Home Refinance Question

Potentially a strange question for this forum, but I find most people on here to be pretty damn intelligent, so what the heck. :stuck_out_tongue:

I have a home refinance question that I would love to get advice on. My wife and I currently have a 30 year fixed loan @ 5.25% from a 2007 home purchase when that rate was considered very good :smiley:

At that time, my wife had a credit score in the high 680/low 690 range and I was around 760. Since that time, my wife went through a bit of a credit crisis with some of her personal credit cards and… to be frank - hid it from me - so I was unable to assist or control the issue. Needless to say, this all came bubbling to the surface when I started down the refinance path with these historic low rates well under 4%. I have started the repair process for her credit and have been able to get her score up from 550 to just over 600 in the past 3-4 months and my rate is now at 791.

Given that our home loan is over $450,000, that 1.25-1.75% will have an large impact and rates are starting to creep back up. I am scared I will miss the window, but believe (know) her current score will severely impact (kill) our chances at a sub 4% rate.

So my questions are;

Given that there is no way her credit is getting to 700+ anytime soon, what should I get my wife’s credit score to before I even try to secure a refinance?

What rates can I expect with a 791 and 600 score? Are we lucky to just have 5.25% now?

I have heard 620 is the first “magic” number, but will a joint refinance with a 791 and a 620 net a decent rate?

What score would she need to hit to get a prime rate when coupled with my 791?

Any feedback is greatly appreciated.

Do you need her income to qualify for the mortgage? If not, then I would guess her credit rating won’t matter much, if at all. In fact you can leave her off the mortgage altogether (though she would have to sign off anyway, if she has equity in the house).

You should be able to get a very quick answer to this, by consulting any lender or broker.