Credit Scores have a direct impact on your home loan terms.  Both home loan interest rates and mortgage insurance rates (when applicable) decrease as credit scores increase.

Credit Score Ranges and Your Rates

A tier system is used most commonly to determine rates for both mortgage products and mortgage insurance products.   The most common tier system is based on 20 point increments and looks like this:

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


In addition, JUMBO Loan Investors and Mortgage insurance Companies may utilize 2 to 3 additional tiers to grant the lowest available rates to consumers. 

For example, you may see the following:

740 to 759
760 to 780
780 +

By Jeremy House