Want the Best Mortgage Rate? Let’s Talk Credit Scores!
We all want the lowest rate possible, right? 🏡 But have you ever wondered what really determines that rate when applying for a loan? Is it your income? Your down payment? The term of the loan? 🤔
Those things matter, but the biggest factor is your credit score.
Your credit score tells lenders how much risk you represent. The higher your score, the lower your risk… and the better your rate. 📈
Here’s how it works 👇
Most loans are sold to major agencies like Fannie Mae, Freddie Mac, or Ginnie Mae and about 90% of all mortgages go through these channels. Each loan carries something called a Loan Level Price Adjustment (LLPA), which adds cost based on your credit score and loan type.
A quick example:
💰 On a $400,000 loan…
➡️ With a 680 score, your fee might be 1.75% ($7,000)
➡️ With a 720 score, it drops to 1.25% ($5,000)
That difference could mean a rate change from 5.75% to 5.99%! 😳
So yes, your credit score matters a lot.
Here’s how to keep it strong:
✅ Pay on time – payment history is 35% of your score
✅ Keep balances low – try to stay under 40–50% of your limit
✅ Don’t open too many new accounts at once
✅ Keep older accounts active to show long credit history
✅ Mix it up – mortgages, installment, and revolving credit all count
Even small improvements can make a big difference when it comes to your interest rate or monthly payment.
If you’ve been thinking about buying a home 🏠 or refinancing to lower your payment 💵, improving your credit could be the smartest move you make this year.
Let’s review your situation together, I’ll help you find the most affordable, strategic way to make homeownership work for you. 🙌
With gratitude,
Kurt Rogers
Managing Broker | Affordable Interest Mortgage
www.aimortgage.net
(720) 895-0500
NMLS #217147 | IMB #2191655 | Equal Opportunity Lender | Regulated by the Division of Real Estate
