Today’s best mortgage deal? Look to shorter terms to save | Oct. 31, 2022

• 30-year fixed-rate refinance: 6.875%, up from 6.750%, +0.125
• 20-year fixed-rate refinance: 6.875%, up from 6.750%, +0.125
• 15-year fixed-rate refinance: 6.125%, unchanged
• 10-year fixed-rate refinance: 6.125%, down from 6.250%, -0.125

Rates last updated on Oct. 31, 2022. 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 over the weekend for longer repayment terms, bringing 20- and 30-year rates closer to 7%. Meanwhile, 10-year rates fell slightly and 15-year rates held steady. Homeowners looking to refinance may want to consider 10- and 15-year rates, as they’re more than half a percentage point lower than rates for longer terms.

Today’s mortgage rates for home purchases

• 30-year fixed mortgage rates: 6.875%, up from 6.750%, +0.125
• 20-year fixed mortgage rates: 6.875%, up from 6.750%, +0.125
• 15-year fixed mortgage rates: 6.125%, unchanged
• 10-year fixed mortgage rates: 6.125%, down from 6.250%, -0.125

Rates last updated on Oct. 31, 2022. 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 20- and 30-year mortgages edged up today, climbing closer to the 7% mark. With rates for 10- and 15-year loans at 6.125%, borrowers who can afford higher monthly payments should comparison shop and consider shorter repayment terms to find their best possible rate. Though shorter terms come with higher monthly payments, they offer homeowners the opportunity to be 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.

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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 to get low mortgage rates

If you want to get the lowest possible monthly mortgage payment, taking the following steps can help you secure a lower rate on your home loan:

• Improving your credit score
• Paying down debt
• Making a bigger down payment

It’s also a good idea to compare rates from different lenders to find the best rate for your financial goals. According to research from Freddie Mac, borrowers can save $1,500 on average over the life of their loan by shopping for just one additional rate quote – and an average of $3,000 by comparing five rate quotes.

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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.