Score drop due to new mortgage

[Dgimple]

Ex dropped 3 points when my $425,700 mortgage hit my report.....

Thought that it was going to tank...is this normal?

[Lel]

My score went up when my first mortgage hit. Even though it is a new account, it adds diversity to your credit mix, which is positive. It's an installment account, so it doesn't contribute to utilization. Others here have noticed minimal change when they have acquired new mortgages, so I think your experience is pretty typical.

[Anonymous]

Once your util goes down from 100% you should gain a few more points as well. Along with the effect of the new credit aging you should have a decent gain over the next 6-12 months.

Congrats on the new home!

[marty56]

I took a 15 point hit on EX and a 3 point hit on EQ for a new autloan but got the 15 points back on EX and all on EQ after I made 1 payment.  Check after your first payment is reported.

[Lel]

Utilization doesn't apply to installment loans like mortgages.

[Anonymous]

You are correct in that it does not count AS MUCH- but there are still installment utl point there. Getting the installment loan off 100% utl has gotten me points as well.

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Lel wrote:
Utilization doesn't apply to installment loans like mortgages.

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[Lel]

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@Anonymous wrote:

You are correct in that it does not count AS MUCH- but there are still installment utl point there. Getting the installment loan off 100% utl has gotten me points as well.

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@Lel wrote:
Utilization doesn't apply to installment loans like mortgages.

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Hmmm, I always thought that any score jump was because the first on-time payment was reported, which started a payment history in addition to having a new account.

But like you said, 100% utilization of installment doesn't count for much. I have a interest-only jumbo that still has its original principal balance, and at one point my score was close to the FICO maximum.