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HuntRob78

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Why would my score drop just because I have an entire mortgage showing paid off; isn't that good?
My original mortgage was paid in full in Dec '12, and because the Mortgage co. that did the Refi will not accept any payment 'till Feb '13, it looks as though I just paid my house off. One would think that "Paid in Full" on a mortgage would reflect positively on a credit score, but instead mine has dropped nine points from 697 to 688. Will it rebound when again when the new mortgage payment is reported, and if so, how long will it take?

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No points for Closed Credit.

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You would think that by paying off your mortgage, car loan or cancelling an old credit card that it would reflect on your score by raising it.  Not true.

An old loan, like your old mortgage, weighs in heavily toward calculating your credit score, only as long as it's open.  There are many factors in that loan that are used in calculating your score.  Once closed, those important factors are now gone. 

Now you have a new loan (and the hard inquires that were made to open it).  It's fresh.  It's new.  It has no proven payment history, and it's just been reported.  Instant point loser!

I think most of the points you lost is due to the new loan, but this should be temporary.  After a few months of making payments, you should recover most of the lost points.  Possibly, even after a year, your score might even be higher than when you started.

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