topic Re: Paid Mortgage in Understanding FICO® Scoring

Paid Mortgage

Anonymous — Thu, 20 May 2010 00:56:47 GMT

Hi all,

Showed recent alert stating I did make my last mortgage payment. Paid off a little early but no change....any ideas?

	Previously reported	Newly reported
Balance:	$8,319	$0
Past due:	$0	$0
Status:	Pays account as agreed	Pays account as agreed
Last activity:	3/1/2010	3/1/2010
Description:	Real estate mortgage Second mortgage	Closed or Paid Account/Zero Balance Real estate mortgage

Re: Paid Mortgage

Lel — Thu, 20 May 2010 01:16:12 GMT

Congratulations on paying off your mortgage! I'm still about 20 years away from that goal.

Paying off an installment loan does not typically result in a significant FICO score change, if any. It's not like paying off a large credit card balance. So it's not really surprising that you didn't have any score change.

The paid and closed mortgage loan will remain on your credit report for the next 10 years as a positive factor, and will demonstrate a history of managing a diverse mix of credit types.

Re: Paid Mortgage

MarineVietVet — Thu, 20 May 2010 02:17:50 GMT

@Anonymous wrote:
Hi all,

Showed recent alert stating I did make my last mortgage payment. Paid off a little early but no change....any ideas?

Previously reported Newly reported
Balance: $8,319 $0
Past due: $0 $0
Status: Pays account as agreed Pays account as agreed
Last activity: 3/1/2010 3/1/2010
Description: Real estate mortgage
Second mortgage
Closed or Paid Account/Zero Balance
Real estate mortgage

This is the ONLY thing you should think about. What an accomplishment. I hope to be there in about 8 years (or less).

Congratulations!!!

Re: Paid Mortgage

Anonymous — Thu, 20 May 2010 15:07:08 GMT

Wow! Congrats on paying off your mortgage - that's always great news but it seems even cooler given the current mortgage situation in our nation.

If you're looking at ways to increase your FICO score, give us a little more info on what's currently on your reports and you'll get some great input.

And, once again, Woop-woop! Definitely party time. Hope you did some celebrations on that mortgage payoff.

Re: Paid Mortgage

happy0510 — Thu, 20 May 2010 16:06:48 GMT

Congrats Lefty,

You are a true inspiration!!

Happy

Re: Paid Mortgage

Anonymous — Thu, 20 May 2010 17:25:05 GMT

Congrats, Lefty! As Lel said, paying off this account won't necessarily change your scores, but it does give you some extra money each month to put towards revolving credit debt, if you have any. Paying your utilization down if you have any should give you a boost in your scores more than paying off this mortgage did.

Re: Paid Mortgage

Anonymous — Thu, 20 May 2010 19:00:16 GMT

I am very lucky, No bills other than utilities, still trying to get a few things off the CR but working diligently to get them taken care of. Thanks for all the responses.

Re: Paid Mortgage

Anonymous — Sat, 17 Jul 2010 22:33:04 GMT

is there ever a time when paying off a mortgage early could hurt my FICO score?

Re: Paid Mortgage

Lel — Sun, 18 Jul 2010 02:51:15 GMT

@Anonymous wrote:

is there ever a time when paying off a mortgage early could hurt my FICO score?

Probably not. Paying off the mortgage doesn't make it disappear from your credit reports - it will remain for at least 10 years, and assuming that it was an account in good standing, it will continue to have a positive effect on your score.