I bought a home with a fixed rate for 3 years and then it becomes variable?
Answers:
Your payoff on the vehicle is excellent and will improve your score. Keep in mind that your unused, available credit can negatively affect your score. A paid-off credit card isn't as good as one with a small balance and regular payments shown. Make all your payments early or on time. Keep the value of your credit availability and outstanding debt at less than 30% of your income. Lastly, seasoned money in the bank is very important. Have a savings account that shows a balance at least 3-4 times your mortgage payment. Any large deposits into your savings within 90 days of your refinance will have to be accounted for (paper trail). Keep records of all your payments, including utility bills.
Two years is plenty of time to increase a credit score. I've seen people do it in 3 months.
Basically, pay all your payments on time every time. Make sure that you do not have anything listed with a collection agency like a returned check or any judgements. If you do, get those all paid as soon as possible.
Having nothing negative on your credit and paying your mortgage on time for 2 years should be all you need.
You want to keep your total debt payments under 30% of your monthly income also.
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