Today’s best mortgage deal? Look to 15-year rates to save | Dec. 19, 2022

• 30-year fixed mortgage rates: 6.125%, up from 6.000%, +0.125
• 20-year fixed mortgage rates: 5.500%, unchanged
• 15-year fixed mortgage rates: 5.375%, down from 5.500%, -0.125
• 10-year fixed mortgage rates: 5.375%, down from 5.500%, -0.125

Rates last updated on Dec. 19, 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 a 30-year mortgage climbed to 6.125% over the weekend, while 20-year rates held steady. Meanwhile, rates for 10- and 15-year terms fell slightly to 5.375%. Buyers who can swing a larger monthly mortgage payment will find the most interest savings with shorter repayment terms. Borrowers seeking more time to repay their mortgage may want to consider 20-year rates, which are more than half a point lower than 30-year rates.

• 30-year fixed-rate refinance: 6.125%, up from 6.000%, +0.125
• 20-year fixed-rate refinance: 5.500%, unchanged
• 15-year fixed-rate refinance: 5.375%, down from 5.500%, -0.125
• 10-year fixed-rate refinance: 5.375%, down from 5.500%, -0.125

Rates last updated on Dec. 19, 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: Thirty-year mortgage refinance rates edged up to 6.125% over the weekend. Meanwhile, 10- and 15-year rates edged down and 20-year rates held steady. Homeowners looking to refinance may want to consider shorter terms, as they’re three quarters of a point lower than 30-year rates. But homeowners who want a longer-term refinance should stick with 20-year rates.

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%.

What is a good mortgage rate?

Generally, a good mortgage rate is one that’s the lowest you can qualify for based on your individual factors, such as credit history, income, other debts, down payment amount and more.

A rate that’s good for your financial situation should result in a monthly mortgage payment that you can manage, while leaving plenty of room in your monthly budget to put toward savings, investments and an emergency fund. And a good rate should be competitive with average rates in the geographic area where you’re looking to buy.

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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.