One of the most watched in FICO Mortgage is aggregate util on all accounts. Lower the aggegate %. The better you'd be. Also no credit seeking. Longer the better since most recent opening of a new account. No outstanding debts as in baddies. Everything has to be paid. And of course as with any new credit your seeking. Good ole AZEO.
@folks19 wrote:
@FireMedic1 wrote:One of the most watched in FICO Mortgage is debt to income. Lower the DTI %. The better you'd be. Also no credit seeking. Longer the better since most recent opening of a new account. No outstanding debts as in baddies. Everything has to be paid. And of course as with any new credit your seeking. Good ole AZEO.
@FireMedic1 DTI is not a factor making up the FICO score. DTI may be a factor the lender uses in making a decision, but it's not calculated in a credit score.
re-worded.
@folks19 wrote:How are our mortgage scores claculated? What can one do to raise their mortgage scores?
My EX2 score (listed as mortgage score in the Experian app) is around 45 points lower than my regular FICO 8 score, but I also recall that score being over 20 points higher a year and a half ago.
What are the main diferences between how the mortgage score and 8 score is calculated calculated?
(I'm not asking about my own profile, but just in general)
Based on my experience, I believe that the primary differences between the mortage scores and the FICO 8 scores are as follows:
1. The "age" factors, such as inquiries, new accounts, average age of accounts... are weighed more heavily in the mortgage scores.
2. The mortgage scores are more concerned with number of zero account balances; the more the better, except that one bank card should report a balance each month.
3. The mortgage scores penalize more heavily for very high utilization individual accounts.
4. The FICO 8 scores penalize more heavily for high aggregate utilization.
5. Very low installment utilization (9% or lower aggregate) is rewarded in FICO 8, usually ignored or given little effect in mortgage scores.
Very good information @SouthJamaica , thank you for the summary. I was concerned paying off one of my installment loans would cause me to suffer a fico 5/4/2 penalty for aggregate installment utilization, this means i can pay off one of my vehicles sooner without a potential mortgage hit. nice.
@SG43 wrote:Very good information @SouthJamaica , thank you for the summary. I was concerned paying off one of my installment loans would cause me to suffer a fico 5/4/2 penalty for aggregate installment utilization, this means i can pay off one of my vehicles sooner without a potential mortgage hit. nice.
Sometimes there is some effect on the mortgage scores. I found an effect on my TU FICO 4. It had about 20% of the signal strength as the effects on my FICO 8's. There was no effect on the EX FICO 2 or EQ FICO 5. However, when @Revelate was gauging these things, he found a small effect on EX FICO 2 and no effect on the other two.
Possible it is scorecard dependent on the mortgage trifecta unlike FICO 8 I suppose. I am absolutely confident in my data points as being gold standard; however, I was on a dirty scorecard for sure and not sure you were SJ for your data?
@Revelate wrote:Possible it is scorecard dependent on the mortgage trifecta unlike FICO 8 I suppose. I am absolutely confident in my data points as being gold standard; however, I was on a dirty scorecard for sure and not sure you were SJ for your data?
No I was on a "clean" scorecard.