Paying them off won’t have an immediate bump in your scores, in fact they could actually dip a little, since you’ve made the “date of last activity” more recent.
What you need to do now is dispute all the collections, and try to get them deleted or removed. There is bound to be some inaccuracy you can argue about, or just say it’s not yours. If the collection is paid, most collectors won’t bother responding to the dispute. And it goes away.
I have to disagree with those who say it won’t raise your score. It might not raise it fast, but…
I have made my way out of debt and had to pay some collection agencies. In one three-month period, my score (through equifax) jumped up 30 points. All that I had done recently was make timely payments to one agency and pay off another.
Over the period of a year, it increased about 60 points, with me making regular, timely payments.
It won’t increase your score. The only things that do are 1) paying your bills on time and 2) reducing your overall debt.
Once accounts go into collections, the damage is done and paying those off will not raise your score. Sorry.
Lock it in. Remember since you have a fixed rate, you can pay extra each month which would cut down on the interest. On the first 15 year on a 30 year mortgage, you pay about 70%. That’s how most banks make their money.
From what I have read and heard from people in the banking industry, interest rates are not expected to change in the next 60 days. So, I would just spare yourself the anxiety and lock it in now. 5.6% is a good rate.
Since that rate is quite a bit more than I locked for in April, I’d say grab it. Make sure you know if there are fees to lock a rate for longer than 30 days though, or if it’s like my rate, that because they’re taking so long to process, they just keep renewing my rate at no cost to me.