Home equity loan, a discussion.
Then reapply for a mortgage, and see how much better a deal you can get. Taking these actions will improve your credit rating and make you more attractive to mortgage lenders: * Pay down your existing debt. For a good credit score, you should be paying 40% or less of your total monthly income toward your debt. Debt payments include all your credit cards, any student loans you still have, your auto payment, and all mortgage loans you are paying. Lenders will also consider the amount of the loan you are requesting when they calculate your debt to income ratio, so also swap out your current mortgage and swap in your prospective mortgage (or add in your prospective mortgage, if you do not have a mortgage right now) and make certain the number is still 40% or less of your income.