Sold home need assitance

[Anonymous]

I just sold my home, we are renting untilk we find next house to buy, Removing the mortgage from our credit report how much will that effect our credit score? Removing $149,000 $1100 month payment,  will it help or hurt score?

[Revelate]

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@Anonymous wrote:

I just sold my home, we are renting untilk we find next house to buy, Removing the mortgage from our credit report how much will that effect our credit score? Removing $149,000 $1100 month payment,  will it help or hurt score?

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Doesn't really.  FICO doesn't know about income (that's not tracked on credit report anyway) and such the concept of DTI doesn't factor at all into the score, does factor into the lending decision though.

Depending what else is in your file and what the mortage was reporting previously may determine if you gain or lose a handful of points, but so far from some very, very limited testing, only one score (EX) out of the trifecta really seems to change much on such things.  EQ / TU portions will probably be flat.

[Anonymous]

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@Anonymous wrote:

I just sold my home, we are renting untilk we find next house to buy, Removing the mortgage from our credit report how much will that effect our credit score? Removing $149,000 $1100 month payment,  will it help or hurt score?

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Paying off your mortgage does not actually remove the mortgage from your credit report. The status will change to Closed, 0 Balance, but the mortgage history (good or bad) will remain on your credit report. I sold my last house in 2011 and if I recall correctly, I lost about 10-15 points when the status changed to Closed, 0 Balance. How many other TLs you have reporting makes a difference as well. If you have other installment loans, student loans, credit cards, etc reporting, I don't think your score will change drastically.

[frugalQ]

when we refi'd our 1st home back in October 2012, I also lost about 10-15 points during the time period when the original loan reported as closed but the new loan had not started reporting. I still had SL and car loan reporting as installments.