I am scheduled to close on a mortgage refinance tomorrow, I was wondering if anyone has any insights the impact this may have on FICO? I am refinancing the closing costs which may add an additional $4000 to my mortgage . Additonally, I am refinancing with the same bank from a 20 year to a 15 year term. Any response is welcomed and thanks in advance!
Credit risk score is based on various factors. One is the average age of your accounts, and another is the age of the most recent account. Even though you'll be with the same bank, it will be listed as a new tradeline for the new account, and the old one will be updated to indicated PAID/CLOSED and a $0 balance. Your score will initially drop a little bit (the new account, a *slightly* larger amount on the new account, as well as the inquiry/ies that the lender used when pulling your credit), but as long as your credit was reasonably good to being with, it should be of minimal impact.
