How Credit Scores Affect Your Mortgage Rate
The importance of a high credit score is now being played out in the interest rate a buyer can get. Fannie Mae, Freddie Mac, and now FHA have “tiered” pricing. Add-ons to the price of a rate are now assigned to a “tier” of credit scores.
Tiers for Conventional Loans
Credit Score Percent Down Estimated Increase in Interest Rate
680-719 Less than 40% .125%
660-679 Less than 30 .25-.375%
660-679 More than 30%/less than 40% .125%
640-659 Less than 30% .5%
640-659 More than 30%/Less than40% .125%
620-639 Less than 30% .625%
620-639 More than 30%/Less than40% .25%
Below 620 Less than 30% .75%
Below 620 More than 30%/Less than40% .25%