I’m asked quite often what credit scores have to do with mortgage interest rates. Bottom line, a lot.
Where’s the Proof? You don’t have to look much further than this chart, which shows what kind of interest rates you could get – based on your credit score. The data is pulled by myFICO, a division of the Fair Isaac Corporation, with interest rates as of November 13, 2012.
FICO Score Mortgage Interest Rate
760-850 2.926 percent
700-759 3.148 percent
680-699 3.325 percent
660-679 3.539 percent
640-659 3.969 percent
620-639 4.515 percent
As you can see, a good credit score can definitely work in your favor. However, boosting your score can be a long term proposition, so it may take awhile before you can reap the benefits of an improved score.