Mortgage rates have remained stubbornly high over the last few years. Still, you can you can lower the mortgage rate a lender offers you by as much as almost three-fourths of a percentage point by increasing your credit score. In the best-case scenario, that could save you over $51,000 in interest over the life of a $300,000 home loan and reduce your monthly payment by just over $140. (Based on the interest rate difference from the lowest to the highest credit tier on a loan with 20% down and one discount point, which we’ll dive into below.)
Learn more: The minimum credit score needed to buy a house
Here are sample average national mortgage annual percentage rates (APRs) by credit score tier as of September 2025, as compiled by Curinos, a data and analytics company, for myFICO.com. We have rounded the APR to the nearest hundredth.
Your credit score is a major component in determining your mortgage rate, but factors such as your debt levels and down payment size also play a role.
The table below shows the representative credit score tiers with sample monthly mortgage payments and the total interest paid over a 30-year term, using the same loan parameters as above.
Read more: Can you get a mortgage with bad credit? Here’s what you need to know.
In addition to your credit score, mortgage lenders will consider such factors as:
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Your debt-to-income ratio. The DTI ratio is calculated by dividing your total monthly debt by your monthly income before taxes and deductions.
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The loan-to-value ratio of your mortgage. LTV ratio is the amount of your mortgage compared to the market value of the home. It is primarily a function of your down payment.
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Your down payment amount. The more money you put down, the lower your LTV ratio. That gives a lender more pledged collateral to work with. The more security a lender has, the better your mortgage rate may be.
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The length of your loan. Called the “loan term,” the repayment period can certainly impact your mortgage rate. A 15-year fixed mortgage loan has a lower rate than a 30-year fixed-rate mortgage.
Dig deeper: How to choose between a 15-year and 30-year mortgage term
The most common mortgage is a conventional loan. Lenders issue conventional loans based on qualifications set by government-backed companies Fannie Mae and Freddie Mac. The mortgage rates you see above are for conventional loans.
However, there are other loans that are backed by government agencies, such as:
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USDA loans for suburban and rural mortgages
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FHA loans, often used by first-time home buyers of modest financial means.
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VA loans, issued to borrowers with military connections.
Of all these loan types, VA loans often have the lowest mortgage rates.
Keep reading: The best VA mortgage lenders right now
As of September 3, 2025, a FICO 800 credit score will earn you a 6.74% APR on a 30-year fixed mortgage rate. This is based on a national average, and your home loan rate could be higher or lower, depending on your down payment, the property’s location, and your credit profile.
With an FHA loan, you may qualify to buy a $250,000 house with a credit score as low as 500, with 10% down. A conventional loan will likely provide a lower mortgage rate, but you’ll need a 620 FICO score to be eligible.
Historically low mortgage rates of 3% and below resulted from aggressive interest rate cuts by the Federal Reserve in reaction to the COVID pandemic. For rates to sink that low again would take an equally serious threat to the nation’s economy.
A good mortgage rate would be in the 7.21% range or lower. That’s the median rate based on the current mortgage rates by credit score shown above. Freddie Mac reports that the average 30-year mortgage rate is 6.72% as of July 31, 2025. However, that rate may include fees and discount points.
Laura Grace Tarpley edited this article.