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The higher your credit score, the lower the interest rate on the mortgage. Borrowers with high credit scores tend to get lower interest rates on mortgages than borrowers with low credit scores. A credit score of 740 or higher qualifies for the best interest rates from most lenders.
Take for example a borrower who has a credit rating of 760. With his score, he could acquire an interest rate of 5 percent on his $100,000 mortgage. Over the next 30 years, the borrower will accumulate over $95,000 in interest payments.hose with scores between 660 and 759 can still qualify for a decent loan rate, but anything below will result in interest rates that are at least two percentage points higher than the most creditworthy tranche. Those with the worst credit scores can expect to pay at least four percentage points higher in interest.