Credit Score Tiers: What Rate You'll Get for Each

Mortgage lenders use a risk-based pricing model. The better your credit, the better your rate — but it's not a straight line. There are tiers.

The main tiers (30-year fixed, mid-2026):

• 760+: Best pricing. You get the lowest rates available.
• 740-759: Almost the best. Maybe 0.125% higher.
• 720-739: Good. About 0.25-0.375% higher than top tier.
• 700-719: Fair. About 0.5% higher.
• 680-699: Higher pricing. Maybe 0.75-1% higher.
• 660-679: Starts getting expensive. 1-1.5% higher.
• 620-659: The bottom tier. Significantly higher rates.

What that means in dollars

On a $350,000 loan:

• 760+ at 6.25%: $2,155/month
• 700 at 6.75%: $2,271/month (+$116/mo, +$41,760 over 30 years)
• 660 at 7.25%: $2,387/month (+$232/mo, +$83,520 over 30 years)

That's an $83k difference between the top and bottom tiers. For the same house.

Points can help

If you're in a lower tier and can't improve your score, buying discount points can lower your rate. One point (1% of the loan) typically reduces your rate by 0.25%. On a $350k loan, that's $3,500 to save ~$40/month.

Bottom line: A 740+ score is worth tens of thousands of dollars. If you're close, spend the time to get there before you start shopping.