How Credit Score Affects Your Mortgage Rate
Maps every FICO tier to its rate adjustment on a conventional loan, shows the total dollar cost of a 100-point score gap over 30 years, and covers the fastest-acting actions to improve your score before applying.
What you'll learn
- How lenders use loan-level price adjustments (LLPAs) to price credit risk into your rate
- The dollar impact: a 680 vs 760 score on a $400,000 loan can mean $60,000+ in extra interest
- The credit utilization rate — keep revolving balances below 30% (ideally below 10%) before applying
- Why you should NOT close old credit accounts or open new ones in the 6 months before applying