Today’s best mortgage deal? Look to steady 10-, 15-year rates for greatest interest savings | Feb. 10, 2023

• 30-year fixed mortgage rates: 8.000%, up from 7.000%, +1.000
• 20-year fixed mortgage rates: 7.125%, up from 7.000%, +0.125
• 15-year fixed mortgage rates: 6.500%, unchanged
• 10-year fixed mortgage rates: 6.500%, unchanged

Rates last updated on Feb. 10, 2023. These rates are based on the assumptions shown here. Actual rates may vary. Credible, a personal finance marketplace, has 5,000+ Trustpilot reviews with an average star rating of 4.7 (out of a possible 5.0).

What this means: Rates for a 30-year mortgage soared to 8% today, and 20-year rates also edged up. Meanwhile, rates for 10- and 15-year terms have rested at 6.5% for six straight days. Borrowers who can manage a higher monthly payment stand to see greater interest savings with a 10- or 15-year term. But borrowers who want a longer repayment term may want to consider 20-year rates, which are nearly a full percentage point lower than rates for a 30-year mortgage. Comparing rates from multiple lenders can help buyers find the best possible deal for their unique financial situation.

• 30-year fixed-rate refinance: 7.000%, up from 6.875%, +0.125
• 20-year fixed-rate refinance: 7.125%, up from 7.000%, +0.125
• 15-year fixed-rate refinance: 4.750%, unchanged
• 10-year fixed-rate refinance: 4.750%, unchanged

Rates last updated on Feb. 10, 2023. These rates are based on the assumptions shown here. Actual rates may vary. With 5,000 reviews, Credible maintains an "excellent" Trustpilot score.

What this means: Mortgage refinance rates edged up for longer repayment terms today, bringing 30-year rates to the 7% mark. Homeowners stand to save the most on interest with 10- and 15-year rates, which are more than two percentage points lower than rates for 20- and 30-year terms. Though shorter terms come with higher monthly payments, they allow homeowners to become mortgage-free sooner.

How mortgage rates have changed over time

Today’s mortgage interest rates are well below the highest annual average rate recorded by Freddie Mac — 16.63% in 1981. A year before the COVID-19 pandemic upended economies across the world, the average interest rate for a 30-year fixed-rate mortgage for 2019 was 3.94%. The average rate for 2021 was 2.96%, the lowest annual average in 30 years.

The historic drop in interest rates means homeowners who have mortgages from 2019 and older could potentially realize significant interest savings by refinancing with one of today’s lower interest rates. When considering a mortgage refinance or purchase, it’s important to take into account closing costs such as appraisal, application, origination and attorney’s fees. These factors, in addition to the interest rate and loan amount, all contribute to the cost of a mortgage.

How Credible mortgage rates are calculated

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%.

How do I choose a mortgage lender?

A mortgage is likely the largest debt you’ll take on in life — one that will take decades to repay. So it’s critical to make sure you choose a mortgage lender and mortgage that work best for your needs and financial situation.

Here are some tips to help you choose a mortgage lender:

1. Comparison shop. Compare rates and terms from multiple lenders. Just as you comparison shop for less important purchases, you should compare offers from several lenders. A Freddie Mac study found that adding just one quote to your mortgage search could save you $1,500 over the life of a loan. Adding five could save you about $3,000. Credible makes it easy to compare your prequalified rates from multiple lenders.
2. Consider a mortgage broker. Mortgage brokers can do the legwork for you when it comes to finding a loan deal. But be aware that mortgage brokers typically make money by charging a small percentage of the loan for their services.
3. Leverage relationships. Explore mortgage offerings from banks and financial institutions you already do business with. Loyalty and familiarity may work in your favor in negotiating a good mortgage deal.
4. Look for referrals. Ask friends, family, coworkers, and neighbors for referrals, and about their experiences with different lenders.

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