Mortgage Rates by Credit Score

Compare mortgage rates by credit score

Mortgage lenders price rates in credit score tiers, typically moving in 20-point increments.

The table below shows current mortgage rates and payment estimates across credit score ranges:

“Mortgage rates are driven by macroeconomic factors, but your credit profile, loan type and down payment also significantly impact them,” explained Chad Smith, president of mortgage company Better.com. Other risk factors, including your debt-to-income (DTI) ratio and loan-to-value (LTV) ratio, also influence your final rate.

Different loan programs also carry different rate structures. FHA loans often cost less for borrowers with lower credit scores because mortgage insurance is more affordable than conventional loan insurance. VA loans usually price 0.15% to 0.25% lower than conventional loans, while jumbo loans run 0.25% to 0.5% higher.

Request a Loan Estimate from multiple lenders to compare the true cost. This document shows your actual APR, including fees, to help you make an accurate comparison beyond advertised rates.

Minimum credit score you need for mortgages

Mortgage lenders evaluate credit scores in tiers, and each tier carries different pricing and eligibility rules. “A score of 760 or higher is considered excellent, qualifying borrowers for the best available rates and the broadest set of loan options,” Smith emphasized.

Before you apply for a mortgage, pull your credit reports from all three bureaus at AnnualCreditReport.com and check your scores. Lenders use your middle score — or the lower middle score if applying with a co-borrower.

Here’s how lenders interpret credit score ranges and what impact each tier has on your mortgage options, according to Steven Glick, director of mortgage sales at HomeAbroad:

Minimum score requirements also vary by loan type, as broken down below:

How improving your credit score lowers mortgage rates and payments

Moving up credit score tiers delivers substantial savings. The table below shows how payment amounts and total interest change across credit score tiers. These estimates are based on a $300,000, 30-year fixed-rate mortgage using current myFICO rates (November 2025). In this scenario, improving from 620 to 760 or higher can save you $156 per month and $56,103 in interest over 30 years.

Tip: Don’t just focus on the monthly payment — look at the total interest you’ll pay over the loan’s life to understand the true cost of a lower credit score.

Mortgage rates by credit score for home purchase vs. refinance

Lenders price purchases, standard refinances and cash-out refinances differently based on risk, with gaps widening for borrowers with lower scores.

“Generally, purchase loans get the most favorable pricing, especially for well-qualified borrowers with scores above 740,” Smith said. “Standard refinances tend to price slightly higher, and cash-out refinances carry the highest rates due to increased risk and loan size.”

Glick explained how rates typically differ by transaction type for the same borrower:

Credit score tiers amplify these pricing differences. A borrower with a 760 score might secure a purchase rate in the low to mid-6% range, while a cash-out refinance could push into the high 6% range. Borrowers with credit scores less than 680 face even larger gaps as credit-based adjustments stack on top of transaction-type premiums.

Some loan programs offer relief from strict credit requirements. For instance, FHA streamlined refinances place less emphasis on credit scores, while VA Interest Rate Reduction Refinance Loans (IRRRLs) can bypass full income verification. Both work well for borrowers who already have these loan types and want to refinance without extensive underwriting.

Refinance rates can vary more across lenders than purchase rates, so do some comparison shopping. Make sure you’re comparing your new rate to your current loan, not just to market averages, to calculate your actual savings.

How to improve your credit score to get better mortgage rates

“Making your payments on time is the most important factor of credit,” said Dean Rathbun, a mortgage loan officer at United American Mortgage Corporation. “The second is keeping your (credit card) balances down to 30% or less of the high limit of the credit item.”

To start, continue making on-time payments because missing even one payment can drop your score substantially and take up to 12 months to recover. And before you apply, Glick suggested taking these steps to improve your score in as little as 30 days:

• Reduce credit card utilization ratio. While keeping your utilization ratio under 30% is the common recommendation, aim for 10% or less if possible. Time your payments before your statement closes so the lower balance appears on your credit report.
• Address overdue accounts immediately. Recent missed payments damage your score more severely than older delinquencies. If you have the funds, prioritize bringing past-due accounts current to restore “paid as agreed” status.
• Review reports for inaccuracies. Get your credit reports from all three bureaus and dispute any unfamiliar accounts or incorrect payment records. Corrections typically take 30 to 45 days.
• Manage credit accounts strategically. Avoid opening new credit cards or auto loans for at least six months before your mortgage application, as they temporarily lower your score and can push your DTI ratio above your lender’s preferences. Don’t close old, paid-off cards either — doing so reduces your available credit and shortens your credit history.

Should you wait to boost your credit score or lock your mortgage rate?

“I don't usually suggest waiting to buy a home for a small 20-point FICO score bump,” said Rathbun. “A 0.125% difference in rate hopefully won’t affect your mortgage qualification, and you don't want to pass up a great home when you find one.”

But ultimately, the decision to delay your mortgage application while improving your credit depends on how much you can realistically improve your score and what mortgage rates are doing.

Here’s when waiting makes sense versus when you should lock now:

Use a mortgage calculator to model both scenarios before deciding. Compare what your monthly payment would be at your current score and rate versus your improved score. It may also be worth asking lenders about their rate lock policies, which typically range from 30 to 120 days.