Your credit score is one of the biggest factors in determining your mortgage rate. A difference of just 20 points can change your monthly payment by hundreds of dollars over the loan term.
Credit Score Rate Tiers (2026 Estimates)
760+: Best rates. 30-year fixed ~6.0%
720-759: Excellent. 30-year fixed ~6.1%
680-719: Good. 30-year fixed ~6.4%
620-679: Fair. 30-year fixed ~6.9%
580-619: Poor. FHA loans available, rates ~7.5%
Below 580: Very difficult without significant down payment or FHA
Cost of a Lower Score
On a $400,000 30-year loan, a borrower with a 620 score pays roughly $80 more per month than someone with a 760 score. Over 30 years, that's nearly $29,000 in extra interest.
Improving Your Score Before Applying
Pay down credit cards below 30% utilization
Dispute errors in your credit report
Avoid new credit inquiries 6 months before applying