Today’s lowest mortgage interest rates are around 4.9% for well-qualified borrowers. If you are searching for a bad credit score home loan rate then you will likely find that subprime borrowers receive a much higher interest rate than the rates you see advertised on television and the Internet. Do not be surprised to see a mortgage interest rate several percentage points higher due to a low credit score.


If you find that your credit score has dropped well below 650 and you have missed bill payments in the recent past you are going to find it nearly impossible to qualify for an interest rate under 7%. In fact, there’s a very strong possibility that your interest rate will be much higher than this based on your overall credit score and credit history.

Before making any final decisions when it comes to locking in to a mortgage interest rate it would be wise to do research on your current financial situation. If you have the ability to improve your credit score by paying down high interest rate debts that it would be wise to do so before going through the mortgage application process.

Author: Jeremy North