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Impact of multiple mortgage loans on my report

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TheDude
Valued Member

Impact of multiple mortgage loans on my report

I realize this is only transitiory, and my credit report should eventually get updated in the next month or two, but I'm wondering how having mutliple mortgages on my credit report might be impacting my score.  It seems to have dropped recently, and I am wondering if having 3 mortgages versus 1 mortgage is having an impact.  I recently moved, and I financed a new home, and sold my old home.  The lender immediately sold my mortgage to another institution, so I am noticing on my credit report two entries for the new home, and one entry for the old home which has been paid off.  From looking at the report, it appears I have  $750,000 in mortgage debt, when in reality I only have about $300,000 in mortgage debt.  Would this be hurting my FICO score, even if all of the loans are showing up as paid on time?

Message 1 of 5
4 REPLIES 4
Revelate
Moderator Emeritus

Re: Impact of multiple mortgage loans on my report


@TheDude wrote:

I realize this is only transitiory, and my credit report should eventually get updated in the next month or two, but I'm wondering how having mutliple mortgages on my credit report might be impacting my score.  It seems to have dropped recently, and I am wondering if having 3 mortgages versus 1 mortgage is having an impact.  I recently moved, and I financed a new home, and sold my old home.  The lender immediately sold my mortgage to another institution, so I am noticing on my credit report two entries for the new home, and one entry for the old home which has been paid off.  From looking at the report, it appears I have  $750,000 in mortgage debt, when in reality I only have about $300,000 in mortgage debt.  Would this be hurting my FICO score, even if all of the loans are showing up as paid on time?


Nope; FICO doesn't appear to have a metric for aggregate debt for even for revolving let alone installment debt; because income isn't reported to the bureaus and therefore not calculated for FICO, that's handled elsewhere in the UW process rather than in the algorithm.

 

Most likely it was the mortgage inquiries coming out of grace period (assuming 30 day closing) and the opening of a second new tradeline which is a bit unfortunate AAOA wise in the short term.  A bit surprised they were able to dump your loan that quickly, usually buyers on the secondary market want to see some seasoning... out of curiosity who sold and who picked up your loan?




        
Message 2 of 5
TheDude
Valued Member

Re: Impact of multiple mortgage loans on my report

Hombridge Financial sold it to Cenlar.

Message 3 of 5
andydallas1
Established Member

Re: Impact of multiple mortgage loans on my report

I have four mortgages (rental property), no problem at all.  The only issue is you have to make sure when someone look at DTI they realize the mortgages are already figured into your debt (some credit cards want you to show what a property rents for, and what the mortgage is, when the mortgage is already on your credit report.     People ask why I don't use commercial loans, a 'conforming mortgage' even on a rental property, is a lower interest, longer term loan than a commercial loan (but they interest rate is slightly higher than your personal home.

Message 4 of 5
TheDude
Valued Member

Re: Impact of multiple mortgage loans on my report

This just in.  I received updates today that both of the extra mortgage accounts now have a zero balance, and my FICO score dropped 30 points.  I remember my score dropping when I paid off my auto loan, but didn't expect a drop like this.  It seems wrong to punish your score when a debt gets paid off.  Anyone know how long this will impact my score--I still have mortgage debt, so my credit mix should be good.

Message 5 of 5
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