Mortgage

Today’s best mortgage rates? Look to mid-length repayment terms | Jan. 6, 2022

Today's best mortgage rates? Look to mid-length repayment terms | Jan. 6, 2022
Written by Publishing Team

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Check out the mortgage rates for January 6, 2022, which were different from yesterday. (iStock)

Based on data compiled by Credible, mortgage rates have held steady for two major periods and increased for two more since yesterday.

  • Fixed 30 year mortgage rates: 3.375% up from 3.250%, +0.125
  • Fixed 20 year mortgage rates: 3,000% unchanged
  • Fixed Mortgage Rates for 15 Years: 2,500% unchanged
  • Fixed 10-year mortgage rates: 2.625% up from 2.375%, +0.250

Prices were last updated on January 6, 2022. These prices are based on the assumptions shown here. Actual rates may vary.

What does this mean: Interest rates are up today on 30-year mortgages – the most popular payment terms – and 10-year mortgages. With 20- and 15-year rates remaining steady at 3% or less, homebuyers may find better savings opportunities with these mid-length terms. Buyers who keep the 20-year rate today at 3% on a $250,000 loan instead of the 30-year at 3.375% would pay just $281 more per month and save more than $65,000 in interest over the life of the loan.

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

To find the best mortgage rate, start with Credibility, which can show you your current mortgage and refinancing rates:

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

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

Consider Mortgage Refinance Rates Today

Today’s mortgage refinancing rates have remained flat for two major rates and have risen to two others. Homeowners interested in refinancing into a 30-year mortgage have another opportunity to save today, as interest rates for that term have held steady since yesterday. If you are considering refinancing an existing home, check out what the refinancing rates look like:

  • Refinance at a fixed rate for 30 years: 3.375% unchanged
  • Fixed rate refinance for 20 years: 3.125% up from 3.000%, +0.125
  • 15-Year Fixed Rate Refinance: 2,500% unchanged
  • Fixed rate refinance for 10 years: 2.625% up from 2.500%, +0.125

Prices were last updated on January 6, 2022. These prices are based on the assumptions shown here. Actual rates may vary.

A site like Credible can be of great help when you are ready to compare mortgage refinance loans. Credible lets you see pre-qualified rates for traditional mortgages from multiple lenders, all within a few minutes. Visit Credible today To start.

Credible has a rating of 4.7 stars (out of 5.0 possible) on Trustpilot and over 4,500 reviews from customers who have safely compared pre-qualified prices.

How do I choose a mortgage lender?

A mortgage is probably the largest debt you’ll ever take on in your life—one that will take decades to pay off. So it is crucial to make sure that you choose a mortgage and mortgage lender that works best for your needs and your financial situation.

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

  1. Shop comparison. Compare rates and terms from several lenders. Just as you are comparing shopping for less important purchases, you should compare offers from several lenders. a Freddy Mac دراسة Study I’ve found that adding just one quote to your mortgage search can save you $1,500 over the life of the loan. Adding five can save you about $3,000. Credibility makes it easy to compare your pre-qualified rates from several lenders.
  2. Consider a mortgage broker. Mortgage brokers can do the legal work for you when it comes to finding a loan deal. But know that mortgage brokers usually make money by charging a small percentage of the loan for their services.
  3. Strengthening relationships. Explore mortgage offers from banks and financial institutions you already deal with. Loyalty and familiarity may work to your advantage in negotiating a good mortgage deal.
  4. Look for referrals. Ask friends, family, co-workers, and neighbors for referrals, and about their experiences with various lenders.

Current Mortgage Rates

The average mortgage interest rate across all repayment periods is 2.875% today, the highest in 14 months.

Current 30-Year Mortgage Rates

The current 30-year fixed rate mortgage rate is 3.375%. This is from yesterday. Thirty years is the most common payment term for mortgages because 30-year mortgages usually give you a lower monthly payment. But they usually come at higher interest rates, which means you’ll end up paying more interest over the life of the loan.

Current mortgage rates for 20 years

The current interest rate on a 20-year fixed rate mortgage is 3,000%. This is the same yesterday. Shortening your repayment period by just 10 years can mean that you’ll get a lower interest rate – and you’ll pay less in total interest over the life of the loan.

Current Mortgage Rates for 15 Years

The current interest rate on a 15-year fixed rate mortgage is 2,500%. This is the same yesterday. Fifteen-year mortgages are the second most common mortgage term. A 15-year mortgage can help you get a lower rate of 30 years — and pay less interest over the life of the loan — while still keeping your monthly payments manageable.

