Paid off one morgage, score unchanged

[Cakes2]

Can someone explain..If I paid off one of 2 morgages I had and saw no score impact on FICO and its been 6 months is that normal? Where would I go to get some answers? 

[MarineVietVet]

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@Cakes2 wrote:

Can someone explain..If I paid off one of 2 morgages I had and saw no score impact on FICO and its been 6 months is that normal? Where would I go to get some answers? 

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Hello there. Welcome to the forums.

It's not that unusual for a score to move very little, if at all, after an installment loan is paid off if other installment loans remain.

I would look at it a different way. You now have one less debt and that is a very good thing!

[jamie123]

I think you may be surprised by what I'm going to tell you. Usually when your last open installment loan is paid off your scores will drop. FICO likes you to have an open installment loan on your reports like student loans, mortgages and auto loans and your scores are higher when you have at least one of those open on your reports. If you expect your scores to rise when you pay off an installment loan you will be disappointed.

[Anonymous]

Interesting. My score took a serious dive after mortgage payoff. Purchased a different property and it rapidly increased again.

[MarineVietVet]

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@Anonymous wrote:
Interesting. My score took a serious dive after mortgage payoff. Purchased a different property and it rapidly increased again.

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It seems as if something in the FICO 08 formulas is more sensitive to no installment loans reporting.

I've been talking to a former mod here and when his final installment TL was paid and closed all three of his scores dropped by quite a bit.

But we agreed that being debt free always trumps any potential score decrease. I'd gladly trade lots of points to not owe anyone money.