Does Having A High Credit Score Decrease My Mortgage Rate?

By Ann White

Does having a high credit score decrease my mortgage rate? The answer may surprise you, a high credit score alone won’t get you a low mortgage rate.

“Does having a high credit score decrease my mortgage rate?” A lot of homeowners who have better credit now than when they originally financed their houses. The answer is more complicated than a simple “Yes” or “No”. While having a high credit score definitely does improve the chances of a borrower getting an improved interest rate with their mortgage, it is not the only factor considered. Many other factors are weighed, some more important and some less. While having a high credit score is almost always a good thing, it’s not the be all and end all.

I just switched jobs, does having a high credit score decrease my mortgage rate?

While having a high credit score will never hurt the chances of a borrower securing a lower interest rate on their mortgage, job history is one of the most heavily weighted factors when a lender determines a mortgage rate. If a borrower is considering financing a new property or trying to reduce the mortgage rate on their current loan it would be wise to wait for a year or two so that job history works in the borrowers favor.

If I’ve got a stable job history and a higher credit score now than when I applied for my home loan does having a high credit score decrease my mortgage rate?

With a stable job history, a stable lending history, and a high credit score a borrower is almost certain to lower the interest rate on their mortgage rate. A high credit score helps to reassure the lender the borrower will not default on the home loan. The borrowers high credit score does this by proving that the borrower has a stable history of payments and is not overextended on their credit.

Does Having A High Credit Score Decrease My Mortgage Rate?

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