mortgage balance

[Anonymous]

I have an interest only mortgage, so the principal balance has not changed.  If I voluntarily pay down the balance will it improve my FICO score?  If so, by how much should I pay down the mortgage to have the greatest impact?

[Lel]

Balances on installment loans such as mortgages have only minimal impact on your FICO score.  Paying down your principal balance may not have any discernible effect on your score.

This is a regular mortgage, not a HELOC, correct? 

[Anonymous]

Thanks.  I'm not sure what a HELOC is.  My mortgage was for 7 years with the interest rate fixed.  I also have a car loan which I paid down early by about 30%.  Would an additional paydown help my score?

[Lel]

HELOC is a home equity line of credit, which is sometimes treated as revolving debt and is scored like credit card debt.

Your auto loan is also an installment loan, so like the mortgage the balance is not going to have a tremendous impact on your scores.

If you have any credit card debt, that is where you should be focusing your efforts.