@EW800 wrote:Hello Friends!
I now every profile is differnet, however with very high mortgage scores (middle score about 822), how long in general does it take of solid payment hisotry for scores to reboud after a new mortgage hits the credit reports? Is it just a matter of months or is it more like years?
Any guesses as to how much of an intial hit there would be when a new mortgage first hits? This would be the only open installment loan.
Thanks!
Is it replacing an older mortgage? If so, what percentage of the original mortgage did the most recent reported balance represent?
It's just a new tradeline AFAIK in your scenario.
So talking AOYA reset on clean files like yours (a year for FICO 8) and maybe some decrease in AAOA. Not a big deal, congrats on the house!
@EW800 wrote:The prior mortgage is from so long ago that it has fallen off of all reports. I do have two car loans showing that are now closed, fully paid with perfect history.
OK. Then I don't think you'll lose too many points. And I don't think it will take long to recover them.
On the upside you'll gain points in your FICO 8's and 9's for having an open loan. Those score models have been penalizing you for having no open loans.
You'll lose points in tems of the inquiries, AoYA, AAoA, and high installment loan balance.
There is a factor in which I believe, but can't document and don't fully understand -- that somewhere in the FICO algorithms, there is an advantage given to mortgages over other installment loans. The FICO gremlins just seem to have a belief that mortgages are a sign of stability.
So I expect it to be something of a wash, with maybe a net short term loss of 10-15 points.