Matthew McGuire · September 2, 2026

What your credit score tells lenders

Mortgage Market Update

Matthew McGuire

Matthew McGuire

Wednesday, September 2, 2026

What your credit score tells lenders

Hi there. This week I want to cover something that often surprises borrowers—how closely your credit connects to the mortgage terms you'll qualify for.

National Mortgage Rates · August 27, 2026

30-Year Fixed

6.66%

FHA 30-Year

6.55%

VA 30-Year

6.38%

Rate trend

Source: Freddie Mac PMMS & Optimal Blue via FRED

Rates shown are national averages and are provided for informational purposes only. Actual rates vary based on credit profile, loan amount, and market conditions. Please contact us for a personalized rate quote.


Credit & Borrowing

Your credit score and your mortgage rate

I talk to borrowers all the time who don't realize how much their credit score influences the interest rate they'll pay. The better your credit profile, the more favorable terms lenders can offer you—which adds up to real savings over the life of your loan. Whether you're applying for a mortgage, thinking about refinancing, or just want to understand where you stand, knowing your credit health is step one. Small moves now—like paying bills on time or managing your credit utilization—can make a meaningful difference down the road. I'd love to walk you through what lenders see and what you can do to put yourself in the strongest position possible.

Let's talk about your credit and what it means for your next mortgage move.

Tip of the Week

Your mortgage interest may be tax-deductible if you itemize. Check with your tax professional to see if it benefits you.

Tips for Homeowners

Understanding Mortgage Points

1.

One mortgage point equals 1% of your loan amount. Paying points ("buying down the rate") reduces your interest rate — typically 0.25% per point, though this varies by lender and market.

2.

Calculate your break-even: divide the cost of the points by your monthly savings. If it takes 4 years to break even and you plan to stay 10 years, buying points makes sense.

3.

Points paid on a home purchase are generally tax-deductible in the year paid (if you itemize). Points on a refinance must be deducted over the life of the loan.

Have questions about how any of this affects your mortgage or home purchase? We're here to help — reach out to the Matthew McGuire team any time and we'll walk you through your options.

Your Mortgage Advisor

M

Matthew McGuire

Matthew McGuire

matt@kotimortgage.com

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