Will refinancing affect FICO score before purchasing second home?

 Hello all,


Hopefully some of you experts can answer my questions.

I am planning to rent out my first house (which I have lots of equity)
and purchase a second home.

My questions are:

1) If I refinance my first home mortgage at a lower interest rate and
lower payments, how will that affect my FICO score since I am applying
for a new home loan for the second house? Will the FICO score be
better since the monthly payments are lower? Or should I refinance
later after getting the new home loan.


2) What are your opinions on refinancing the first house with a higher
amount to use part of it as a downpayment on the second home?

Thanks in advance,
Ray

  On 4 Jul 2004 09:11:08 -0700, rayw707@mail.com (RayW) wrote:


I don't think you'll get a lower rate on something you're renting.
Check the mortgage carefully, some don't allow it and you need to make
it clear what you're trying to do upfront.  Unless you just love
people enough to want to rent, why not sell your furst house and get
your butt out of the debt?

Probably will get you  an even higher mortgage rate on the first
house.