Mortgage rates climbed again. As of mid-September, the 30-year fixed averaged nearly 6.8%, up from 6.35% a year ago, according to Freddie Mac.
So here’s a question worth asking your loan officer, out loud, before you sign anything:
“Are you pulling my VantageScore?”
Most lenders aren’t. And for roughly one in four buyers, that silence costs real money.
What changed this month
For decades, Fannie Mae and Freddie Mac judged your creditworthiness one way: Classic FICO. One company, one number, no competition.
That’s over.
On Sept. 4, Federal Housing Finance Agency Director Bill Pulte ordered Fannie and Freddie to approve all lenders to use VantageScore 4.0, ending a four-month pilot that had been capped at 50 lenders. Fannie made it official on Sept. 9 in Lender Letter LL-2026-06.
Translation: Your lender can now choose Classic FICO or VantageScore 4.0, loan by loan — and pick whichever prices better for you.
Why a second score can move your rate
Fannie and Freddie charge lenders upfront fees based on risk. They’re called loan-level price adjustments, and your credit score bracket is one of the biggest inputs. Lenders pass those fees to you, usually baked into the rate.
Fannie’s updated Loan-Level Price Adjustment Matrix now prices VantageScore loans on their own grid. So the same borrower can land in two different fee buckets depending on which score gets pulled.
That’s the whole game.
The Wall Street Journal, citing an estimate from JPMorgan Chase managing director Nick Maciunas, reports that when a lender runs both models, about one in four buyers ends up in a higher score bracket. Saving 1% in upfront fees works out to roughly a quarter-point on the rate.
A quarter-point sounds like rounding error. Run the numbers and it isn’t.
On a $400,000 loan, 6.76% costs you about $2,597 a month. At 6.51%, it’s about $2,531. That’s $66 a month — and close to $23,800 over 30 years.
Quick heads-up — companies spend billions figuring out how to separate you from your money. I’ve spent my career exposing those tricks. Sign up for the free Money Talks Newsletter and keep more of what you earn. 10 seconds, no spam, ever.
What to say
Keep it simple and specific. Vague questions get vague answers.
- Ask which model they’re using. “Are you underwriting me on Classic FICO or VantageScore 4.0?” If they say FICO only, keep going.
- Ask them to run both. Under Fannie’s rules, a lender choosing VantageScore has to order it from all three bureaus. That’s a request they can honor, not a favor.
- Ask for both prices. You want the rate and the upfront fees under each model, side by side. Not a summary — the actual numbers.
- Shop it. Some lenders haven’t finished wiring VantageScore into their systems yet. Another one down the street has.
Before any of this, know your own numbers. You can get your VantageScore free from a dozen sources, and it costs you nothing to check.
When this won’t help
If your Classic FICO is already excellent, a second score has nowhere to take you. You’re in the top bracket, and the fees are as low as they get.
The people who gain are the ones sitting just under a cutoff. VantageScore 4.0 weighs credit histories differently, so a thin file or an old paid collection can score better under one model than the other.
If you’re close to a bracket line, it’s also worth spending a month on the fastest ways to move your score before you apply.
And remember your score bounces around by design. If you’re watching it swing week to week, don’t panic — just check both models before you apply.
The bottom line
This isn’t a loophole. It’s a rule change that took effect this month, and the lender gets to choose the model that prices you best.
But they won’t do it unless you ask. Lenders default to habit, and habit is FICO.
It’s the same principle behind every bill you’ve ever talked down: the discount exists, but you have to ask for it.
Ask the question. It takes 10 seconds, and it might be the best-paid 10 seconds of your home search.
Add a Comment