Current Mortgage Rates by Credit Score | 2026

Mortgage rates by credit score vary depending on your finances and lender. A score of 740 typically guarantees the lowest interest rates, but borrowers with moderate credit can find competitive rates through specific loan programs.

Remember, your credit score is only part of the equation. It’s important to explore all options to secure the best mortgage rate for your credit profile.

In this article (Skip to...)

• Credit scores and rates
• Mortgage rates by credit score
• Video: Mortgage application and approval
• Monthly payments by score
• Mortgage rates by loan type
• Current mortgage rates
• Mortgage refinance rates
• FAQ

How credit scores affect mortgage rates

Your credit score affects your mortgage rate because lenders use it to judge how likely you are to repay a loan. Higher scores signal lower risk, so lenders offer lower interest rates. Lower credit scores indicate greater risk, which leads to higher rates and more expensive loans. The score itself is based on your credit history, including how you’ve handled debt, made payments, and used credit over time.

Mortgage rates by credit score

Mortgage interest rates can vary significantly based on credit scores, leading to substantial differences in monthly mortgage payments and long-term interest costs for homeowners.

FICO, the biggest credit scoring company in American real estate, provides a helpful online calculator that illustrates how much mortgage rates can differ based on credit scores. Here’s an example of how average annual percentage rates (APRs) varied by credit score in early 2025:

*Average APR from myFICO.com is for sample purposes only and based on a 30-year fixed-rate mortgage. Your own interest rate will be different..

Mortgage payments by credit score

According to the Mortgage Bankers Association, the average loan amount for a new single-family home purchase was $402,873 in November of 2024.

We’ll use that loan amount, and the APR estimates from FICO (above), as an example to show how credit tiers impact mortgage payments and long-term interest costs. If you compare the highest and lowest credit score tiers, the borrower with better credit saves about $165 per month and $59,274 in total interest over the life of their mortgage loan.

*Payment examples and APRs sourced from myFICO.com. Payments based on a loan amount of $402,873 and a 30-year fixed-rate mortgage loan. Your own interest rate and monthly payment will be different.

In addition to mortgage rates by credit score, home prices and mortgage insurance can greatly impact your monthly mortgage payments, especially in high-cost areas like New York. Using a mortgage calculator can help you estimate these costs and compare different loan options.

Conventional loans require private mortgage insurance (PMI) for down payments less than 20% of the home price, while FHA loans have both upfront and annual mortgage insurance premiums (MIP).

The type of loan you choose, such as a fixed-rate or adjustable-rate mortgage (ARM), can also affect your interest rate and long-term costs. Consider your financial situation and goals when selecting a loan for your primary residence.

Mortgage rates by loan type

In addition to credit score, mortgage rates also vary by loan type. Here are some common loan types and their typical rates.

• Conventional loan rates: Conventional loans are the most common mortgage loans, usually offering competitive rates for borrowers with good credit. Rates may be slightly higher than FHA or VA loans. Today’s mortgage rate for conventional loans is % (% APR).
• FHA loan rates: The Federal Housing Administration guarantees FHA loans, which is why they often have lower rates than conventional loans. Today’s mortgage rate for FHA loans is % (% APR). These loans are good for first-time home buyers with lower credit scores or limited down payments.
• VA loan rates: VA loans are available to eligible military members, veterans, and spouses. They often have lower rates than conventional loans and don’t require a down payment. Today’s mortgage rate for a VA loan is % (% APR).
• USDA loan rates: USDA loans are designed for rural homebuyers and offer competitive rates for those who qualify. These loans typically require a minimum credit score of 640.
• Jumbo loan rates: Jumbo loans are mortgages that exceed conforming loan limits set by Fannie Mae and Freddie Mac. Due to the higher loan amount, jumbo loans often have slightly higher rates than conforming loans.

Current mortgage rates

Mortgage rates by credit score are heavily influenced by the Federal Reserve’s adjustments of the federal funds rate. This is the rate banks charge each other for overnight loans.

• Mortgage rates usually go up when the Fed raises its rate, which means higher monthly payments for homeowners.
• Mortgage rates often drop when the Fed lowers the federal funds rate, making home loans cheaper.

These national average rates affect how much home buyers can afford, which can change demand in the housing market. Understanding these rates is key for those looking to make informed decisions about homeownership.

*Current mortgage rates and annual percentage rates for sample purposes only. See our full list of interest rate assumptions here.

