Yes, 740 is considered the gold standard for mortgage rate pricing. Most lenders' best rate tiers begin at 740, meaning you qualify for the lowest interest rates available in the market. While scores above 740 may see marginal improvements, the most significant rate break happens at this threshold. You are in the most favorable position as a mortgage borrower.

With your excellent 740 score, you can put as little as 3% down on a conventional loan. On a $400,000 home, that is just $12,000. Your PMI at this score with low down payment is minimal — often under $100 per month. VA-eligible borrowers can put 0% down. You have maximum flexibility to choose between a lower down payment with minimal PMI or a larger down payment to reduce your monthly payment.

The savings are dramatic. On a $400,000 30-year conventional loan, a 740 score versus 620 typically saves 1.25-2% in interest rate, translating to $300-$500+ per month. Over 30 years, total savings range from $108,000 to $180,000 or more. PMI at 740 costs roughly 60-70% less than at 620. Your excellent credit is one of your most valuable financial assets.

Marginal improvements exist, but 740 already qualifies for the best rate tiers at most lenders. The difference between 740 and 800 is typically 0-0.125% in rate, which amounts to $25-$35 per month on a $400,000 loan. Your time is better spent finding the right home, negotiating the purchase price, and comparing lender offers than trying to squeeze out additional credit score points.