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Mortgage payoff vs FICO scores

Regular Contributor

Mortgage payoff vs FICO scores

I'm 7 years into a 30 year mortgage.  My scores are in the 700's.  If I pay off the mortgage, what will happen to my scores?


Message 1 of 3
Valued Contributor

Re: Mortgage payoff vs FICO scores

Generally speaking nothing.


Sometimes it increases your score, but YMMV.


The mortgage should still report for several years.

Good Luck
May all your dreams and wishes become a reality!
Message 2 of 3
Valued Contributor

Re: Mortgage payoff vs FICO scores

I have several old, paid mortgages still showing on my CR.  When I added my new mortgage it produced a small bump, less than 20 points.  But Credit Mix has three components - revolving, installment, and mortgage.  All things being equal I believe having three bank cards, one installment and one mortgage active are optimum. 


So you might see a small downward move in score, but should not do things that don't make sense financially just for credit scoring purposes.  If your scores are in the 700s they'll probably still be in the 700s after you pay off the mortgage.

BK7 Filed 8/11/2009 Discharged 11/23/2009. Purchased new home 4/11/2012
Starting Score:11/16/2009 EQ 566 11/16/2009 TU 538
Interim Score: 12/27/2012 EQ 683 09/17/2012 EX (lender) 670 1/01/2013 TU 701
Current Score: 11/06/2013 EQ 708 11/06/2013 EX 702 11/16/2013 702 11/06/2013 TU 729
Goal Score: EQ 740 EX 740 TU 740
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