Current 10-year mortgage rates

The current interest rate on a 10 year fixed rate mortgage is 2.625%. This is from yesterday. Although mortgages are 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 different lenders that offer mortgage refinancing as well as home loans. Check for credibility Get pre-qualified today, and take a look at today’s refinancing rates through the link below.

Thousands of Trustpilot reviewers rated the reliability as “excellent”.

Prices were last updated on January 6, 2022. These prices 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 averaged based on information provided by partner lenders that pay offsets to Credible.

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

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

How have mortgage rates changed?

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

  • Fixed 30 year mortgage rates: 3.375%, up from 3.250% last week +0.125
  • Fixed 20 year mortgage rates: 3,000%, up from 2.875% last week, +0.125
  • Fixed Mortgage Rates for 15 Years: 2,500%, up from 2.375% last week, +0.125
  • Fixed 10-year mortgage rates: 2.625%, up from 2.250% last week +0.375

Prices were last updated on January 6, 2022. These prices are based on the assumptions shown here. Actual rates may vary.

If you are trying to find the right price for your home mortgage or are looking to refinance an existing home, consider using credibility. You can Use our free online Credible tool Easily compare multiple lenders and see pre-qualified rates in just a few minutes.

With over 4,500 reviews, Credible has maintained a Trustpilot score of “excellent”.

Why do mortgage rates fluctuate?

If you follow mortgage interest rates for a few days, you’ll likely notice that rates can fluctuate a little – or a lot – from day to day. There are many factors that drive these fluctuations. Here are some of the most common reasons mortgage rates move frequently:

Recruitment patterns

The labor market has a wide-ranging impact on the overall economic health of a country. When more people are unemployed, the economy suffers. When more people are fully employed, the economy benefits. The employment rate is also an indicator of the demand for mortgages.

When the number of unemployed increases, fewer people are looking to get a mortgage and buy a home – and lower demand will lower interest rates. When the employment rate improves, it will likely keep pace with the demand for mortgages. As the demand for mortgages increases, so will mortgage interest rates.

bond market

Since bonds are a low-risk type of investment, the demand for bonds can increase when investors are concerned about other investment vehicles, or are afraid of the general state of the economy. Increased demand for bonds causes their prices to rise and their profits – called their yield – to fall.

When bond yields fall, so do consumer interest rates in general, including mortgage interest rates. When investors feel more confident about the economy, demand for bonds falls, bond prices fall and yields rise. And interest rates tend to follow suit.

Federal Reserve System

The Federal Reserve, as it is commonly called, is the central bank of the United States. But it doesn’t actually set mortgage rates. Instead, there are multiple things the Fed does that affect mortgage rates. For example, while mortgage rates do not reflect the federal funds rate — banks apply the rate when borrowing money to each other overnight — they tend to follow. If that rate goes up, mortgage rates usually go up in tandem.

The Fed also buys and sells mortgage-backed securities, or MBS – a package of similar loans that a major mortgage investor buys and then resells to investors in the bond market. Prices tend to fall when the Fed is making a lot of buying. When the Fed buys fewer MBS, demand falls and prices are likely to rise. Likewise, when the Fed raises the federal funds rate, mortgage rates will also rise.

International Economy

The global banking systems and economies are closely interconnected. When economies in other parts of the world – especially Europe and Asia – suffer downturns, it affects investors and financial institutions in the United States. And when foreign economies do well, they may attract more American investors — and shift that investment money out of the American economy.

These global influences contribute to the overall health of the US economy. When the domestic economy is in good shape, interest rates rise. And when the US economy falters, interest rates fall.

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 between insurance companies, so it is wise to shop and compare policy quotes.

Credible has a partnership with a home insurance broker. You can compare for free Home insurance quotes through a Credible partner here. It is fast and easy and the whole process can be completed completely online.

Have a question related to financing, but don’t know who to ask? Email Certified Money Expert at moneyexpert@credible.com and your question may be answered by Credible in our Money Expert column.

As a credible authority in the field of mortgages and personal finance, Chris Jennings has covered topics including mortgage loans, mortgage refinancing and more. He has been an editor and editorial assistant in the online personal finance industry for four years. His work has been featured by MSN, AOL, Yahoo Finance, and more.

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