Will my rate improve if I get from 620 to 640?

Yes — going from 620 to 640 typically saves 0.25–0.50% in effective rate through lower LLPAs on conventional loans. Going from 620 to 660 saves roughly 0.50–0.75%. Each 20-point bracket reduces LLPAs on conventional loans, so score improvement has compounding value.

Refinance With a 620 Credit Score

Q: Can I refinance with a 620 credit score?

Yes. A 620 score is the minimum for conventional (Fannie Mae/Freddie Mac) refinancing. You can also use FHA at 620, and VA loans are often available to veterans at 620 through most lenders. USDA also accepts 640+.

Q: How much do LLPAs cost at 620?

LLPAs (Loan-Level Price Adjustments) are credit-score fees added to conventional loans. At 620 with 80% LTV (20% equity), the LLPA is typically 1.75% of the loan amount — on a $300,000 loan that is $5,250, usually rolled into your rate as approximately 0.25–0.375% higher interest.

Q: Should I use FHA or conventional at 620?

FHA is often better at 620 if you have less than 20% equity, because FHA MIP (0.55% annual) is cheaper than conventional PMI plus LLPAs at this credit level. But if you have 20%+ equity, conventional avoids mortgage insurance entirely, making it the better choice despite LLPAs.

Q: What is the fastest way to get from 620 to 660?

Pay down revolving balances to under 10% utilization (highest single-session impact), dispute any incorrect negative items from AnnualCreditReport.com, become an authorized user on a family member's old, clean account, and make every payment on time for 3–6 months. Most borrowers in this range can gain 30–50 points within 60–90 days.

Your Options at 620

          620 is the minimum for conventional refinancing. You can use Fannie Mae or Freddie Mac programs at 620, but you will pay Loan-Level Price Adjustments (LLPAs) — credit score fees that raise your effective rate. FHA at 620 is often cheaper if you have less than 20% equity.
        

Loan Type	Min Score	Key Consideration
Conventional (Fannie/Freddie)	620	LLPAs add ~0.25–0.50% effective rate; no MIP if 20%+ equity
FHA Rate & Term	580	MIP required; no LLPAs; often better under 20% equity
FHA Streamline	580 (lender)	Existing FHA loans only; no appraisal required
VA IRRRL	620 (most lenders)	Veterans only; typically lowest overall cost
USDA Streamline	640	Rural properties; not available at 620

For a broader view of credit score thresholds and which options open at each level, see our bad-credit refinance guide.

Understanding LLPAs at 620

LLPAs (Loan-Level Price Adjustments) are fees Fannie Mae and Freddie Mac charge lenders based on credit score and LTV. Lenders pass them through as higher rates. A 620 borrower with 80% LTV (20% equity) pays roughly 1.75% of the loan amount in LLPAs — on $300,000 that is $5,250, which typically translates to about 0.25–0.375% higher interest rate.

LLPA Cost by Credit Score (80% LTV, illustrative)

Credit Score	LLPA (%)	Cost on $300K	Rate Impact
620–639	1.75%	$5,250	+0.375%
640–659	1.50%	$4,500	+0.25–0.375%
660–679	1.00%	$3,000	+0.125–0.25%
680–699	0.50%	$1,500	+0.125%
700+	0–0.25%	$0–$750	Minimal

Each 20-point improvement in your credit score reduces LLPAs by 0.25–0.50%. Getting from 620 to 660 saves roughly $1,500–$2,250 in fees on a $300,000 loan. Use the Break-Even Calculator to see if waiting to improve your score before refinancing makes sense.

FHA vs. Conventional at 620: Which Is Better?

The answer depends on your equity position:

Under 20% equity: FHA is usually cheaper. FHA MIP at 0.55% annually beats conventional PMI + LLPAs at the 620 score level. The FHA rate itself will also often be lower because FHA pricing doesn't use LLPAs.
20%+ equity: Conventional wins because you can eliminate mortgage insurance entirely. Despite LLPAs, no PMI at 20% equity makes conventional the better long-term deal.
Existing FHA loan: FHA Streamline is almost always the fastest and cheapest path — no appraisal, no full income documentation, and the same MIP structure you already have.

Use the FHA Refinance Calculator to compare your MIP costs, then model the conventional alternative against it.

Improving From 620 Toward 660+

Every 20-point improvement above 620 saves real money on conventional loans. These steps have the fastest impact:

Lower utilization first — Get every card below 30%, then target under 10%. This is the fastest scoring lever.
Dispute errors — Check AnnualCreditReport.com for incorrect late payments or accounts that aren't yours. Disputes can resolve in 30 days.
Authorized user strategy — Ask a family member to add you to an old account with a perfect payment history. Their history gets blended into your score.
No new credit — Avoid applications for 90+ days before your refinance to prevent inquiry drops.

Getting from 620 to 660 typically takes 60–90 days with focused effort and saves significantly on LLPAs. Getting to 700 reduces conventional pricing to near-par.

Frequently Asked Questions

Can I refinance with a 620 credit score?

Yes. 620 is the conventional minimum. FHA is also available (min 580), and VA loans typically accept 620 through most lenders. You will pay LLPAs on conventional loans that reduce as your score improves.

How much do LLPAs cost at 620?

At 620 with 80% LTV, LLPAs are about 1.75% of the loan amount — roughly $5,250 on $300,000. Lenders typically translate this into a 0.25–0.375% higher interest rate rather than an upfront fee.

Should I use FHA or conventional at 620?

FHA if you have under 20% equity — FHA MIP is usually cheaper than conventional PMI + LLPAs at 620. Conventional if you have 20%+ equity — no mortgage insurance makes it the clear winner despite LLPAs.

Will my rate improve from 620 to 640?

Yes — going from 620 to 640 reduces conventional LLPAs by 0.25%, saving roughly $750 on $300,000. Going 620 to 660 saves about $2,250 in LLPAs. Each 20-point bracket above 620 improves conventional pricing.

What is the fastest way to get from 620 to 660?

Pay credit card balances below 10% utilization, dispute errors on your credit report, and make every payment on time. Focused effort typically yields 30–50 points in 60–90 days for borrowers in this range.

Can You Refinance With a 620 Credit Score?

Your Options at 620

Understanding LLPAs at 620

LLPA Cost by Credit Score (80% LTV, illustrative)

FHA vs. Conventional at 620: Which Is Better?

Improving From 620 Toward 660+

Frequently Asked Questions

Compare FHA vs. Conventional at Your Credit Score

Sources & References