Mortgage Rates by Credit Score
Your credit score is the single biggest factor in the mortgage rate you receive. See the rate ranges for each credit tier.
Rate Ranges by Credit Score
| Credit Score | Rating | 30-Year Fixed | 15-Year Fixed | FHA |
|---|---|---|---|---|
| 760-850 | Excellent | 6.45% | 5.82% | N/A |
| 700-759 | Good | 6.67% | 6.04% | 6.25% |
| 680-699 | Above Average | 6.84% | 6.22% | 6.35% |
| 660-679 | Average | 7.06% | 6.44% | 6.50% |
| 640-659 | Below Average | 7.49% | 6.87% | 6.75% |
| 620-639 | Fair | 8.04% | 7.37% | 7.00% |
| 580-619 | Poor | Limited | Limited | 7.50% |
How Credit Score Impacts Your Mortgage
On a $320,000 30-year fixed mortgage, the difference between a 760+ credit score (6.45%) and a 620 score (8.04%) is approximately $330 per month, or about $119,000 in total interest over the loan's life.
Lenders use your FICO score to assess risk. Higher scores indicate a stronger repayment history, which translates to lower default risk and better rates. Most lenders use the middle of your three bureau scores.
FHA loans are more forgiving of lower credit scores (minimum 580 with 3.5% down), but they require mortgage insurance premiums (MIP) for the life of the loan, which adds to total costs.
How to Improve Your Score Before Applying
Check Your Score First
Get your free credit report from annualcreditreport.com before applying. Know where you stand and dispute any errors.
Pay Down Credit Card Balances
Reducing your credit utilization below 30% (ideally below 10%) can quickly boost your score by 20-50 points.
Avoid New Credit Before Applying
Each new credit inquiry can lower your score by 5-10 points. Avoid opening new accounts 3-6 months before a mortgage application.
Keep Old Accounts Open
Length of credit history matters. Keep old credit cards open even if you do not use them regularly.
See how different rates change your monthly payment.
Government-backed loans with lower credit requirements.