04-01-2009 09:31 AM - edited 04-01-2009 10:46 AM
Just did a re-fi. Wells Fargo was paid off 3-25.
First pyt on new mtg isnt due until May 1st, so won't report til probably June at the earliest, or if like WF, could be July or so before it shows up.
I have revolving credit (store and major) and an auto loan, but this 'gap' between WF reporting as paid and the new one not reporting yet will leave me with no active mortgage acct.
I'm wondering how this will affect my score....how many points will I lose?!
And when the new one reports, I assume I'll lose points there as well because it's new.
I'm anticipating sort of a double hit to my scores...though I wish someone could tell me I'm wrong!!
Hope someone can chime in and give me an idea of what to expect.
04-02-2009 05:26 AM
You will incur a new inquiry and new account. The new account will lower your average age of accounts.
You will also increase the balance to original balance ratio of your current debt. Meaning that if your original current loan was $25k and you have paid it down to $20k, you have paid it down 20% or have 80% of original loan balance.
When you refi, you have a new account with new original balance equal to the payoff of previous loan. Thus, your balance will be 100% of original balance and then slowly decline as you make payments.
04-02-2009 07:36 AM - edited 04-02-2009 07:45 AM
Thanks for replying,tx!
The inqs for the re-fi have already been reported and Score Watch alerted me and advised my score did not change as a result of the inqs.(Whew....wipes brow).
I've read on the forum of people getting dinged when their mortgage was paid off, so that's what I'm curious about. Most likely Wells Fargo will report the mortgage as paid off before the new one reports, so I'll have a period of time with no mortgage reporting. Trying to prepare myself for getting hit twice.....for the paid off mortgage and then for a new mortgage
1) How many points should I expect to lose when Wells Fargo reports the mortgage as paid off
2) How many points might I lose when the new one reports? Or will my score possibly be 'helped' by having a mortgage report again??
When Wells Fargo first reported (new mtg 10-07) I lost 10 points. I realize reports are 'in flux' and everything is relative, as in age of accounts and account balances, utilization etc.
Just trying to get some idea of what I should expect. I have 2 store cards and 4 credit cards turning 1 year old on this month (April), so I hope to gain some points from that. Guess I'm hoping that the gain from these accts aging might offset the lossof the paid off mtg and the new one.
I know a lot of forum members have been re-financing, so just trying to get an idea of "score effects".
04-03-2009 09:29 AM
Probably will have little/no effect. Interestingly, I closed on a home 12/05, and it still hsan't shown up on my FICO notices - totday is 04/03.
But, I used a dormant credit card and closed my old HELOC when I sold my old house and received a 22 point deduction. Nice!
04-03-2009 09:09 PM
I refinanced a 2nd mortgage last spring, and my score dropped just 7 points when it was reported, which was about a month after the new account was opened. The inquiries did not have any effect, probably because the lenders that I worked with pulled scores from Experian, not Equifax.
I got those 7 points and more back within 6 months.
04-07-2009 07:34 AM
Encouraging! I hope I won't lose much.
As expected, the mortgage has evidently already been sold to another bank...not the one shown on my closing documents.
How do I know this? Citimtg put HARD inqs on all CRAs for both DH and I and Citi is not the mortgagee at closing. The inqs showed up 4/2 and 4/6. We closed on 3-19, so obviously we didnt authorize hard inqs for after that date!!
Maybe should make this separate thread, but wouldnt these inqs be disputable?! Scorewatch sent an alert but EQ score didnt change, but still it's another inq on each CRA. And we both already had 2 inqs for this re-fi between 1/19 and 3/19 when we closed, which I think for FICO scoring should count as 1.
I just hate having something on my reports that is not correct, and since we didnt authorize these inqs, I'm hoping they can be deleted!
Any thoughts or advice??
04-10-2009 10:31 AM
A quick update.
Just ran CreditSecure report and EX shows original mortgage as paid and closed and my FAKO EX is down 10 points as a result.
Not showing up on EQ and TU yet.
Guess I'll lose some more when CitiMtg reports as a new acct, but hopefully I'll regain lost points within several months.