Plan: in Oct 2016, ReFi my SL and possibly wife's as well (need to keep on IBR until that time). We have $40k/$160k @ 6.8%, so this refi alone will save us a lot in the long run.
Question: Should I start CC Churning knowing that it will hit my credit score when I'm planning on a ReFi within 2 years? I've read you should expect a 5-10 point hit per card for 6 months. My utilization is already under 5% (just the monthly balance between bill date and due date), so I'm not sure I'll get a boost from higher limits.
Current FICO Score: 790-800 each (based on Discover and CreditKarma, both fairly steady for 6+ months).
Reasons: We are organized enough to do churning without too much hassle and our normal monthly spending will cover most/all of the spending requirements without manufactured spending, so no concerns on the churning end. Plus, wife is looking to start travelling more, and I'm looking to offset the costs.
Concerns: When we refi, how much difference will a 750 vs 790 score actually be? Both are good scores, so maybe 0.25% difference if anything at all. Will the savings from churning offset the possibly higher interest on the refi SL? I'm assuming 4-5 years of focused payments before stuff is paid off (maybe even less time, but this is our current plan)
I'm honestly on the fence about this. I know there's a lot that goes into the math behind this (FV of vacation rewards vs FV of interest payments on the 0.25% difference vs FV of current rewards card...), but I'm just looking for a top level view to see if doing the math is worth it. Further, the wife isn't ok with low level/cheap hotels, the 'worst' she can 'deal with' is a Days Inn/Holiday Inn, but will more likely be Hilton/Sheraton level hotels - so I feel like the vacation rewards would be worth more than my current "2% on everything" cashback card; but again no math has been performed yet.