Mortgage refinance rates by credit score

Your credit score has a significant impact on refinance rates, just like it does on purchase mortgage rates. Lenders use your credit score to assess the risk of loaning you money, and this risk assessment determines the interest rate you’re offered.

Generally, homeowners with higher credit scores are rewarded with lower refinance rates, while those with lower scores may face higher rates. However, refinance rates may be slightly different from purchase mortgage rates due to the lower risk for lenders, as the homeowner has already been making regular mortgage payments.

Here’s an example of how refinance rates could vary by credit score tier:

*Refinance APR estimates are for sample purposes only and based on a 30-year fixed-rate mortgage refinance. Your actual rate will depend on your personal finances.

Cash-out refinance rates by credit score

Cash-out refinances, which allow homeowners to access their home equity by refinancing their mortgage for a higher amount, typically come with slightly higher interest rates compared to traditional refinances. This is because cash-out refinancing is considered riskier for lenders, as the homeowner is taking on more debt.

Here’s an example of how cash-out refinance rates might look based on credit score tiers:

*Cash-out refinance APR estimates are for sample purposes only and based on a 30-year fixed-rate mortgage refinance. Your actual rate will depend on your personal finances.

Mortgage refinancing tips and options

If you’re considering refinancing your mortgage, it’s a good idea to check your credit score and compare rates from multiple lenders. You can use a mortgage calculator to estimate your new monthly payments and see how much you could save by refinancing.

Keep in mind that refinancing involves going through the mortgage application process again, and your credit score will be a key factor in determining your interest rate. If you’re considering a cash-out refinance to tap into your home equity for a short-term expense, like a home renovation, you might face higher rates than you would for a standard rate-and-term refinance.

Some tips for homeowners looking to refinance:

• Check your credit report for errors and dispute any inaccuracies.
• Pay down existing debts to lower your debt-to-income ratio.
• Make all mortgage and other debt payments on time.
• Avoid opening new credit accounts or making large purchases before refinancing.
• Compare refinance rates from multiple lenders to find the best deal.

Even if you have a lower credit score, you may still have refinance options. For example, FHA Streamline Refinance and VA Interest Rate Reduction Refinance Loan (IRRRL) programs have more lenient credit requirements than traditional refinances.

Ultimately, understanding how your credit score impacts your refinance rate is key to making an informed decision about whether refinancing is right for you. By taking steps to improve your credit and shopping around for the best rates, you can potentially save thousands of dollars over the life of your mortgage.

Why your credit score impacts your mortgage rate

Lenders use your credit score to assess how likely you are to repay a mortgage. A higher score indicates lower risk and encourages lenders to offer lower interest rates. Conversely, a lower score indicates higher risk and causes lenders to charge higher rates. Several financial factors also influence the rates lenders offer:

• Risk-based pricing: Lenders set rates and fees based on the level of risk your credit profile poses.
• Down payment amount: A larger down payment lowers the lender’s risk and results in a lower rate.
• Loan amount: Larger loan amounts pose more risk for lenders and typically lead to higher rates.
• Debt-to-income ratio: A lower DTI ratio shows you can manage debt effectively and helps you qualify for better rates.
• Discount points: Paying points upfront can lower your interest rate and reduce your long-term borrowing costs.
• Closing costs: Rolling lender fees and closing costs into the loan instead of paying them upfront can increase your interest rate.

How to get the best mortgage rate for your credit score

Comparison shopping for your mortgage will save you money. The CFPB says failing to comparison shop costs the average homebuyer approximately $300 per year and many thousands over the life of the loan. With some upfront preparation, you can get the lowest possible mortgage rate for your credit score and save on your home loan.

• Save more than the minimum down payment to strengthen your loan application.
• Pay down debts to lower your debt-to-income ratio.
• Check your credit report for errors.
• Pay bills on time to improve your credit score.
• Keep credit card balances below 30%.
• Avoid opening or closing credit accounts before applying for a mortgage.
• Consult a housing counselor to assess your finances and determine the best time to apply.

FAQs about mortgage rates by credit score

Check your mortgage rates by credit score

Understanding the impact of your credit score on mortgage rates is important, but remember, it’s just one piece of the puzzle.

Along with mortgage rates by credit score, lenders also consider factors like loan type and term length (such as 30 or 15 years), as well as the current state of the market. Even if you have a lower credit score, there are strategies—like obtaining a rate lock—to secure a competitive rate from the best mortgage lenders.

Eager to discover what mortgage rate you qualify for? Consider applying for mortgage pre approval or click the links below to compare rate quotes from multiple lenders, without any commitment.