Points lost for closed mortgage

[disdreamin]

The verdict is finally in, I think. It appears that the closed mortgage resulted in a 22 to 25 point drop in my FICO 8 scores. Those score changes were reported 8/1 and I received the alerts today.

I expect another drop shortly due to a new hard pull that occurred today, and a new loan which should begin reporting next month will also impact scores. It'll be interesting to see how it shakes out once all those changes are in. On the upside, it didn't tank my scores so that's nice.

[pizzadude]

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@disdreamin wrote:

The verdict is finally in, I think. It appears that the closed mortgage resulted in a 22 to 25 point drop in my FICO 8 scores. Those score changes were reported 8/1 and I received the alerts today.

I expect another drop shortly due to a new hard pull that occurred today, and a new loan which should begin reporting next month will also impact scores. It'll be interesting to see how it shakes out once all those changes are in. On the upside, it didn't tank my scores so that's nice.

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This was your only open installment loan?  Or do you have any others, i.e. auto, student loans, etc..?

[hsfun2019]

I read this and thought I'd made a midnight posting.... as this exact same thing happened to me.  Closed a mortgage from 06....  score dropped 20 pts...  **bleep**.

Not wanting to see what happens when the equity loan drops off from 07...  

[disdreamin]

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@pizzadude wrote:

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@disdreamin wrote:

The verdict is finally in, I think. It appears that the closed mortgage resulted in a 22 to 25 point drop in my FICO 8 scores. Those score changes were reported 8/1 and I received the alerts today.

I expect another drop shortly due to a new hard pull that occurred today, and a new loan which should begin reporting next month will also impact scores. It'll be interesting to see how it shakes out once all those changes are in. On the upside, it didn't tank my scores so that's nice.

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This was your only open installment loan?  Or do you have any others, i.e. auto, student loans, etc..?

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It was my only open installement loan at that time, yes.

[disdreamin]

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@hsfun2019 wrote:

I read this and thought I'd made a midnight posting.... as this exact same thing happened to me.  Closed a mortgage from 06....  score dropped 20 pts...  **bleep**.

Not wanting to see what happens when the equity loan drops off from 07...  

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Yikes, hopefully there's not a hit for each loan that drops off. I have no idea what this did to my mortgage score (or really anything besides FICO 8 scores) but I may consider monitoring to see how it all shakes out.

[FireMedic1]

@disdreaminthats what got ya. No loans reporting. I know it doesnt make any sense. We pay on time for so long and then get the ax when we pay something off. If your with a CU look into a SSL loan. NFCU has SSL's if you can join. When and if you get an SSL. Once it posts then pay it down to  <8.99% and those points will come back.

[disdreamin]

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@FireMedic1 wrote:

@disdreaminthats what got ya. No loans reporting. I know it doesnt make any sense. We pay on time for so long and then get the ax when we pay something off. If your with a CU look into a SSL loan. NFCU has SSL's if you can join. When and if you get an SSL. Once it posts then pay it down to  <8.99% and those points will come back.

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Not going to worry about it. I've got a fresh auto loan that will report and I'll just pay it down over the next few months. I'm not really concerned about the impact to my scores, my FICO 8's are all between 820 and 830 after the drop and I can't imagine my mortgage or auto scores are horrible.

[Anonymous]

I haven't posted here in forever but for the life of me I cannot understand why you would lose points for paying back a loan early or on time. If I lent a friend money that we agreed would be paid back in a year and he pays me back in 6 months am I more or less likely to feel comfortable loaning him money again?

[SouthJamaica]

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@Anonymous wrote:

I haven't posted here in forever but for the life of me I cannot understand why you would lose points for paying back a loan early or on time. If I lent a friend money that we agreed would be paid back in a year and he pays me back in 6 months am I more or less likely to feel comfortable loaning him money again?

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At least some of the FICO scoring models penalize you for having no unpaid loans.

Is it rational? No.

But is it a fact? Yes.

[sixfour1]

I got dinged 25 points because a company bought my home loan. :-(