20-year mortgage interest rates dip, emerge as today's best mortgage deal | Oct. 27, 2021

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Based on data compiled by Credible, mortgage rates held steady since yesterday, except for 20-year rates, which edged down.

• 30-year fixed mortgage rates: 3.125%, unchanged
• 20-year fixed mortgage rates: 2.625%, down from 2.750%, -0.125
• 15-year fixed mortgage rates: 2.375%, unchanged
• 10-year fixed mortgage rates: 2.375%, unchanged

Rates last updated on Oct. 27, 2021. These rates are based on the assumptions shown here. Actual rates may vary.

What this means: With rates for other repayment terms holding steady, and 30-year rates above 3%, 20-year mortgage rates may be the best option for homebuyers looking to maximize their interest savings while keeping a lower monthly payment. For those who can afford a higher payment, 15-year rates promise even greater interest savings as those rates haven’t budged for eight straight days.

To find the best mortgage rate, start by using Credible, which can show you current mortgage and refinance rates:

• Check out mortgage refinance rates
• Compare home purchase rates

Browse rates from multiple lenders so you can make an informed decision about your home loan.

Credible, a personal finance marketplace, has 4,500 Trustpilot reviews with an average star rating of 4.7 (out of a possible 5.0).

Looking at today’s mortgage refinance rates

Today’s mortgage refinance rates held steady for three terms, while rising for the shortest term. If you’re considering refinancing an existing home, check out what refinance rates look like:

• 30-year fixed refinance rates: 3.125%, unchanged
• 20-year fixed refinance rates: 2.750%, unchanged
• 15-year fixed refinance rates: 2.375%, unchanged
• 10-year fixed refinance rates: 2.375%, up from 2.250%, +0.125

Rates last updated on Oct. 27, 2021. These rates are based on the assumptions shown here. Actual rates may vary.

A site like Credible can be a big help when you’re ready to compare mortgage refinance loans. Credible lets you see prequalified rates for conventional mortgages from multiple lenders all within a few minutes. Visit Credible today to get started.

Credible has earned a 4.7 star rating (out of a possible 5.0) on Trustpilot and more than 4,500 reviews from customers who have safely compared prequalified rates.

Fixed-rate vs. adjustable-rate mortgage

With a fixed-rate mortgage, your interest rate will remain the same for the life of your loan. At the beginning of your loan, you’ll know exactly how much total interest you’ll pay. But the rate can — and usually does — change with an adjustable-rate mortgage, or ARM. This means the total interest cost of the loan will also change.

ARMs tend to have introductory interest rates that are lower than fixed rates. But when the introductory period ends, the rate can move based on market factors.

Fixed-rate loans can be good for people who know they’ll be in their homes long term. ARMs may be a good option for people who don’t expect to stay in a home long, or who are confident they’ll be able to refinance into a fixed-rate loan when the introductory rate ends.

30-year vs. other terms

The repayment term is the number of years over which you’ll pay back your mortgage. Common terms for fixed-rate mortgages are 30 (the most common), 20, 15, and 10 years.

Generally, the longer your repayment period, the higher your interest rate and total interest costs will be, but you’ll have a lower monthly payment. With shorter terms, you’ll usually get a lower interest rate and total interest costs, but a higher monthly payment.

Conforming vs. jumbo loans

Conforming loans are for amounts that fall below Fannie Mae and Freddie Mac’s established limits. Jumbo loans exceed that limit, which is $548,250 for a single-family home in 2021.

Jumbo loans are generally more difficult to get and come with higher interest rates. But if your dream house is $600,000, you’ll likely need a jumbo loan.

Current mortgage rates

Today’s average mortgage interest rate is 2.625%, down from the average rate of 2.656% yesterday.

Current 30-year mortgage rates

The current interest rate for a 30-year fixed-rate mortgage is 3.125%. This is the same as yesterday. Thirty years is the most common repayment term for mortgages because 30-year mortgages typically give you a lower monthly payment. But they also typically come with higher interest rates, meaning you’ll ultimately pay more in interest over the life of the loan.

