How does a higher credit score generally affect mortgage rates?

A higher credit score typically results in lower interest rates because lenders view borrowers with higher credit scores as lower risk. Individuals with good credit histories are more likely to make their payments on time, which reduces the lender’s likelihood of default. To attract these low-risk borrowers, lenders often offer better rates and terms, making mortgages more affordable.

This relationship between credit score and interest rates reflects broad trends in lending practices, where the credit score serves as a critical metric in assessing the borrower's reliability. A strong credit profile not only enhances borrowing potential at lower costs but also provides access to a wider array of mortgage products. Therefore, those with higher credit scores can benefit from lower monthly payments and overall costs related to their mortgage loans, making option C the accurate choice.