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To be honest, I don't follow credit scores, but if you are in the 800s and it drops into the 700s, it makes little or no difference to a lender (other than to lightly and superficially probe why it dropped). It appears to me most lenders look at the 680-700 line as the demarcation point for "good" loans.
As a general rule once you are above 740 any difference in rate whether you are at 748 or 818 is pretty much non-existent. With that said, I really haven't heard of paying off the mortgage will drop the credit scores by that much. The only thing I could potentially think of if there was very little or no other current credit History. Not so much cards with balances on them, but rather simply open accounts.
I tried to think that way, but you never know in the event of a financial catastrophe if you’ll need some extra dough. I guess if you’re in your 70’s and you have a few million in the bank you’re probably fine, most likely you won’t outlive your money. But I thought about it, the system is soooo rigged to keep you in debt. You need to have debt, to have credit to, to have more debt. And then the real BS stuff like insurance companies using credit history as part of how they base your rate. And other silly stuff like oil companies for example, they also do a credit check. “I plan to pay cash for my deliveries” “yes I’m sorry but we still need to run your credit”.
Suuuuck it you bastards!!!!
Oh, back to the OP, yes paying off the mortgage was an easy process. Just fork over your money and they send you a letter of satisfaction. Make sure your municipalities have been notified so that you get your tax bills.
Same with HO insurance.
You really do not need to have any debt to have credit. That is a bit of a misnomer. Now you do need to have some open accounts, but you you do not have to have any debt on those accounts.
Another thing to consider. Be gentle here. It is not for everyone, but in the event of dwindling funds there is always a reverse mortgage option. Thankfully, we probably will never be in that position, but it is always another option. The heirs (not in my case) will get less but that's the breaks.
As a general rule once you are above 740 any difference in rate whether you are at 748 or 818 is pretty much non-existent. With that said, I really haven't heard of paying off the mortgage will drop the credit scores by that much. The only thing I could potentially think of if there was very little or no other current credit History. Not so much cards with balances on them, but rather simply open accounts.
Exactly which is why I couldn't understand why Karl's head exploded over literally nothing.
Exactly which is why I couldn't understand why Karl's head exploded over literally nothing.
Yeah no. No head explosions.
At this stage, you are making more of a issue of my issue than I did.
I was angry yes, and I still think the system sucks. I pride myself on impeccable credit.
So even though going from say 800 to 720 or whatever may make absolutely no difference in terms of securing a loan or better rates or whatever, it still bothered me for being penalized for being responsible with my debts, even though it was a temporary drop.
I have severe OCD, stuff like this erks me. Might as well put the TP on the holder backwards.
Yeah no. No head explosions.
At this stage, you are making more of a issue of my issue than I did.
I was angry yes, and I still think the system sucks. I pride myself on impeccable credit.
So even though going from say 800 to 720 or whatever may make absolutely no difference in terms of securing a loan or better rates or whatever, it still bothered me for being penalized for being responsible with my debts, even though it was a temporary drop.
I have severe OCD, stuff like this erks me. Might as well put the TP on the holder backwards.
OMG!!! Talk about my head exploding. I can't use it that way.... always have to turn it around before using.
(*crap {no pun intended}, you had to bring that up just when I was beginning to think I was well adjusted)*
Was just thinking about having no mortgage. Even with no mortgage it would still cost me about $2300 a month just to have the house here on LI.
Taxes pretty much are a 2nd mortgage lol
In fact, I believe every house I owned on LI aside from 1, the taxes were higher than the principle and interest!
Plus insurance, double whammy if you need flood.
So even mortgage free on LI is still a burden.
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