Current 20-year mortgage rates

The current interest rate for a 20-year fixed-rate mortgage is 2.625%. This is down from yesterday. Shortening your repayment term by just 10 years can mean you’ll get a lower interest rate — and pay less in total interest over the life of the loan.

Current 15-year mortgage rates

The current interest rate for a 15-year fixed-rate mortgage is 2.375%. This is the same as yesterday. Fifteen-year mortgages are the second most-common mortgage term. A 15-year mortgage may help you get a lower rate than a 30-year term — and pay less interest over the life of the loan — while keeping monthly payments manageable.

Current 10-year mortgage rates

The current interest rate for a 10-year fixed-rate mortgage is 2.375%. This is the same as yesterday. Although less common than 30-year and 15-year mortgages, a 10-year fixed rate mortgage typically gives you lower interest rates and lifetime interest costs, but a higher monthly mortgage payment.

You can explore your mortgage options in minutes by visiting Credible to compare current rates from various lenders who offer mortgage refinancing as well as home loans. Check out Credible and get prequalified today, and take a look at today’s refinance rates through the link below.

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Rates last updated on Oct. 27, 2021. These rates are based on the assumptions shown here. Actual rates may vary.

How Credible mortgage rates are calculated

Changing economic conditions, central bank policy decisions, investor sentiment and other factors influence the movement of mortgage rates. Credible average mortgage rates and mortgage refinance rates are calculated based on information provided by partner lenders who pay compensation to Credible.

The rates assume a borrower has a 740 credit score and is borrowing a conventional loan for a single-family home that will be their primary residence. The rates also assume no (or very low) discount points and a down payment of 20%.

Credible mortgage rates will only give you an idea of current average rates. The rate you receive can vary based on a number of factors.

How mortgage rates have changed

Today, mortgage rates are mixed compared to this time last week.

• 30-year fixed mortgage rates: 3.125%, the same as last week
• 20-year fixed mortgage rates: 2.625%, down from 2.750% last week, -0.125
• 15-year fixed mortgage rates: 2.375%, the same as last week
• 10-year fixed mortgage rates: 2.375%, up from 2.125% last week, +0.250

Rates last updated on Oct. 27, 2021. These rates are based on the assumptions shown here. Actual rates may vary.

These rates are based on the assumptions shown here. Actual rates may vary.

If you’re trying to find the right rate for your home mortgage or looking to refinance an existing home, consider using Credible. You can use Credible's free online tool to easily compare multiple lenders and see prequalified rates in just a few minutes.

With more than 4,500 reviews, Credible maintains an "excellent" Trustpilot score.

What’s the difference between APR and interest rate?

When you’re shopping for a mortgage or refinance loan, you’ll see the terms APR and interest rate arise often. They’re similar but not interchangeable.

The interest rate is the cost the lender will charge annually to loan you money. Annual percentage rate, or APR, encompasses the interest rate and other fees and charges attached to your loan.

Generally, APR gives you a better picture of the true cost of a loan since it takes into account all the costs associated with borrowing money. For a mortgage or refinance, those costs can include discount points, fees, and other charges.

When you apply for a loan, you’ll usually be able to find the interest rate on the first page of your loan estimate, and the APR later in the document listed under "comparisons."

Looking to lower your home insurance rate?

A home insurance policy can help cover unexpected costs you may incur during home ownership, such as structural damage and destruction or stolen personal property. Coverage can vary widely among insurers, so it’s wise to shop around and compare policy quotes.

Credible has a partnership with a home insurance broker. You can compare free home insurance quotes through Credible's partner here. It's fast, easy, and the whole process can be completed entirely online.

Have a finance-related question, but don't know who to ask? Email The Credible Money Expert at moneyexpert@credible.com and your question might be answered by Credible in our Money Expert column.