New mortgage--help or hurt credit score?

[coachhenson]

I currently am owner-financing my house so the mortgage doesn't appear on my credit reports, but I am closing on a REFI today (hopefully) that will have it reporting.

Will it hurt me initially in terms of score?  One of the people dealing with the loan at Chase said my score will probably rocket adding a mortgage to my mix since I haven't had one reporting in a long time.

[Lel]

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@coachhenson wrote:

I currently am owner-financing my house so the mortgage doesn't appear on my credit reports, but I am closing on a REFI today (hopefully) that will have it reporting.

Will it hurt me initially in terms of score? One of the people dealing with the loan at Chase said my score will probably rocket adding a mortgage to my mix since I haven't had one reporting in a long time.

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I don't know if it will "rocket", but it should have a positive effect on your scores. My FICO score went up by about 10 points after I got my first mortgage.

[coachhenson]

Thanks.

Anyone else have any input on what a new mortgage has done for your scores?  I am sure initially it will make me take a small hit, but how quickly will I recover?  A guy at Chase swears that it is going to make my scores climb immediately.

[Anonymous]

Does it really matter what will happen to your score right away? If you just refied, presumably you won't be applying for any major credit any time soon.

[Anonymous]

My dhs scores went down about 6 points when the mortgage posted to his credit report,not too much of a change,

[tex]

Funny you should bring this up. My new mortgage just posted yesterday for the first time. My TU score did not change, Eqifax went up four points, but here's the kicker Experian dropped 103 points. No other changes except normal on time monthly payments. I will continue to monitor and hope to see a quick rebound. I don't plan on applying for any new credit any time soon.  

[Lel]

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@coachhenson wrote:

Thanks.

Anyone else have any input on what a new mortgage has done for your scores? I am sure initially it will make me take a small hit, but how quickly will I recover? A guy at Chase swears that it is going to make my scores climb immediately.

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Frankly, I wouldn't listen to what the Chase guys says, because there is really no way to predict how one's score is going to react to a new loan. Adding diversity to your credit mix is good, nevertheless. The amount that your score changes is going to be partially dependent on where your credit score is right now.

I've read that once a mortgage hits, there will be a temporary drop in scores, but once you've made the first payment then it will start to recover. That, like many of the observations posted on these forums, is based on anecdotal evidence.