How this calculator works
Each credit tier adds a typical spread to the best-tier rate. The calculator works out the payment at every tier and the extra you'd pay over the loan's life compared with a 760+ score. Spreads are illustrative; lenders price loans individually.
Worked example
With the example values below: Your estimated rate, 6.350% ($1,991.15 a month). Change any number above to run your own.
What you enter
| Input | Example |
|---|---|
| Loan amount | $320,000 |
| Best-tier rate (760+) | 6.1% |
| Loan term | 30 years |
| Your score | 700–739 |
Why credit score changes your rate
Lenders price mortgages by risk. On conventional loans, Fannie Mae and Freddie Mac charge loan-level price adjustments (LLPAs) based on your credit score and loan-to-value ratio. Lenders pass these on as a higher rate or higher fees, so a lower score costs more even when everything else is the same.
The biggest jumps usually come below about 680, and the best pricing typically starts around 760 or 780. This calculator shows the payment and lifetime cost at each tier against the best one. The spreads are illustrative; your actual quote depends on the lender and your full application.
Minimum scores by loan type
| Loan type | Typical minimum score |
|---|---|
| Conventional | 620 |
| FHA (3.5% down) | 580 |
| FHA (10% down) | 500 |
| VA | No VA minimum; lenders often 580–620 |
| USDA | Lenders often 640 |
| Jumbo | 700 to 740 |
How to raise your score before applying
Utilization changes show up within a month or two, so paying down cards is often the fastest way to move up a tier.
- Pay credit cards down to under 30% of their limits, ideally under 10%, and pay before the statement closes.
- Pay every bill on time; one 30-day late payment can drop a score significantly.
- Don't open or close accounts in the months before applying.
- Check all three credit reports at AnnualCreditReport.com and dispute errors.
- Ask your lender about a rapid rescore if you've just paid down balances.
When to wait and when to buy
If you're a few points below a tier boundary, waiting a month or two to pay down cards can save thousands. If your score needs a year or more of repair, an FHA loan may cost less now, and you can refinance later once your score improves. The mortgage calculator shows the full payment at whatever rate you're quoted.
Frequently asked questions
What credit score do I need to get the best mortgage rate?
Usually 760 or higher, and sometimes 780 or higher, depending on the lender and your loan-to-value ratio. Above that, a higher score rarely improves pricing further.
How much does credit score affect mortgage rates?
Borrowers in the lowest conventional tiers can pay a rate around 0.5 to 1.5 percentage points higher than top-tier borrowers. On a $300,000 30-year loan, each half point costs roughly $100 a month.
What is the minimum credit score for a mortgage?
Conventional loans usually require 620. FHA allows 580 with 3.5% down and 500 with 10% down. VA and USDA have no official minimum, but most lenders set one around 580 to 640.
Do mortgage lenders use FICO scores?
Yes. Most use older FICO versions from all three credit bureaus and take the middle score. Federal regulators have approved newer models, so this may change over time.
How quickly can I raise my credit score?
Paying down credit card balances can raise a score within one or two billing cycles. Removing errors can take about 30 days. Recovering from late payments or collections takes much longer.
Grow what this calculator projects.
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Estimates for planning only, not financial, tax or legal advice. Tax tools use 2026 federal figures (brackets, $16,100 / $32,200 standard deduction, $19,000 gift exclusion, $15M lifetime exemption). Rates shown as defaults are examples; replace them with quotes you actually receive.