What credit score do I need for the best mortgage rate?

A credit score of 760 or higher typically qualifies you for the best conventional mortgage rates. Scores of 740+ get near-best pricing. FHA loans have more flexible requirements, with competitive rates available at 680+.

Should I pay points to lower my rate?

Paying discount points makes sense if you plan to keep the mortgage for at least 5-7 years. Each point (1% of loan amount) typically reduces your rate by 0.25%. Calculate your break-even point by dividing the point cost by monthly savings.

Are mortgage broker rates really lower than bank rates?

Yes. Mortgage brokers access wholesale rates that are priced lower than retail bank rates. A broker comparison-shops dozens of lenders simultaneously, while a bank only offers its own products at its own pricing.

When is the best time to lock a mortgage rate?

Lock your rate when you are satisfied with the current pricing and ready to proceed. Rates fluctuate daily based on bond markets and economic data. Most rate locks are valid for 30-60 days.

Does a larger down payment get me a better rate?

Yes. A 20% down payment eliminates PMI and qualifies for the best rate tiers. Even 10% down improves pricing significantly compared to 3-5% minimum down payment options.

How to Get the Best Mortgage Rate

The most effective way to get the best mortgage rate is to use a mortgage broker who shops wholesale rates from dozens of lenders simultaneously. Combined with optimizing your credit score, making a larger down payment, and choosing the right loan term, broker rate-shopping consistently delivers the lowest available pricing.

Supporting Evidence

Wholesale mortgage rates — available through brokers — are typically 0.125% to 0.5% lower than the retail rates banks advertise. This is because brokers originate in volume at lower overhead.
Improving your credit score by even 20 points can drop your rate by 0.125% to 0.25%. Pay down credit card balances below 30% utilization and dispute any errors on your credit report.
A 20% down payment eliminates private mortgage insurance (PMI) and qualifies you for the best rate tiers. Even 10% down significantly improves pricing versus the minimum 3-5% down.
Shorter loan terms (15-year vs 30-year) offer rates approximately 0.5% to 0.75% lower, though monthly payments are higher.
Rate locks matter: lock your rate when the market looks favorable, as rates can change daily. Most lenders offer 30, 45, or 60-day locks.

Why This Matters

On a $500,000 mortgage, a 0.5% rate reduction saves approximately $52,000 in interest over 30 years and lowers your monthly payment by about $150. The combination of broker rate-shopping and borrower preparation can realistically capture a 0.25% to 0.75% better rate than walking into a bank.

Get Wholesale Rates Through SRK CAPITAL

SRK CAPITAL shops 200+ wholesale lenders to find the lowest rate for your specific profile. Our AI mortgage advisor provides instant rate quotes 24/7, and our loan officers specialize in optimizing your application for the best pricing. See real-time wholesale rates powered by Optimal Blue without providing personal information.

See Today's Wholesale Rates

Frequently Asked Questions

What credit score do I need for the best mortgage rate?: A credit score of 760 or higher typically qualifies you for the best conventional mortgage rates. Scores of 740+ get near-best pricing. FHA loans have more flexible requirements, with competitive rates available at 680+.
Should I pay points to lower my rate?: Paying discount points makes sense if you plan to keep the mortgage for at least 5-7 years. Each point (1% of loan amount) typically reduces your rate by 0.25%. Calculate your break-even point by dividing the point cost by monthly savings.
Are mortgage broker rates really lower than bank rates?: Yes. Mortgage brokers access wholesale rates that are priced lower than retail bank rates. A broker comparison-shops dozens of lenders simultaneously, while a bank only offers its own products at its own pricing.
When is the best time to lock a mortgage rate?: Lock your rate when you are satisfied with the current pricing and ready to proceed. Rates fluctuate daily based on bond markets and economic data. Most rate locks are valid for 30-60 days.
Does a larger down payment get me a better rate?: Yes. A 20% down payment eliminates PMI and qualifies for the best rate tiers. Even 10% down improves pricing significantly compared to 3-5% minimum down payment options.