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Yahoo
18-07-2025
- Business
- Yahoo
See how your credit score impacts your mortgage rate
Since 30-year mortgage interest rates plunged in 2021, potential home buyers have been comparing prevailing home loan interest rates to historic lows. It's easy to understand. Rates in the 2% to 3% range happened less than four years ago. They are permanently imprinted in our brains. 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.) This embedded content is not available in your region. 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 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? Up Next Up Next 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.
Yahoo
01-04-2025
- Business
- Yahoo
myFICO Sees Significant Surge in Consumers Checking FICO Scores
As more consumers take control of understanding their credit health, myFICO's free FICO® Score program has provided millions with the tools and education to help them succeed BOZEMAN, Mont., April 01, 2025--(BUSINESS WIRE)--In honor of National Financial Literacy Month, global analytics software leader FICO (NYSE: FICO) is encouraging consumers to take charge of their financial well-being by checking their FICO® Scores for free at As more people recognize the importance of understanding their credit health, FICO has seen a nearly 70% increase in users accessing their FICO® Score 8 for free via myFICO over the past year. As the creator of the credit score that is used by the 90% of top U.S. lenders, FICO continues to lead the way in making credit scores more accessible and understandable for consumers through its commitment to financial education through a variety of initiatives, including: Consumers can visit to check and monitor their FICO® Score 8 for free. The site is regularly updated with credit education materials to help individuals understand their credit and financial standing. FICO® Score Open Access Program: Millions of consumers can access their FICO® Score directly through their bank's online platform, mobile app, or statements. FICO® Score A Better Future™: FICO's Score A Better Future program offers free nationwide credit education events. Participants learn about FICO® Score factors and receive personalized credit coaching from certified nonprofit counselors to support their financial goals. "We recognize that FICO Scores play a key role in life's big milestones, such as buying a car, getting an education or pursuing the dream of homeownership," said Geoff Smith, vice president and general manager of Consumer Scores at FICO. "We're encouraged to see more consumers turning to myFICO to access their FICO Scores for free. Our goal is to provide the clarity and confidence people need." The rise in myFICO users mirrors findings from a FICO study, which found that 74% of Americans believe their financial situation would improve with greater access to personal finance education and tools. The growing interest in resources like myFICO shows that consumers are actively seeking credit education. "One of the biggest misconceptions about credit scores is that checking your own FICO Score will lower it," said Jenelle Dito, vice president of Consumer Empowerment and Partnerships at FICO. "Consumers can check their FICO Score as often as they like through or their bank without it impacting their score. This is an important step in staying informed of their financial health." To learn more or enroll in the myFICO free FICO® Score program, visit About myFICO Get your FICO® Score from the people that make the FICO Scores, for free. Plus, free Equifax credit monitoring and a free Equifax credit report every month. No credit card required. For more information, visit About FICO FICO (NYSE: FICO) powers decisions that help people and businesses around the world prosper. Founded in 1956, the company is a pioneer in the use of predictive analytics and data science to improve operational decisions. FICO holds more than 200 US and foreign patents on technologies that increase profitability, customer satisfaction and growth for businesses in financial services, insurance, telecommunications, health care, retail and many other industries. Using FICO solutions, businesses in more than 80 countries do everything from protecting 4 billion payment cards from fraud, to improving financial inclusion, to increasing supply chain resiliency. The FICO® Score, used by 90% of top US lenders, is the standard measure of consumer credit risk in the US and has been made available in over 40 other countries, improving risk management, credit access and transparency. Learn more at the conversation at & FICO news and media resources, visit FICO and Score A Better Future are trademarks or registered trademarks of Fair Isaac Corporation in the U.S. and other countries. View source version on Contacts FICO Contact Julie Huangpress@
Yahoo
04-03-2025
- Business
- Yahoo
FICO Teams Up with Pro Volleyball Federation to Champion Financial Literacy for Volleyball Athletes and Fans
