score effect of re mortgaging

[Anonymous]

I had mortgage with Chase at 5.25% with $1300 payment of which has 7.5 years left....They came to me and offered to reduce rate to 4.25 at no cost and reduce payment to 650. I can still make principal payments so i did it. Do you think this will have any effect on my score as they take off the larger mortgage and put on the smaller one? Thanks for everyone's help

[MarineVietVet]

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@Anonymous wrote:
I had mortgage with Chase at 5.25% with $1300 payment of which has 7.5 years left....They came to me and offered to reduce rate to 4.25 at no cost and reduce payment to 650. I can still make principal payments so i did it. Do you think this will have any effect on my score as they take off the larger mortgage and put on the smaller one? Thanks for everyone's help

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I'm in the process of doing the same thing with Chase. In fact I'm supposed to sign the papers today.

In my case there was no credit pull so no effect on my score. It will be the same for you if there was no credit report pull. Also having a lower balance will have a negligible impact on your score IMO.

From a BK years ago to:
EX - 3/11 pulled by lender- 835, EQ - 2/11-816, TU - 2/11-782

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

[Anonymous]

They did not do a credit pull on mine either. After I first posted this am I got an alert that my score dropped from 760 to 745. I pulled the alert and it is from Chase and notes the revised mortgage. All the comments are good ...like it is telling me why my score probably went up, except it went down. Interesting.. BTW my son is a Marine on leave until next Tuesday. He has been deployed in Japan for 15 months and has 9 more to go.

[MarineVietVet]

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@Anonymous wrote:
They did not do a credit pull on mine either. After I first posted this am I got an alert that my score dropped from 760 to 745. I pulled the alert and it is from Chase and notes the revised mortgage. All the comments are good ...like it is telling me why my score probably went up, except it went down. Interesting.. BTW my son is a Marine on leave until next Tuesday. He has been deployed in Japan for 15 months and has 9 more to go.

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It sounds like my opinion about how this might affect you didn't mean all that much huh? 

Anyway I did a 10 year refi and went from 4.125% to 3.75%. Usually that would not be enough of a drop to matter much but because of the amount financed the payments will go down about $250 a month. Plus there was no appraisal and no closing costs so for me it was a good deal.

More importantly tell your son I appreciate his service in keeping all of us safe.

From a BK years ago to:
EX - 3/11 pulled by lender- 835, EQ - 2/11-816, TU - 2/11-782

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

[Anonymous]

It was a good deal for me as well. I have debt problems but have them behind me now. I did not have or use a credit card for 4 years until I got a secured one a year ago. Then within the past three months, I made it unsecured, got approved for a card thru USA A and got a car loan. I suspect the drop is because of the recent credit I have secured rather than the mortgage. Either way its not a big deal as it is money in our pockets...right? And thanks for everything you did for us during your service. We appreciate it now more than ever.