How much will Paying off a mortgage increase my credit score

[blue_moon]

I had two mortgages in my name, my own mortgage and a mortgage I co-signed with my son which had a $47,00 balance.  My son finally refinanced the mortgage I co-signed for him to get and the account in my name has been paid off and is now in his name only.  Can anyone tell me how much this might increase my credit score?

[Anonymous]

It may also decrease your score. I read strange things about this issue in the forum.

[Lel]

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@blue_moon wrote:
I had two mortgages in my name, my own mortgage and a mortgage I co-signed with my son which had a $47,00 balance.  My son finally refinanced the mortgage I co-signed for him to get and the account in my name has been paid off and is now in his name only.  Can anyone tell me how much this might increase my credit score?

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It may not affect your score at all.  It will persist on your credit report for several years as an account in good standing (I'm assuming that there were no lates on the account) and will have a positive impact on your overall score.

In your case, you're not looking at a hypothetical scenario - the refi is done and now you're waiting for the results.  Please report back with your personal experience.  However, since there are many other factors that affect the score, it might be hard to ensure that only one variable has changed.

For the record, I recently refinanced one mortgage with a HELOC.  So one account was paid off and a brand new account was opened in its place.  My score decreased by 1 point, and then went back up by 1 point a week later. 

[haulingthescoreup]

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blue_moon wrote:

I had two mortgages in my name, my own mortgage and a mortgage I co-signed with my son which had a $47,00 balance.  My son finally refinanced the mortgage I co-signed for him to get and the account in my name has been paid off and is now in his name only.  Can anyone tell me how much this might increase my credit score?

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My guess is that it will change very little, if at all.

• You still have a mortgage in your own name, your own mortgage, correct? If so, then you still have the little check mark for having a mortgage.
• Although the scoring formula makes note of installment debt, the util on it has very little effect on scores, with the exceptions of the very first month when it posts at 100%, and then again when it gets very, very low.

Any lenders will probably be happy, though, as you now have one fewer obligation in your name.

[Fancyron]

I sold my home Aug 30. Both my mortgages show a zero balance with all three agencies by Sept 10th.  I havent seen an impact to my score yet.