FICO's sponsorship focuses on raising awareness of financial literacy and credit education through volleyball athletes, engaging fellow athletes and fans to make informed financial decisions BOZEMAN, Mont., March 04, 2025--(BUSINESS WIRE)--Global analytics software leader, FICO has announced its sponsorship of Pro Volleyball Federation (PVF) for the 2025 season. Through this partnership, FICO will help raise awareness of financial literacy and credit education by engaging PVF athletes to share valuable insights including free access to myFICO, where they can check and monitor their FICO® Score. PVF athletes will also engage with fellow players and fans on social media channels to share experiences with and ways to access this valuable credit education content throughout the season to empower them to make better informed financial decisions and build foundations for a stronger financial future. PVF is the premier professional volleyball league in North America, offering top athletes the opportunity to compete at the highest level. Since its launch in 2024, PVF has experienced rapid growth, with record-breaking attendance, drawing more than 575,000 fans, millions of online viewers, and national media coverage, all reflecting the rising popularity of women's volleyball across the U.S. "The energy surrounding professional women's volleyball has never been greater, and welcoming an industry-leading organization like FICO underscores the growing impact of our league," said Jen Spicher, CEO at Pro Volleyball Federation. "Financial literacy and credit education play an important role in the lives of athletes and fans alike, and this collaboration adds another layer of support as they navigate their financial futures." FICO has long been committed to helping drive financial empowerment through credit education. The company works with students, adults, and community organizations to improve financial literacy in communities across the U.S. Research shows that individuals who track their FICO® Scores are more likely to have higher scores and fewer late payments. Knowing and tracking your FICO Score can improve financial decision-making. A recent Harris Poll survey commissioned by FICO found that 3 in 5 Americans (60%), including 50% of Gen Z (ages 18-27), believe personal finance is one of the most useful subjects in adulthood that can be taught in high school. Additionally, 25% of Gen Z feel that a lack of personal finance skills has prevented them from achieving financial goals. Furthermore, many Gen Z (43%) also believe that banks and financial institutions should be most responsible for educating people on how to manage their finances, such as using credit responsibly, managing debt, and saving for retirement. These insights reveal a strong demand for credit education, especially among younger generations looking to manage their financial futures. "Financial health is just as crucial as preparation and strategy in sports," said Jenelle Dito, Vice President of Consumer Empowerment Programs and Partnerships at FICO. "At FICO, we're excited to raise awareness about financial literacy and credit education, empowering volleyball fans and athletes to make more confident and informed financial decisions." The FICO® Score is used by 90% of top U.S. lenders. Lenders use FICO Scores to extend credit for personal loans, mortgages, auto loans, credit cards, and more, which is why it is so important for people to know their FICO Score and what is impacting it. FICO offers resources to help people kick-start their financial literacy and credit education journey. For example, myFICO lets consumers check and monitor their FICO® Score for free. Plus, FICO continually updates the website and app with credit education materials and tools designed to help people understand their credit. To check your FICO® Score for free, go to: To learn more information about FICO's credit education programs, FICO's Score A Better Future™ and FICO's Score A Better Future™ Fundamentals program, visit: ABOUT PRO VOLLEYBALL FEDERATION Pro Volleyball Federation is the leading professional volleyball league in the United States. PVF sets the standard for the sport, offering the largest number of franchises, unmatched attendance, extensive broadcast coverage and substantial championship prize money. It combines top-tier talent, including NCAA stars and international athletes, with cutting-edge production and technology to provide fans with an unmatched viewing experience. As a vital link between collegiate volleyball and the professional stage, PVF is dedicated to shaping the future of the sport and increasing visibility for its athletes. For more information, visit About FICO FICO (NYSE: FICO) powers decisions that help people and businesses around the world prosper. Founded in 1956, the company is a pioneer in the use of predictive analytics and data science to improve operational decisions. FICO holds more than 200 US and foreign patents on technologies that increase profitability, customer satisfaction and growth for businesses in financial services, insurance, telecommunications, health care, retail and many other industries. Using FICO solutions, businesses in more than 80 countries do everything from protecting four billion payment cards from fraud, to improving financial inclusion, to increasing supply chain resiliency. The FICO® Score, used by 90% of top US lenders, is the standard measure of consumer credit risk in the US and has been made available in over 40 other countries, improving risk management, credit access and transparency. Learn more at Join the conversation at & For FICO news and media resources, visit FICO and Score A Better Future are trademarks or registered trademarks of Fair Isaac Corporation in the U.S. and other countries. View source version on Contacts FICO Media Contact Julie Huangpress@ Pro Volleyball Federation Media Contact Rob Carollarob@ Sign in to access your portfolio
