Credit glossary
Loan-level price adjustment (LLPA)
A risk-based charge Fannie Mae and Freddie Mac apply to conventional mortgages by credit score and loan-to-value, which shapes the price lenders quote.
LLPAs are percentages of the loan amount, set in a grid by score band and loan-to-value. Fannie Mae's matrix dated September 30, 2026 uses one grid for Classic FICO and VantageScore 4.0. For a purchase with 75.01% to 80% loan-to-value, it lists 0.375% at 780 or higher, 0.875% at 740 to 759, 1.25% at 720 to 739 and 1.75% at 680 to 699.
This is where a few points turn into dollars. The bands step at fixed cutoffs, so moving from 739 to 740 can matter more than moving from 745 to 755. Lenders can show the cost as a higher rate or as an upfront charge. Ask a loan officer to price your loan at your current score and at the next band up before deciding whether to wait.
Example
On a $300,000 loan at 75.01% to 80% loan-to-value, the matrix's 1.75% for 680 to 699 comes to $5,250, while 0.875% for 740 to 759 comes to $2,625. The difference is $2,625.
Guides that go deeper
- How your credit score changes your mortgage cost, in dollarsFannie Mae charges a fee by score band and down payment. See the 2026 grid, a $300,000 home priced at every band, and how the fee becomes your rate.
- Credit score for a conventional loan after Fannie Mae dropped 620Fannie Mae's automated underwriting no longer requires a 620 score, but manual loans, lender overlays and pricing still do. What changed and what didn't.
- What it takes to reach 850, and why you don't need itAbout 1.7% of people have an 850 FICO Score. What their files look like, how long it takes, and where a higher score stops saving money.
Sources
- Loan-Level Price Adjustment Matrix (09.30.2026), Fannie Mae
- Credit Scores, Federal Housing Finance Agency
This is education, not legal or financial advice. Spot an error? Tell us and we'll fix it.