How Your Credit Score Affects Your Mortgage Rate
Why Credit Scores Influence Mortgage Rates
Lenders use your credit score to measure how risky it is to lend to you. Higher scores signal lower risk, which leads to lower interest rates. Lower scores mean higher risk, which increases the rate you receive.
Rate Differences by Credit Score Range
- 760+ scores usually qualify for the lowest rates
- 700–759 scores receive competitive rates
- 660–699 scores see moderate rate increases
- 620–659 scores face higher rates
- Below 620 often requires FHA or alternative loan options
How a Small Score Change Impacts Your Payment
Even a 20–40 point change in your credit score can shift your mortgage rate enough to raise or lower your monthly payment by hundreds of dollars over the life of the loan.
How to Get a Better Rate Before Applying
Pay down credit card balances, avoid new inquiries, and correct any errors on your credit report. These steps can improve your score and help you qualify for a lower rate.
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See how different loan programs match your credit score and financial goals.
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