Can I Refinance with a 720 Credit Score? Premium Rate Options

A 720 credit score puts you into one of the strongest pricing tiers available for mortgage refinancing, depending on your overall borrower profile. While a 700 credit score is considered “good,” the jump from 700 to 720 moves you into a premium credit category — which may unlock access to sharply lower interest rates, reduced lender fees, improved PMI pricing, and broader loan program eligibility.

The truth is simple:

At 720, you may qualify for competitive refinance rates in 2026.

You’re not yet at the absolute top tier (740+), but you’re close enough that most lenders may compete aggressively for your business.

This guide explains what refinancing looks like with a 720 credit score, which loan types you qualify for, what rates you can expect, how close you are to “elite” pricing, and how to use the Fincast platform to ensure you’re getting the premium pricing your score deserves.

Key Takeaways

• A 720 credit score may qualify you for premium refinance rates and lower fees

• You’re one step below the top-tier 740+ bucket, where the lowest rates exist for borrowers whose profile meets lender requirements

• Nearly all refinance options — including jumbo loans — become more accessible at 720

• PMI costs drop significantly at 720 versus mid-600s or low-700s

• Lenders may compete aggressively for 720 borrowers, but pricing differences can still be thousands of dollars

💡 Pro Tip: Because lender pricing can vary widely even for identical situations, it’s important to get multiple offers. Upload your Loan Estimate in 60 seconds to see how lenders price your 720 score.

Can You Refinance with a 720 Credit Score?

Yes (depending on your borrower profile) — and often at highly competitive pricing.

A 720 score may qualify you for:

• Conventional rate-and-term refinances

• FHA rate-and-term and Streamline refinances

• FHA cash-out

• VA IRRRL and VA cash-out

• Jumbo refinances (much easier than at 700)

• Investment property and multi-unit refinances with improved pricing

At 720, you’re in a premium credit tier that many lenders strongly prefer.

Loan Programs Available at 720 Credit Score

Here’s how each refinance option treats a borrower with a 720 credit score.

Conventional Refinance Options with a 720 Credit Score

Conventional refinances reward a 720 score with strong pricing — much closer to 740+ tiers than to mid-600 pricing.

Conventional Rate-and-Term Refinance

Rate-and-term refinances are the least risky for lenders, putting borrowers with 720 credit scores in a good position.

Conventional Cash-Out Refinance

Because cash-out refinances are riskier for lenders, they often require credit scores of 660–680+. At 720, you are in a good position, as long as the rest of your borrower profile meets the requirements. In addition, cash-out pricing at 720 is often significantly better than at 680 or 700.

Why a 720 Credit Score Matters for Conventional Loans

While every lender’s pricing differs, 720 is often a major pricing breakpoint where you may see:

• Lower interest rates

• Better lender credits

• Fewer required discount points

• Cheaper PMI

💡 Pro Tip: Don’t let a 0.25% rate markup erase the value of your 720 score. Verify your pricing is competitive before you lock.

FHA Refinance Options with a 720 Credit Score

Even though FHA loans are geared toward lower-credit borrowers, a borrower with a 720 credit score may benefit in specific situations.

FHA Rate-and-Term Refinance

Borrowers with a 720 credit score often receive competitive FHA rates, which can be beneficial if:

• Your LTV is high

• Your DTI is high

• Your mortgage insurance structure is cheaper than conventional equivalents

FHA Streamline Refinance

If you already have an FHA loan, this is one of the easiest refinance paths:

• No appraisal (typically)

• No income documentation

• Quick approval

• Actual requirements vary by lender, as some lenders add overlays to reduce the risk of default.

FHA Cash-Out Refinance

Cash-out refinances are riskier for lenders, but borrowers with a 720 credit score are often in a good position, as long as they meet all other requirements.

Should a Borrower With a 720 Credit Score Choose an FHA Loan?

FHA loans typically aren’t necessary for borrowers with a 720 credit score, unless:

• You currently have an FHA loan

• Your LTV is too high for conventional loans

• You plan to refinance again once your LTV improves

VA Refinance Options with a 720 Credit Score

Veterans and military borrowers with a 720 score may receive some of the best pricing offered across all loan types with a VA loan.

VA IRRRL (Streamline)

The VA streamline program is for veterans who already have a VA loan and want to lower their interest rate or realize another tangible benefit. They often include the following benefits:

• Minimal documentation

• Very competitive rates

• No appraisal in many cases

• Actual requirements may vary by lender.

VA Cash-Out Refinance

A 720 credit score makes VA cash-out refinancing a cost-effective way to tap equity, often beating conventional and FHA pricing.

Jumbo Refinance Options at 720

This is where a 720 credit score really shines.

Many jumbo lenders require:

• 700–720 minimum scores

At 720, you may qualify for:

• Strong jumbo pricing

• Lower reserve requirements

• Higher allowable LTVs

• Improved cash-out eligibility

A 720 score typically delivers significantly better jumbo terms than a 700 score.

How a 720 Credit Score Affects Lender Fees

Many lenders offer reduced pricing adjustments across the board for borrowers with a 720 credit score.

At 720, lenders typically provide:

• Lower origination fees

• Fewer pricing hits

• Minimal or no discount points

• Larger lender credits

• Better cash-out pricing

• Better PMI pricing

Example

To access a competitive rate:

• A 720 borrower may pay 0 points

• A 680 borrower might need to pay 0.5–1.0 points

• A 740 borrower typically pays 0 points (depending on the lender and borrower profile)

• These figures are for illustrative purposes only and do not reflect actual rates and fees. Consult with a mortgage professional to see your options.

