Does refinancing a mortgage hurt your credit score?

Question by tracyb67: Does refinancing a mortgage hurt your credit score?
I am in a arm loan and am looking to refinance after 2 years. I heard that refinancing can drop your credit score up to 30 points? Am i better off trying to sell or refinancing if i’m planning on selling after 5 years?

Best answer:

Answer by colemansbluff
I have never heard it will effect your score, if it saves you money I would go for it

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7 Responses to Does refinancing a mortgage hurt your credit score?

  1. mazziatplay says:

    Refinancing your loan should have minimal impact on your credit score.

    If you don’t have a second mortgage or equity line of credit you may qualify for a streamline refinance that will lower the costs and expedite the process for you.

    Feel free to email me with any questions.

  2. Yanswersmonitorsarenazis says:

    I could see it having a marginal negative impact, at least in the short term. You’ll have at least one new credit inquiry that will cost you a couple points. A new account might cost you a few more.

    How long is your loan fixed still before it adjusts? Is it going to adjust before you move? How long before? What’s the difference in cost between refinancing costs and any increased rate/payments on your existing, and for how long?

    I wouldn’t concern yourself about a small impact on your scores. What is a concern is whether you would actually really benefit from this refinance. A good loan officer will show you, clearly, on paper, what if any savings could be had over the expected time you think you’ll remain in your home. So go shop and find out.

  3. Nathan Grant says:

    Usually refinancing increases credit scores. The only effect is having a Mortgage Inquery and even then it won’t effect the credit unless you have too many inqueries done. Keep your shopping around at a minimum or look into a broker that can do the shopping for you. It all depends on the situation and what you are trying to accomplish. Your best bet would be a 5yr fix program if you are planning on selling th home. Shoot me an email if you have any other questions or want to look into your options. There are many different programs available that would get you out of the adjustment as well as save you some money on your monthly expenses.

    Nathan Grant

  4. white_lines15 says:

    Credit scores became common in the industry in the 1980’s, and today are widely accepted by lenders as a reliable way to evaluate a potential borrower’s willingness and ability to repay a loan. The process of calculating a credit score is quick, efficient and objective, enhancing business and helping consumers get the credit they need.

    A credit score is generated from the elements in a consumer’s credit history. A borrower’s credit status is condensed into a single number, which changes as the elements in a credit report change. For example, a late payment, the payoff of a loan or a newly acquired credit card account could cause a score to fluctuate up or down. The credit score reflects the risk level of lending to a potential borrower, with a higher number indicating lower risk.
    Individual lenders may use such elements as income, occupation and type of residence in determining their own custom credit score. Other factors include an applicant’s income vs. the size of the loan.

    Scores cannot use demographics which are prohibited under the Equal Credit Opportunity Act, such as race, color, religion, national origin, gender, age, marital status, receipt of public assistance or exercise of rights under the Consumer Credit Protection Act.

    Call me today to learn more!
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  5. djdraven99 says:


    but not paying your bills on time will hurt your score.

  6. justgetaloan says:

    Well there are many loan programs available for you, and no they wont drop your scores. Additionally if you are looking to sell in 5 years you may even consider a pay option arm. If you would like to hear more i may be contacted at 866 530 7300 ext 7305 or by email at

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