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Mortgage Loan ....

New Visitor

Mortgage Loan ....

I recently went thru a divorce. My ex refinanced the house and got it out of my name. It was around $130,000. How much will my FICO Score go up?
Message 1 of 5
4 REPLIES
Moderator Emeritus

Re: Mortgage Loan ....

Probably not too much. Installment loans play only a small part in scoring and that's a good thing, otherwise we'd take some large score hits when adding a $100k or $500k mortgage. If I had to guess maybe a single-digit change. Now if there was a 2nd mortgage attached to that which could be scored as a HELOC then my answer might be different.

Message 2 of 5
Valued Contributor

Re: Mortgage Loan ....

It may actually go down.  You losing the mortage account and the installment account.  If you don't have any other installment accounts you'll lose some of your credit mix points.  Regardless it'll be a single digit change either way.

Message 3 of 5
Community Leader
Epic Contributor

Re: Mortgage Loan ....

Regardless of current scoring impact, I would still consider it a real bonus.

 

It removes you from any possible reporting of derogs should the account later go astray.

Additionally, providing the creditor does not choose to delete the entire account on their own initiative, it will still be included in your AAoA, and upon a manual review, will still proivde a showing of a prior mortgage loan that was positively concluded.

Message 4 of 5
Super Contributor

Re: Mortgage Loan ....

Moving to understanding FICO® scoring.
March2010 FICO® ~ 695 TU, 653 EQ, 697 EX
Message 5 of 5