Today's best mortgage deal? 20-year rates hold steady, low for 11th day | Dec. 22, 2021

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Based on data compiled by Credible, mortgage rates are mixed since yesterday.

• 30-year fixed mortgage rates: 3.375%, up from 3.125%, +0.250
• 20-year fixed mortgage rates: 2.875%, unchanged
• 15-year fixed mortgage rates: 2.375%, up from 2.250%, +0.125
• 10-year fixed mortgage rates: 2.250%, unchanged

Rates last updated on Dec. 22, 2021. These rates are based on the assumptions shown here. Actual rates may vary.

What this means: With 30-year mortgage interest rates surging to their highest level of the year, homebuyers who want to lock in a rate today should consider a 20-year term. While the shorter term will yield a higher monthly mortgage payment, buyers who choose this term could realize substantial interest savings over the life of their loans. And buyers considering waiting for rates to fall again might rethink that plan — experts predict rates will continue to climb throughout 2022. In fact, the Mortgage Bankers Association forecasts that 30-year fixed-rate mortgages will soar to 4% by the end of 2022.

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

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.

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Looking at today’s mortgage refinance rates

Rates for 30-year refinances rose by a quarter percentage point since yesterday, hitting their highest level of the year. With 20-year rates also rising to their highest level in 18 days, homeowners looking to lock in a refinance rate below 3% should consider shorter terms. If you’re considering refinancing an existing home, check out what refinance rates look like:

• 30-year fixed-rate refinance: 3.375%, up from 3.125%, +0.250
• 20-year fixed-rate refinance: 3.000%, up from 2.875%, +0.125
• 15-year fixed-rate refinance: 2.375%, up from 2.250%, +0.125
• 10-year fixed-rate refinance: 2.375%, up from 2.250%, +0.125

Rates last updated on Dec. 22, 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.

Factors that influence mortgage rates (and are out of your control)

Many factors influence the interest rate a lender may offer you. Some — such as your credit score — are in your control. But others you have no ability to affect, such as:

• The economy — During financial downturns, the Fed may lower interest rates to try to stimulate the economy. And when the economy is doing well, interest rates can rise.
• Inflation — Interest rates tend to move with inflation. When the overall cost of goods and services increases, interest rates are also likely to rise.
• The Federal Reserve — The Fed may choose to lower interest rates to stimulate a struggling economy, or raise rates in an attempt to put the brakes on inflation.
• Macro employment trends — When many people are out of work, as they were during the months of pandemic lockdown, mortgage rates may fall. As employment increases, interest rates typically also increase.

Current mortgage rates

Today’s average mortgage interest rate across all terms rose to 2.719%, the highest it’s been in 17 days.

Current 30-year mortgage rates

The current interest rate for a 30-year fixed-rate mortgage is 3.375%. This is up from 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 2.875%. This is the same as 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 up from 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 2.250%. 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 Dec. 22, 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 mostly the same compared to this time last week.

• 30-year fixed mortgage rates: 3.375%, up from 3.125%, +0.250
• 20-year fixed mortgage rates: 2.875%, the same as last week
• 15-year fixed mortgage rates: 2.375%, the same as last week
• 10-year fixed mortgage rates: 2.250%, the same as last week

Rates last updated on Dec. 22, 2021. 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.

Comparing home loan types 

Home ownership is a key component of the American Dream for many people. And between the federal government and private lenders, multiple types of home loans are available to help as many people as possible achieve the dream of owning a home.

With so many options, it can be difficult to know which type of home loan may be best for your needs. Here are some comparisons to help you understand the difference between loan types.

Government-backed vs. conventional loans

Government-backed loans are either issued or insured by the federal government. These include FHA loans, VA loans, and USDA loans. Conventional loans are not issued or insured by the government.

Because the risk to private lenders is lower with government-backed loans, these loans can be easier to get, but have higher interest rates. With conventional loans, the lender assumes all the risk if a borrower defaults, so they can be more difficult to get. But if you have the credit score and income to qualify for a conventional loan, you may find you’re able to get a better interest rate.

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.

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.

As a Credible authority on mortgages and personal finance, Chris Jennings has covered topics that include mortgage loans, mortgage refinancing, and more. He’s been an editor and editorial assistant in the online personal finance space for four years. His work has been featured by MSN, AOL, Yahoo Finance, and more.