I am refinancing my home and have been approved for the loan, I'm just
waiting to lock in the rate.  Like many people, I'm targeting the
elusive 6%, but the best quote I can get is 6.25% on a 30 year fixed
rate mortgage.

What is the relationship between FICO scores and interest rates?  I'm
assuming that the best interest rates are going to the highest FICO
score and the worst rates to the lowest score.

The reason for the question is that it may be futile to hold out for a
lower rate if my FICO score won't support it.

Hello spencercat,

FICO is an acronym for the company that created the score, Fair, Isaac
and Company.  See, for example:

"Credit Evaluator FICO: 'A Fairly Successful Bunch of Propeller
Heads'", by Jim Kerstetter (June 24, 2002)
Business Week
http://www.businessweek.com/magazine/content/02_25/b3788720.htm

The Business Week article notes that Fair, Isaac has established a web
site, myFICO.com, that provides information about FICO scores.  As
Fair, Isaac explains in a press release, the site allows consumers to
learn (among other things) "what residential mortgage and auto loan
interest rates are being offered by lenders in their state based on
their FICOŽ credit risk score ...."

"Press Release: Consumers Now Can Know What Loan Rate Offers to Expect
Based on Their FICO Credit Score at MyFICO.com" (March 6, 2002)
Fair, Isaac and Company
http://www.fairisaac.com/page.cfm/section=section_cat/id=180/id2=180/id1=50/layout=layout1.cfm/press_id=281

The information provided by myFICO.com is listed as current as of
today's date.  In addition to other rates, it lists the interest rates
for 30-year fixed mortgages (as well as 30-year jumbo fixed
mortgages).  Both national and state averages for ranges of FICO
scores are provided.  (The terms "30-year fixed mortgage" and "30-year
fixed jumbo", as well as other terms, are defined on a separate page.)

"How do interest rates relate to your score?"
myFICO.com
http://www.myfico.com/myfico/CreditCentral/LoanRates.asp

"About These Rates: Definitions"
myFICO.com
http://www.myfico.com/myfico/CreditCentral/AboutLoanRates.asp#Definitions

If you wish to improve your FICO score, you may be interested in
luciaphile-ga's very thorough answer on techniques for doing so.

"Q: Ways to speed up credit recovery"
Google Answers
https://answers.google.com/answers/main?cmd=threadview&id=118257

I hope that this information is helpful.

- justaskscott-ga


Search terms used on Google:

fico "interest rate"
fico "interest rates"
fico "fair isaac"

[In addition to searching on Google, I browsed myFICO.com.]