Mortgage Rates for 660 Credit Score with 5% Down in Texas
Last Updated: April 2026 · Data: Optimal Blue OBMMI via Federal Reserve FRED API
2026 Market Benchmark
Source: Optimal Blue OBMMI via Federal Reserve (FRED) · 660–679 credit, 5% down, Texas
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See if your lender’s rate is fair for this exact profile →Monthly Payment Estimate (Principal & Interest)
| Loan Amount | At Benchmark (8.375%) | At +0.25% | Monthly Difference |
|---|---|---|---|
| $300,000 | $2,280 | $2,333 | +$53 |
| $400,000 | $3,040 | $3,111 | +$71 |
| $550,000 | $4,180 | $4,278 | +$97 |
Estimates are principal and interest only. Does not include taxes, insurance, or PMI.
Your Borrower Profile
Credit Score
660–679
Fair/limited credit — some lenders add a significant premium
Down Payment
5%
95% LTV · PMI required until 20% equity
State
Texas
One of the highest-volume mortgage markets in the US. Lender competition is strong, which typically benefits borrowers who shop multiple quotes.
What This Rate Means for You
A 660–679 credit score qualifies for conventional financing with a modest rate premium over top-tier borrowers. At 8.375%, a $400,000 loan costs $3,040/month in principal and interest. A 20–30 point score improvement before closing could reduce this rate.
With only 5% down, PMI will add significant cost until you reach 20% equity — often $150–400/month on a $400,000 loan. Factor this into your total monthly payment when comparing quotes.
Texas Housing Market Context
The median home price in Texas is approximately $330K, with a typical loan size around $314K for a 5% down buyer. Texas is one of the highest-volume mortgage markets in the country, with Dallas, Houston, Austin, and San Antonio all producing strong lender competition and typical loan sizes of $220,000–$440,000.
State-level variation in mortgage rates does exist — lender concentration, local competition, and property tax structures all influence the total cost of homeownership. However, the Optimal Blue OBMMI rate used here is a national benchmark. Your actual rate from a specific lender in Texas may be somewhat higher or lower depending on lender pricing, current market conditions, and your full application file.
What Drives This Rate
Credit Score: 660–679
Your 660–679 credit score qualifies for conventional financing, though lenders apply a meaningful rate adjustment. Improving your score before applying can reduce this premium.
Down Payment: 5%
A 5% down payment puts you at 95% LTV. PMI is required until your equity reaches 20%, adding to your effective monthly cost. Lenders price higher-LTV loans at a slight premium to offset the additional risk.
Market Conditions: 2026
The base rate (6.123%) reflects current 2026 market conditions for a prime borrower (760+ credit, 20% down). Rate adjustments above this base reflect standard Fannie Mae/Freddie Mac loan-level price adjustments (LLPAs) for credit score and LTV.
Frequently Asked Questions
What mortgage rate should I expect with a 660–679 credit score and 5% down in Texas?
Based on 2026 market data, the benchmark for a 660–679 credit score (Fair) with 5% down in Texas is 8.375% for a 30-year fixed conventional loan, derived from Optimal Blue OBMMI rate data. If a lender quotes significantly above this, shopping additional lenders is worthwhile.
Does a 660–679 credit score qualify for a conventional mortgage in Texas?
Yes. Conventional loan programs (Fannie Mae/Freddie Mac) require a minimum 620 credit score. A 660–679 score qualifies you for conventional financing. Lenders may vary in their exact pricing within this tier, and a higher score within the range may result in slightly better offers.
What credit score improvements would lower my rate from 660–679?
From 660–679, crossing into the next tier (typically 20–40 point improvement) reduces your rate by 0.125–0.25%. The fastest improvements come from paying down revolving balances below 30% utilization and disputing any errors on your credit report. Don't open new accounts in the months before applying.
Is a 5% down payment limiting my rate options?
Yes. At 5% down, your LTV is 95% — lenders price this risk into the rate. PMI adds to your monthly cost on top. If you can reach 10% down, you'll typically see a 0.125–0.25% rate improvement plus lower PMI costs. The combined monthly saving on a $400,000 loan is often $150–250.
How many lenders should I compare in Texas?
In Texas, mortgage competition is strong — dozens of lenders actively compete for borrowers. Rate spreads between lenders for the same profile frequently exceed 0.375%. Getting 3–4 Loan Estimates (not just pre-qualification quotes) is standard practice and takes less than a week. Each application within a 45-day window counts as one credit inquiry.
How to Know If Your Lender’s Rate Is Fair
The benchmark above is your reference point — it represents the market rate for your exact profile based on actual locked loan data from Optimal Blue. If a lender quotes you more than 0.25% above this benchmark, that gap warrants a second opinion. Lender pricing spreads for the same borrower profile routinely exceed 0.375%, which on a $400,000 loan represents over $75/month or $27,000 over the life of the loan.
FairRate compares your specific quoted rate against the OBMMI series benchmark for your credit score, down payment, and loan type — and gives you a clear verdict on whether to push back on your lender or accept the quote.
Rate Checker
Have a rate quote? See if it’s fair for this exact profile.
FairRate compares your quoted rate against the 2026 market benchmark for your exact credit score, down payment, and state — and tells you whether to push back on your lender.
See if your lender’s rate is fair for this exact profile →Rate data sourced from Optimal Blue OBMMI via Federal Reserve FRED API. Updated daily. This is a benchmark, not a quote.