Comments on: How Does a Home Loan Modification affect your credit score?

By: Andrea

Andrea — Tue, 22 Dec 2009 15:28:59 +0000

It won’t hurt your credit score because you are not actually borrowing any money, you are just refinancing. In some cases it may actually help you credit score. Example your first loan was for 200K, you’ve paid off 50K, your new loan will be for 150K, that means your loan amount is smaller, and better for your credit. Also it will show on yor credit score that you paid off a loan. I just refinanced with a no closing cost loan( you pay a higher APR, but you will not pay any closing cost. ) I am paying 6 1/4, it’s probably even lower now. The fed is supposed to lower it again, so I would wait a month or so to see what happens,
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I’ll star your Q so Beverly will see it, she’s a loan agent

By: J J

J J — Tue, 22 Dec 2009 14:40:59 +0000

It never looks good to have a lot of outstanding debt on facilities, especially new ones, and for high amounts.

Going over a credit bureau and seeing a recently opened 50K Loan (most renovation budgets are around that area) opened 2 months ago that clients have just started paying down … is just one extra obligation.

Now if everything else is in line like your debt servicing ratio – so you can afford it – then it really doesn’t matter. Even better with good repay history.
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By: michael hacker

michael hacker — Tue, 22 Dec 2009 14:33:59 +0000

depends on who your getting it with it could bring your credit score down.
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