Hi, everyone! I am back after a long time. I initially jlined MyFico when I was trying to obtain a mortgage loan and y’all were great!
My stats: Currently at 4.75. Have been in FHA loan for 6.5 years. My home value has gone up, though I am not sure enough to be rid of PMI. Most sources suggest that this is the case, though. I borrowed $ 350k, owe $ 320k, and the recent comps are all ranging from $ 390s to over $ 450s.
I am the sole borrower on the loan currently. My husband’s credit and student loan issues would probably be a detriment, though his income would benefit me as a borrower.
I am concerned that my DTI, though manageable, is going to be an issue. I am assuming they take everyhting, including the mortgage, into consideration. I would actually LOWER my DTI if I refi’ed- does that get taken into account? I have two car leases and some outstanding loans, though my record is very clean and everything can be explained. My income was higher when I qualified before. I have also always been on time and often ahead with my Sun Trust Mortgage. My EQ score is a 756 and TU is 762.
I guess my big question is- it will go by DTI and not my past relationship, correct? Meaning, even if Suntrust sees that I ahve always paid on time, often getting a month ahead, the DTI might still kill it?
I am looking to get into a conventional and eliminate PMI. We figure that we can either go to a shorter term loan or lower our payment a couple of hundred dollars a month which would benefit us.
Should I try to refi with Suntrust first or seek other options?
Hoping someone can answer my questions and help me decide whether I should bite the bullet or store the gun on this.