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punkinmi

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i paid my house off, by remortgaging for smaller pymt. and my score went down????

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Top Contributor
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If you refinanced your mortgage your score would most likely drop for several reasons.

1. Hard credit pull to get the new financing

2. New account opening (the older the account the better)

3. Higher "remaining loan balance".  Say you had a 100k loan and were down to 80k (80% of the loan amount outstanding) and refinanced to a lower rate for lower payments.  It would show as 80k owed on a loan of 80k (100% of the loan outstanding).

I had the same thing happen when I refinanced a vehicle at a lower rate after I had already paid half of it off.  It goes based on the outstanding balance of the loan, not compared to the value of the underlying asset as you would think.

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