Refinance Reality check.

I purchased my home February 1st this year, 15 year FHA loan w/ 10% down, 340k loan @ 4%, 26% DTI. 608 credit score at approval.

Home has appreciated from 370k to 405k and I'd like to refinance with 20% ltv to drop PMI, mortgage rates have not risen since I bought, actually slightly lower today, but I know this will not last until My credit score improves significantly, I have cc defaults that will drop off in mid-early 2020, at which point I'll have perfect credit… But for now it doesn't seem my credit score is improving at all, not with 3 credit lines, auto installment, and home loan with 100% on time payments, it's just not moving, the old def. credit lines continue to report monthly .

My original loan required $12,000 in upfront points just to get approved for the loan. I would like to refinance now but it would not be worth it unless I can get it at a comparable rate without the egregious upfront points. I've saved an additional $30,000 in savings this year and paid everything on time, zero credit card debt, only 6,000$ auto loan, no other debt.

Is it realistic that I might get a conventional refinance at 608 credit score? Is there any way I can leverage some savings to improve my credit score? Like paying off a majority of my auto loan, or opening a secured credit line to modify my revolving utilized debt ratio? ( the old defaulted credit cards, though written off and past sol , make my revolving debt ratio like 70-80%, which really hammers my credit score, in my open and 100% on-time 3 credit lines, all about 3 years old, I only have 1-3 percent utilization )

Any advice is greatly appreciated.

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