Your credit score is the single biggest factor in your conventional rate. Here is exactly how each tier affects your monthly payment.
Rate: 5.750%. On $400K, payment is $2,334. PMI: 0.30% ($100/month). This is the gold standard. If you are at 740+, wait 2-3 months to push past 760 before applying.
Rate: 5.990%. Payment: $2,395. PMI: 0.40% ($133/month). Only $61/month more than 760+. Most lenders give great terms here.
Rate: 6.250%. Payment: $2,462. PMI: 0.65% ($217/month). At this tier, compare conventional vs FHA carefully. Valley West runs both scenarios free.
Conventional rates jump significantly below 680. At 620-660, FHA almost always wins on monthly payment. Full credit score guide →
