What credit score do you need for the lowest mortgage rates right now? Experts weigh in

 Mortgage rates have finally settled in. After a volatile end to 2025 — and an uncertain start to 2026 — mortgage rate fluctuations have started to mellow out. While minor changes have occurred, rates have sitting in the 6.5% range for 30-year fixed-rate mortgage loans for much of the last few months. 

That's not where most borrowers would like them to be, mind you. At 6.5%, borrowers are looking at much higher rates than they were just a few years ago, but that's to be expected with inflation, changes in the bond market and a lack of movement from the Federal Reserve keeping interest rates elevated overall.

Luckily, mortgage rates aren't set in stone, and it's still possible to snag a lower-than-average rate, especially if you have a great credit score. Just how high does your credit score need to be to do that, though? 

Find out how affordable the right mortgage loan could be now.

What credit score do you need for the lowest mortgage rates right now? Experts weigh in

You're probably going to need at least a 740 credit score to get the lowest mortgage rates, lending experts say. That's the start of the "very good" range, according to FICO, and is quite a bit higher than the 713 credit score the average borrower had last year. 

"The best mortgage rates usually go to borrowers with credit scores in the mid-700s or higher," says Darrin Seppinni, president of HomeLife Mortgage. "A 700 score is still strong, but pricing usually improves at 740, 760, and higher, depending on the loan program and down payment."

Here's a good example: According to mortgage technology provider Optimal Blue, the average rate on a 30-year conforming, conventional mortgage was 6.4% in early July for borrowers with a 740 credit score or higher. For borrowers with credit scores between 680 and 699, the average rate was 6.84%.

On a $300,000 loan balance, that's the difference between a $1,964 monthly payment and an $1,877 monthly payment. It also means over $31,000 more in interest costs over the course of the loan.

Credit score is only one part of the equation, though — and some loan programs don't have a hard-and-fast minimum credit score you need to meet. 

"My clients have been extremely excited ever since Fannie Mae and Freddie Mac removed their minimum FICO score requirement in November 2025," says James Perfilio, home loan specialist for Churchill Mortgage. "FICO scores have traditionally been one of the key points we consider when analyzing an application, and they could make or break the borrower getting approved for a loan. Now that the automated underwriting systems aren't as focused on the FICO score, we can look at their entire financial house more holistically."

This means lenders will look at other parts of your financial past, like how well you've kept up with other debts, whether you've paid your bills on time and what balances you've racked up on credit cards and other loans. 

"Past credit behavior is a proven method for predicting future behavior," says Kathy Herig, senior vice president of credit policy at LoanDepot. "If you demonstrate the ability to repay your debts, you become a lower risk for future default. If you have had some issues in the past but seem to be on track now, you may be viewed as more of a moderate risk. Lenders may still give you a loan, but they may price for that risk in case there is a later default. That typically results in a higher interest rate on the loan."

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You can improve your credit score faster than you think

Getting your credit score to the 740 mark might seem like a tall order, but credit scores can increase faster than you think, at least with the right money moves.

"The most effective short-term move is usually paying down credit card balances, because lenders look at how much of your available credit you are using," Seppinni says.

The goal should be to get your balances under 30% of your total available credit line. The lower you can get your debts, though, the better.

"If you can, consider paying off a couple of smaller debts in full," Herig says. "Paying a revolving debt in full can help boost your credit faster, and it also reduces your overall debt obligation, which may help you qualify for a mortgage."

You can also ask your lender to request what's called a "rapid rescore." If you've made positive changes to your credit, this can force credit bureaus to rescore you in just a few days rather than the full month or two it usually takes. 

The bottom line

If a higher credit score just isn't in the cards for you, there are other strategies you can use to lower your mortgage rate as well. Buying mortgage points, for one, can help you snag a better rate, as can choosing a shorter loan term or an adjustable-rate mortgage. You can also shop around for your lender.

"Consumers often don't compare rates and loan terms enough, which means they may pay more than they need to," Herig says. "Shop around with different lenders to make sure you are getting the best rate available with minimal fees."