How a 720 Score Improves PMI Costs

Because lenders base PMI pricing on credit scores, you may enjoy the following benefits on a conventional refinance:

• PMI may be significantly cheaper at 720

• Premiums may be 50–70% lower than at 660

If PMI is still costly, you may consider an FHA refinance as a temporary measure until your LTV drops.

When Refinancing With a 720 Credit Score May Make Financial Sense

Every situation is different, but here are some instances when refinancing with a 720 credit score may make sense:

1. You’re reducing your interest rate

You’ll likely qualify for premium pricing, which may lower your break-even point.

2. You’re removing PMI

If you have at least 20% equity in the home, you may be eligible to remove PMI, and get premium pricing thanks to your higher credit score.

3. You’re doing a cash-out refinance

Cash-out pricing is often more favorable for borrowers with a 720 credit score.

4. You’re refinancing a jumbo loan

A 720 credit score is a major cutoff for better jumbo pricing, which can make jumbo financing more affordable.

5. You want maximum lender competition

Lenders often aggressively court borrowers with 720+ credit scores, giving you more room for negotiations.

💡Pro tip: Two lenders could price the same 720-credit-score borrower $200/month apart. Upload your Loan Estimate to see where yours stands.

When You Might Improve Your Score to 740+

While 720 is excellent, improving your score to 740+ with a great overall borrower profile gives you:

• Even lower potential rates

• Lowest PMI pricing

• Better jumbo pricing

• More lender credits

• Cheaper discount point structure

• Faster underwriting approvals

A 20-point improvement may save you thousands in interest and fees over the life of the loan.

How to Improve a 720 Score Before Refinancing

Changes won’t affect two borrowers identically, but these tips may help improve your score:

1. Lower revolving utilization

The amount of credit you have outstanding compared to your credit line affects your credit score. Keep your balance below 30% of your total credit limit, and your credit score may improve.

2. Avoid new credit inquiries

Hard pulls temporarily reduce your score, which happens each time you apply for new credit. Avoid applying for new credit while trying to increase your score.

3. Check credit reports for errors

Removing inaccuracies can create quick gains. Credit reports often have errors that could hurt your credit score without you realizing it. Dispute any errors with the credit bureaus to fix the issue.

4. Keep older accounts open

The longer your accounts are open, the better it is for your credit score. Even if you have accounts you don’t use, keep them open to improve your score.

5. Make on-time payments across all accounts

Payment history is the biggest scoring factor. The more payments you make on time, the better it is for your credit score.

Why Comparing Lenders Still Matters at a 720 Credit Score

Even though 720 credit scores often get premium pricing, lenders still differ significantly:

• Some treat 720 as “nearly top-tier”

• Some treat 720 as “mid-high”

• Some offer low closing costs

• Some require discount points

• Some offer aggressive lender credits

Because you’re so close to elite tiers, the pricing spread across lenders can be thousands of dollars — and refinancing without comparing offers leaves money on the table.

How Fincast Can Help

Here’s the challenge: lenders treat 720 credit scores very differently. Some place you near their top-tier pricing. Others group you with 700-719 credit-score borrowers and charge accordingly. The difference can be $50-$150/month, or $18K-$54K over 30 years.

Because you’re so close to elite pricing, comparison matters more, not less. Fincast helps you capture the full value of your 720 score.

How Fincast Works

1. Upload your Loan Estimate

No new application.

No extra credit pull.

2. Fincast analyzes your 720-level pricing

Breaking down:

• Rate

• APR

• Fees

• Points

• Credits

• PMI

• Cash-out pricing

• Closing costs

3. Vetted lenders anonymously compete to beat your offer

You stay hidden → no spam.

Lenders sharpen pricing → you potentially save more.

4. You get a clear comparison

If your offer is premium-level, Fincast confirms it. If not, you’ll receive offers to compare your options.

FAQs: Refinancing with a 720 Credit Score

Is 720 a good score for refinancing?

Yes — 720 is often a premium tier for lenders.

Are rates much better at 740+?

They can be, based on your full credit profile — but a 720 credit score is still very strong.

Can I do a cash-out refinance with a credit score of 720?

It depends on your overall borrower profile, but many borrowers in this credit score range enjoy excellent pricing.

Can a borrower with a 720 credit score refinance a jumbo loan?

If you meet lender requirements, it may be possible to refinance a jumbo loan with a 720 credit score, often at favorable rates.

Will refinancing hurt my credit?

New credit can temporarily lower your credit score due to a hard inquiry when your credit is pulled, and the presence of a new loan. However, it’s usually only for a short time.

Bottom Line

A 720 credit score may put you in a premium refinance category. You may qualify for nearly every loan type, enjoy some of the best pricing on the market, and benefit from aggressive lender competition. While 740+ unlocks top-tier pricing for qualified borrowers, 720 often still delivers excellent rates and low fees.

Action Checklist

☑️ Pull your credit reports from all three bureaus (www.annualcreditreport.com)

☑️ Get Loan Estimates from 2-3 lenders

☑️ Upload your best Loan Estimate to Fincast for anonymous lender competition

☑️ Compare offers side-by-side, focusing on APR and total costs

☑️Lock your rate when you’ve confirmed competitive pricing

👉 Ready to see whether your 720 credit score qualifies you for lower refinance rates and fees? Upload your Loan Estimate to Fincast and let vetted lenders compete anonymously to offer you their best pricing — no spam, no extra credit pulls, just savings.

This article is for educational purposes only and does not constitute personalized financial advice. Mortgage requirements vary by lender and individual circumstances. Consult with a licensed mortgage professional for your specific situation.