My 2 years is in March but credit score is only 676

[dustinc]

My middle credit score is 676. My two years is coming up next month. Is 676 going to be good enough to get a good rate? I really need below 5%.

[AngelinaCat]

I can't say about a mortgage, but in January, 'Hub and I went to Dayton, Ohio, for a short trip. While there, we visited our CU which is headquartered there to handle some business. After that was done, our Service Representative asked us if we would like her to run our credit reports. We had not run any since we filed BK, which was Dec. 2007. The report came back with a 662 for me, and a 670 for 'Hub, which our Service Rep said was a "B+". She went on to say that if we should need to take out a loan for a car--our family car is now starting to age--contact her, and she would make sure we got it.

I hope that helps.

[dustinc]

I can't say about a mortgage, but in January, 'Hub and I went to Dayton, Ohio, for a short trip. While there, we visited our CU which is headquartered there to handle some business. After that was done, our Service Representative asked us if we would like her to run our credit reports. We had not run any since we filed BK, which was Dec. 2007. The report came back with a 662 for me, and a 670 for 'Hub, which our Service Rep said was a "B+". She went on to say that if we should need to take out a loan for a car--our family car is now starting to age--contact her, and she would make sure we got it.

I hope that helps.

Thanks for your response, but auto loans and mortgages are substantially different as I'm sure you are aware.

[AngelinaCat]

Thanks for your response, but auto loans and mortgages are substantially different as I'm sure you are aware.

Very much so. I just put this out for general informational purposes.

[tobee43]

dustic, as AC has stated and i think the point is, try a credit union if you can. most will work with you more readily than any "regular" large bank.

one of the first accounts we opened after our bk or actually just before we filed was at a credit union, just for that reason. they gave mortgage and car loans as well as 2nds.

i think with that score you will fairly hard pressed to find a loan below 5% at this point. i know my son is refinancing and has a credit score of 820 and is getting 3.89% with 2 points! not great, but look at his score, rather depressing for all of us.

[dustinc]

dustic, as AC has stated and i think the point is, try a credit union if you can. most will work with you more readily than any "regular" large bank.

one of the first accounts we opened after our bk or actually just before we filed was at a credit union, just for that reason. they gave mortgage and car loans as well as 2nds.

i think with that score you will fairly hard pressed to find a loan below 5% at this point. i know my son is refinancing and has a credit score of 820 and is getting 3.89% with 2 points! not great, but look at his score, rather depressing for all of us.

Does that mean that without the points your son would be getting 5.89%?

[tobee43]

Does that mean that without the points your son would be getting 5.89%?

yes, i think that would be about correct and that's with his high credit score. however, all the banks are now charging points and fees because of all the regulation changes, the banks want to make more money some how and i guess that's one of the ways they are doing it.

[panda]

We received a 4.58% from our new credit union in August 2011 for our car. Cap one auto offered around 5.85 or something like that. Our credit scores are similar to yours, fico 655 and experian-according to Cap one was 686. So always ask. The local dealerships were offering us around 18%. We also received cash back from the credit union for going through them directly, this was about 1% of our loan, which was an added bonus. I just know that the banks are not offering anything close to what our credit union has, and I know the credit union wants our business and does not make us feel like dirt because of the bankruptcy, which was really an added benefit. The credit union also offered us a decent credit card rate after three months of payments on the car, but we have not picked up that offer just yet.

[Logan]

I just received a quote yesterday since I'm considering putting an offer on a house. FHA is at 3.75% at no points. Closing costs are at 1 1/2%.

Logan

[panda]

That is just outstanding Logan. Let us know if you make it through on those terms, I am not ready to buy a home any time soon, but it is really interesting to me to see some of these good offers coming through for those of us who suffered through the huge losses of the last few years.

I really thought we were going to be doomed to never having anything again once we had the bankruptcy, but I am learning there are places who do want our business.

[dustinc]

I just received a quote yesterday since I'm considering putting an offer on a house. FHA is at 3.75% at no points. Closing costs are at 1 1/2%.

Logan

Hi Logan, may I ask what your credit score is?

[Logan]

My mid score is 718. You need a 680 most likely but you need to talk with a loan officer.

[2manybills]

I contacted our 1st mortgage holder and asked about a "streamline" or refi through FHA. He said that we would qualify, which would take our interest rate from 5.75 to 3.68. But, we will have to have PMI for the first 5 years of the loan at 1.18, which adds about $300 to the payment. The decreased interest rate would reduce our payment by $600, net $300.00 after PMI. I guess it would be a good thing since we will be fixed for 30 years at 3.68. We are 2 years post discharge. I figure this would be a good way to get our mortgage holder to start reporting to the credit bureaus again.

[Logan]

I contacted our 1st mortgage holder and asked about a "streamline" or refi through FHA. He said that we would qualify, which would take our interest rate from 5.75 to 3.68. But, we will have to have PMI for the first 5 years of the loan at 1.18, which adds about $300 to the payment. The decreased interest rate would reduce our payment by $600, net $300.00 after PMI. I guess it would be a good thing since we will be fixed for 30 years at 3.68. We are 2 years post discharge. I figure this would be a good way to get our mortgage holder to start reporting to the credit bureaus again.

Prior to the collapse if you wanted a loan greater than 80% you generally got an 80% 1st and then the rest on a 2nd. The 1st mortgage would be at a slightly higher rate than if you put 20% down and then the 2nd would be a couple of percentage points higher depending on many factors. If you took the mortgage payment of 100% financing with an 80-20 loan versus 100% loan with PMI the payments generally were not to different but as you pointed out the PMI drops off in 5 years.

Logan