See how your credit score impacts your mortgage rate
Current mortgage rates, pushing 7%, have been around for about three years — but hadn't been previously seen since 2007.
Even so, you can lower the mortgage rate a lender offers you by as much as 1.25 percentage points by increasing your credit score. In the best-case scenario, that could save you over $91,000 in interest over the life of a $300,000 home loan and reduce your monthly payment by over $250. (Based on the interest rate difference from the lowest to the highest credit tier on a loan with 20% down and one discount point, which we'll dive into below.)
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Learn more: The minimum credit score needed to buy a house
Mortgage rates by credit score: July 2025
Compiled by Curinos, a data and analytics company for myFICO.com, here are sample average national mortgage annual percentage rates (APRs) by credit score tier as of July 2025.
At the time of writing, the average APR listed is the same once your credit score hits 700. But keep in mind that this won't always be the case, and these rates are not guaranteed. Your credit score is a major component in determining your mortgage rate, but factors such as your debt levels and down payment size also play a role.
How does your monthly mortgage payment change by credit score?
The table below shows the representative credit score tiers with sample monthly mortgage payments and the total interest paid over a 30-year term, using the same loan parameters as above.
Read more: How much is the monthly payment on a $300,000 mortgage?
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Other factors that impact your mortgage rate
In addition to your credit score, mortgage lenders will consider such factors as:
Your debt-to-income ratio. DTI ratio is calculated by dividing your total monthly debt by your monthly income before taxes and deductions.
The loan-to-value ratio of your mortgage. LTV ratio is the amount of your mortgage compared to the market value of the home. It is primarily a function of your down payment.
Your down payment amount. The more money you put down, the lower your LTV ratio. That gives a lender more pledged collateral to work with. The more security a lender has, the better your mortgage rate may be.
The length of your loan. Called the 'loan term,' the repayment period can certainly impact your mortgage rate. A 15-year fixed mortgage loan has a lower rate than a 30-year fixed-rate mortgage.
Dig deeper: How to choose between a 15-year and 30-year mortgage term
Mortgage rates also vary by loan program
The most common mortgage is a conventional loan. Lenders issue conventional loans based on qualifications set by government-backed companies Fannie Mae and Freddie Mac. The mortgage rates you see above are for conventional loans.
However, there are other loans that are backed by government agencies, such as:
USDA loans for suburban and rural mortgages
FHA loans, often used by first-time home buyers of modest financial means.
VA loans, issued to borrowers with military connections.
Of all these loan types, VA loans often have the lowest mortgage rates.
Keep reading: The best VA mortgage lenders right now
Mortgage rates by credit score FAQs
What is the 800 credit score mortgage rate?
As of July 16, 2025, an FICO 800 credit score will earn you a 6.644% mortgage rate. This is based on a national average, and your home loan rate could be higher or lower, depending on your down payment, the property's location, and your credit profile.
What credit score is needed for a $250,000 house?
With an FHA loan, you may qualify to buy a $250,000 house with a credit score as low as 500, with 10% down. A conventional loan will likely provide a lower mortgage rate, but you'll need a 620 FICO score to be eligible.
Will interest rates reach 3% again?
Historically low mortgage rates of 3% and below resulted from aggressive interest rate cuts by the Federal Reserve in reaction to the COVID pandemic. For rates to sink that low again would take an equally serious threat to the nation's economy.
What is a good mortgage rate right now?
A good mortgage rate would be in the 6.77% range or lower. That's the median rate based on the current mortgage rates by credit score shown above. Freddie Mac reports that the average 30-year mortgage rate is 6.72% as of July 10, 2025. However, that rate may include fees and discount points.
Laura Grace Tarpley edited this article.
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