Drop???

[Anonymous]

I paid down debt $3100 and dropped UTi from 50% to 26% and My mortgage scores dropped 8 points. **bleep**?

[Anonymous]

I’m sorry to hear that. I would triple check again to make sure that nothing else happened, because mortgage scores are very sensitive to utilization and generally respond well to one lowering their utilization. My mortgage scores were positively impacted from dropping my utilization. Hopefully, someone else could provide better insight as to why that might have happened.

[Moneyklutz]

The underlying magic-sauce of FICO scoring never ceases to amaze me...

Try closing your eyes and clicking your heels three times and saying "There's no place like mortgage scores.."

Teasing aside, the good thing to remember is that it'll be different (better?) next month for reasons somewhat explainable if you pay your bills down and on time and don't open any new credit. (unless it's an installment loan that you already don't have and the moon is in the seventh period of Venus while you're standing on your toes closing one eye and chanting ommommomm...) 

btw... love your username, makes me want to get back into worts, hops, sugars and temps. Maybe you should label the next batch FICOfrustrations so at least you can console the fun over a cold one.      

[Anonymous]

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@Anonymous wrote:

I paid down debt $3100 and dropped UTi from 50% to 26% and My mortgage scores dropped 8 points. **bleep**?

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I am guessing that the tool that you are using to pull your mortgage scores is myFICO Ultimate.  In that case, 90 days passed between your mortgage scores being pulled.  Without a doubt, something else changed on your report during that time to cause your scores to drop; lowering your CC utilization could not have done it.  As long as at least one card is reporting a positive balance, then lowering one's utilization can never hurt your score.

I also note that you write that your mortgage scores (plural) dropped 8 points.  Do you mean that all three mortgage scores dropped 8 points?  That's possible, but it's a bit unusual for all three to change the exact same amount.

[Anonymous]

Any new credit card accounts showing?  I believe mortgage FICOs are very sensitive to new accounts, inquiries, etc.

[Anonymous]

So sorry for the delayed reply. Thank you all for your insight.

Monkey, I will certainly name a beer after this process. FICOFrustrations, SOURScore or MALTYMortgage. HA! Thanks

Dixie... I averaged the #8. The dropps were EQ -10, TU -1, EX -1.

ABCD... At the request of my Loan Officer, I had a HP for a new CC to lower my utilization. Got approved for $3k.

Heres my dilemma... if I dropped my UTI to gain a 20 point increase (according to simulator which has been accurate in the past), would the HP drop me 30, 21 and 21 respectively?

Also, the final HP  to lock in rate will be Jan 10th ish. Is 2 months enough for that HP to have less of an effect?

Thanks! and CHEERS!

-Brew

[Anonymous]

Did your new CC report already? Or just the inquiry?

[Anonymous]

just the inquiry

[fltireguy]

Just noticed- you are 34% util on your CashRewards card.. that’s probably hurting you- even paying it down to 2900 would be a big help

[Moneyklutz]

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@Anonymous wrote:

So sorry for the delayed reply. Thank you all for your insight.

Monkey, I will certainly name a beer after this process. FICOFrustrations, SOURScore or MALTYMortgage. HA! Thanks

Thanks! and CHEERS!

-Brew

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Monkey?  *scratches his armpit while looking at the ceiling*  who-da thunk my life would ever sink to this level...  

Bring on the beer my friend, names are only an excuse to brew more!