Credit Score & Your Rates

Credit Scores directly impact your home loan terms.  In fact, both home loan interest rates and mortgage insurance rates (when applicable) decrease as credit scores increase.

Credit Scores and Mortgage Interest Rates

Mortgage lenders use a credit score tier system in order to determine interest rate (other factors such as occupancy also factor into interest rate received). Additionally, mortgage insurance products also factor in credit score.   The most common tier system is based on 20 point increments and looks like this:

Conventional Home Loan Credit / Rate Tiers

600 to 619  Highest Rates
620 to 639
640 to 659
660 to 679 
680 to 699
700 to 719
720 to 739
740+              Lowest Rates

VA and FHA Home Loan Credit / Rate Tiers

580 to 600   Highest Rates
600 to 619
620 to 639
640 to 659
660 to 679 
680 to 699
700+              Lowest Rates

JUMBO Home Loan Credit / Rate Tiers

660 to 679  Highest Rates
680 to 699
700 to 719
720 to 739
740 to 759
760+       Lowest Rates (some JUMBO lenders use a 780+ tier for Lowest Rates)