Thinking of refinancing my Henrico home. Is it worth it with a 660 credit score?
I bought my townhome near Short Pump back in 2023 when rates were sky high. My current mortgage is at 7.5 percent and it is killing me every month. I have a 660 credit score now, which is better than when I bought, and I have about 20k in equity based on recent sales in my neighborhood.
I am wondering if refinancing makes sense for someone with my numbers. I do not have a ton of cash to bring to closing, but I really need to lower my payment. My job is stable and I have not missed a single payment in two years.
Has anyone in Henrico refinanced recently with a credit score in the 600s? Which lenders or brokers actually gave you a fair deal? How much did closing costs run you?
Also, I keep hearing that some lenders use old credit models that do not reflect my on time payment history very well. I read an article about something called VantageScore 4.0 that looks at your payment trends over 24 months instead of just a frozen snapshot. That sounds like it would help someone like me who has been consistent lately but has some older dings.
How do I find a lender who actually uses that newer model? And is there a way to get a real quote without them pulling my credit hard and possibly dropping my score further?
I am ready to make a move but I do not want to get ripped off or waste my time. Any local advice would be a huge help, thanks!