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How much does my credit score affect my mortgage rate?

Answer

A lot — your credit score is one of the biggest levers on your mortgage rate, and small differences add up over 30 years. Lenders price loans in score tiers, often in roughly 20-point bands. Moving from the mid-600s to 740+ can lower your rate by anywhere from a quarter to a full percentage point or more, plus reduce or eliminate certain fees and PMI costs. On a $400,000 loan, even half a percent can mean tens of thousands of dollars in extra interest over the life of the loan. The best pricing usually kicks in around 740–760 and above. Before applying, check your reports, dispute errors, pay balances down to lower your utilization, and avoid opening new accounts. See how score changes move your rate at wealthserene.com/tools/mortgage-credit-impact.

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