@Anonymous wrote:
Generally speaking, if I refinance my home from a 30 year loan to a 20 year loan, will that increase my creit score? The interest rate will be 2 points lower and the savings on the interest payments is significant.
Interest rates on loans do not affect credit scores. In fact, when you refinance, because you're going to have a new account reporting, a lower average account age, and a new inquiry, your score may go down a bit. But with time your score will recover.
The bigger issue is that you stand to save gobs of money on interest, and in my opinion that's what matters above all. We strive for higher FICO scores in order to snag those great interest rates.
