable?

Also, I was told that NFCU does not offer the opportunity of moving the rate once locked.

The good news is if I decide to pull up on the current refi, I can get my fees back (appraisal, etc.) no problem...I may do that, get that score up and go from there...

Thanks, again!

720 is a common break point for better rates.  0.75% to rate seems a bit aggressive, are you sure it isn't 0.75% difference in fees? 

If it is a difference in rate, I would work on the credit score and follow rates closely in case they start to climb.

If it is a difference in fees, I would say it is your call as to whether you should do this now or wait and try to raise your score.