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Does an 800 credit score actually give you a better mortgage interest rate?

The Mortgage Brothers Show

Does an 800 credit score actually give you a better mortgage interest rate?

In this post, we’re going to be discussing how your credit score actually impacts your mortgage interest rate.

Is an 800 credit score really an 800 credit score?

Well, yes, your score is your score, but your score can vary between the different bureaus. We’ve had clients where, when we pull their credit, they’ve got 800 from one of the bureaus but something lower from one of the other ones. The takeaway is that it’s important to remember that your credit score is not just the one score you might see on credit karma or your bank’s free credit monitoring report. As a mortgage lender, we look at the three different bureaus (Experian, Equifax and TransUnion) and we take the middle score. 

Do these numbers relate directly to mortgage scores?

Now, none of these numbers directly relate to mortgage scores. There are three types of scores: consumer scores, auto scores, and then mortgage scores. The calculations for mortgage scores tend to be a bit more conservative than consumer ones, but it’s relatively safe to assume that if your consumer score is great, your mortgage score will be as well.

What does an 800 score mean for what you can get?

Most banks will say anything over 740 or 760 is in the top tier. So, in those cases it doesn’t matter if you have a 740/760 or 850, you’re getting the same deal. 

What’s a solid credit score?

A score between 640 to 740 is a solid credit score. If you want to find out more of your options, shoot us an email at team@azmortgagebrothers.com. We’d be happy to answer any questions you might have.

What’s a credit score that’s difficult to work with? 

Anything below a 640 is going to be harder to work with. But that doesn’t mean your situation is hopeless, not at all. Give us a call at (602) 535-2171 and we’d be happy to help and share with you what your options are.

20-Point Tiers 

Essentially, every 20 points to your score brings you to a new tier. It’s hard to get anything if your score is below 620, but for every 20 points, you get bumped up to a new tier. This affects not only pricing but also loan availability. The higher your score the more loans available to you, jumbo loans, home equity lines of credit, asset depletion loans, you name it. 

If you have any questions about this or if you have any questions you’d like us to answer on our podcast, you can email your questions to team@azmortgagebrothers.com or give us a call at (602) 535-2171. Be sure to ask us for a free quote on your next mortgage. We’ll personally work with you and help you through the whole process.

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Thanks for listening and reading the Mortgage Brothers Show. Let us know if you have any questions you’d like us to answer on this podcast. You can email your questions to Tom@AZMortgageBrothers.com or Eddie@AZMortgageBrothers.com.

Be sure to ask us for a free quote on your next mortgage. We’ll personally work with you and help you through the whole process.

Signature Home Loans LLC does not provide tax, legal, or accounting advice. This material has been prepared for informational purposes only. You should consult your own tax, legal, and accounting advisors before engaging in any transaction. Signature Home Loans NMLS 1007154, NMLS #210917 and 1618695. Equal housing lender.

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