Your credit score and mortgage rate are more connected than you might think. Lenders use your credit score to decide how risky you are, which directly impacts the interest rate on your home loan.
The bottom line is that borrowers with higher credit scores typically qualify for lower mortgage rates, while those with lower scores often face higher rates and monthly payments.
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If you’re planning to buy soon, understanding all of this can potentially help you lock in a better deal. Here’s a breakdown of the average mortgage rates by credit score so you know what to expect, and what steps you can take to improve your score before applying for a home loan.
Mortgage Loan Interest Rates by Credit Score
As of May 2026, the average mortgage loan rates were 6.58% for a 30-year fixed-rate mortgage and 5.83% for a 15-year fixed-rate mortgage. However, your actual rate will depend on your credit score. Here’s a look at the average mortgage rate by credit score, as reported by Experian using Curinos data.
|
Credit Score |
APR (30-Year Conventional) |
APR (15-Year Conventional) |
|
760 to 850 |
6.51% to 6.42% |
5.82% |
|
700 to 759 |
6.76% to 6.58% |
5.84% to 5.82% |
|
680 to 699 |
6.87% |
5.% |
|
660 to 679 |
6.94% |
5.85% |
|
640 to 659 |
7.06% |
5.85% |
|
620 to 639 |
7.21% |
5.86% |
Why Credit Score Affects Mortgage Rate
Mortgage lenders use your credit score as one of the factors when determining what rate you will receive.
“Your credit score plays a critical role in determining your mortgage rate because it is viewed as an indicator of risk and how you manage debt,” said Darren Tooley, senior loan officer at Cornerstone Financial Services in Southfield, Michigan.
“With conventional loans and most other programs, the credit score can impact the rate and fees by as much as several percentage points,” he said. “Higher credit scores typically result in lower interest rates because they signal a stronger likelihood of on-time repayment. In comparison, lower credit scores may lead to higher rates or even denial, as lenders view these scores as higher risk.”
The exception to this rule is if you qualify to receive a mortgage through one of the available government programs.
“With certain government programs like [Federal Housing Administration] (FHA) and [Department of Veterans Affairs] (VA) loans, as long as your credit score is average or above, the score may have little or no impact on your interest rate,” Tooley said.
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Other Factors Affecting Mortgage Rate
While your credit score greatly impacts your mortgage rate, there are other factors lenders take into account when determining your loan terms.
“These include your loan-to-value or down payment, loan term, loan type and even your debt-to-income for specific programs or when determining private mortgage insurance,” Tooley said.
“Many programs offer a slightly better interest rate for shorter terms,” he continued. “For example, a 15-year term will offer a better interest rate than a 30-year term. Also, as a general rule, the larger the down payment, the lower the interest rate. However, there are some exceptions where putting the minimum down payment may offer a slightly lower interest rate, which is designed to help make things more affordable, especially for first-time buyers.”
How To Secure Favorable Mortgage Rate With Lower Credit Score
According to Experian, many lenders require a credit score of 580 or higher to receive a mortgage loan. However, you typically need a score of 760 or higher to qualify for the best rate. If you don’t meet this threshold, there are moves you should make to get a competitive rate.
“Start by paying down high-interest debt and correcting any credit report errors, which can help boost your credit scores,” Tooley said. “If paying down debt isn’t an option, consider applying for an FHA loan or checking if you are eligible for other government programs like a VA loan or [U.S. Department of Agriculture] (USDA) loan, which allow more lenient credit requirements. Lastly, work with a trusted lender and loan officer who can work with you on your credit while determining that they are looking into the best programs to suit your needs.”
Caitlyn Moorhead contributed to the reporting for this article.
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