Will buying a 15000 car adversely effect my mortage interest rate if i refinance my house 175 000 house?

Demetra
Currently we are int the 4th year of a 5 year arm mortgage for a $175000 house ...we currently have only one car payment and we are contemplating another depending on the effect on the interest rate if we refinance our house next year.

Octavio
I would refinance first before getting a car. Then you have nothing to worry about.

Kelsie
Perhaps, aside from the obvious fact that each inquiry on your credit lowers your score the new lien will increase your Debt-to-Income as well. Feel free to E-mail me at Ryan.Pridgeon@mefc.com with any other questions you may have regarding this situation

Alberto
Your interest rate on a refinance will be determined by your credit score and the type of mortgage you get. Your credit score is determined by many factors including but not limited to new credit items, balance to loan amount, new inquiries, etc. Opening a new account now will certainly lower your score by some amount but your score would most likely recover by next year. However there are no guarantees when it comes to calculating your FICO score. Good Luck

Alise
Great idea of converting that arm loan. I have seen a lot of people doing that after the arm interest rate adjusts and their new rates are awful!!! Make sure to shop around for the best rate and that depends on your credit situation. If you want to purchase a new vehicle beforehand, your credit bureau is going to get a hit and lower your score a little. However if your debt ratio is low after your new payment it shouldn't effect your refinance. In all honesty though, refinance now if you can or keep a close eye out there on what the interest rates are doing so you can get a new fixed loan at a good rate. One last thing. When you refinance and the lender asks about points to buy down your interest rate, really think about it. The thousands of dollars in points might not be such a big savings.