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NIHON1

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HOW DOES PAYING OFF YOUR MORTGAGE AFFECT YOUR CREDIT SCORE

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When you pay off a mortgage, you will see a drop in your credit score.   This is caused because of the age of your accounts.  Presuming this account is 10 years old or more and probably one of your oldest trade lines.   You will also see a reduction as the variety of your accounts will not include the mortgage.   Presuming you have only one mortgage on file.   The trade off is that you will no longer be paying interest on this amount and you would own your home outright.   If you have the cash to make the pay off, look at dumping the cash onto accounts (IE: Credit cards) where you are paying a higher interest rate, keeping the accounts open of course.

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