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Should I pay off my mortgage early

My mother passed away in 1999 and left the rental property in Long Beach, CA to me and my brother (VALUE $566K, BALANCE $152K). The payment history is excellent and even getting ready to pay off early (January 2019), but I know that credit can drop if revolving line is removed. Myself and my brother are on the home, he has a 545 FICO and I have a 789 FICO. I don’t want to hurt his credit. Will this hurt him if I pay off the home in July this year? Thank you for the help! by Brentwidthfamily2... from Agoura Hills, California. Apr 27th 2018 Reply

Blake Kleckner (BlakeK)
#391 ranked lender in California - 261 contributions

You are correct that removing a revolving line of credit can adversely affect FICO scores, however, your mortgage payment is an installment debt. Consequently, as long as the payment history has been current, your and your brothers scores shouldn't decline. I say shouldn't because the credit industry is a "strange world" and sometimes things happen that shouldn't for various unknown reasons. However, because the mortgage history will stay on your credit reports for many years, and if it is without any recent blemishes, the scores should be fine. If you have any other questions or a looking to refinance or sell a home, please give me a call 16/7, or email me your phone number so I can call you, and I'll be happy to answer any other questions . To learn more about me and our mortgage brokerage, click on my picture. When the next page pops up, click on "Website" and you will be redirected to ours. If you get a chance, read some of my blogposts on Lender411. They are quite informative. We work exclusively in CA and get loans done fast, typically in less than 30 days, at low interest rates and costs. I started doing mortgage loans in CA in 2005, only do them here so I have an exceptional understanding of this extraordinary market, and, unlike the vast majority of loan officers, I am an accountant by education. As such, I am able to analyze current market conditions and structure creative loan alternatives for my clients in a manner much different, and more advantageous to them, than virtually all other loan officers. Representing more than 60 quality lenders that offer in excess of 1,500 loan programs, we definitely have something for everybody.

Apr 27th 2018
William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,728 contributions

A mortgage and a revolving line are two separate things.. paying off a credit card to zero might lower someone's scores, but if he is at 545, it wont be of any significant.. but you're talking about a credit card, you're talking about a mortgage (installment debt).. and a paid off mortgage should improve the score.. not lower it.. I'm a preferred Lender with California and Arizona being my primary markets. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 NMLS# 226347 / LendUS, NMLS 1938/ AZMB0121893

May 1st 2018
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