Today's best mortgage deal: 20-year rates dive | Jan. 13, 2022

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Based on data compiled by Credible, mortgage rates inched up for one key term and dropped for three other terms since yesterday.

• 30-year fixed mortgage rates: 3.500%, up from 3.440%, +0.060
• 20-year fixed mortgage rates: 3.125%, down from 3.875%, -0.750
• 15-year fixed mortgage rates: 2.625%, down from 3.125%, -0.500
• 10-year fixed mortgage rates: 2.625%, down from 3.125%, -0.500

Rates last updated on Jan. 13, 2022. These rates are based on the assumptions shown here. Actual rates may vary.

What this means: Homebuyers have some good news today: With rates falling for three out of four terms, buyers have another opportunity to lock in a money-saving rate. Buyers who want to keep their monthly payment manageable might want to lock in a 20-year mortgage today. Rates for this term plunged by three quarters of a percentage point. But buyers may want to act quickly to lock in a rate before they go up again.

 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.

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

Looking at today’s mortgage refinance rates

After steadily increasing over the past few months, today’s mortgage refinance rates showed significant drops. Homeowners who have been considering a refinance might want to act now before rates start to rise again. If you’re considering refinancing an existing home, check out what refinance rates look like:

• 30-year fixed-rate refinance: 3.375%, down from 3.440%, -0.065
• 20-year fixed-rate refinance: 3.250%, unchanged
• 15-year fixed-rate refinance: 2.625%, down from 3.125%, -0.500
• 10-year fixed-rate refinance: 2.625%, down from 3.125%, -0.500

Rates last updated on Jan. 13, 2022. 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.

How do I get a mortgage?

When you’re ready to buy a home, you should lock down your mortgage options before you begin house hunting. Having your financing lined up can make the process go smoother, and give you a leg up on other buyers who’ve not yet been prequalified or pre-approved for a mortgage.

Here are the general steps to getting a mortgage:

• Get a handle on your finances and credit. Add up your total monthly expenses and subtract them from your total monthly income to see how much you may be able to spend on a monthly mortgage payment. Check your credit score and report to correct any errors and take action if you need to improve your credit score.
• Get pre-approved for a mortgage. Although pre-approval doesn’t guarantee the lender will give you a mortgage, it’s a strong indication you’ll be able to qualify for one when the time comes. Having a pre-approval letter can make your offer more attractive to potential sellers.
• Comparison shop. Once you’ve had an offer accepted on the house of your dreams, it’s time to compare rates from multiple mortgage lenders. Be sure to compare all the costs of a mortgage, not just the interest rate.
• Complete the full application. You’ll need to provide detailed information about your income, savings, monthly expenses and overall financial situation.

Current mortgage rates

Today’s average mortgage rate dropped to 2.969% — the lowest it’s been in six days but still slightly higher than this same time last week.

Current 30-year mortgage rates

The current interest rate for a 30-year fixed-rate mortgage is 3.500%. 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 3.125%. This is down from 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 2.625%. This is down 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 2.625%. This is down from 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.

Thousands of Trustpilot reviewers rate Credible "excellent".

Rates last updated on Jan. 13, 2022. 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 up compared to this time last week.

• 30-year fixed mortgage rates: 3.500%, up from 3.375% last week, +0.125
• 20-year fixed mortgage rates: 3.125%, up from 3.000% last week, +0.125
• 15-year fixed mortgage rates: 2.625%, up from 2.500% last week, +0.125
• 10-year fixed mortgage rates: 2.625%, the same as last week

Rates last updated on Jan. 13, 2022. 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.

How large of a down payment do I need?

A down payment is your initial investment in your home. It’s the portion of a home’s purchase price that you’re able to pay in cash, out of your own pocket, while borrowing the balance.

You’ll typically need to have some money for a down payment when you buy a home. How much you need can vary, depending on the lender and the type of mortgage. For example, Federal Housing Administration (FHA) mortgages have minimum down payment requirements of just 3.5%. Conventional fixed-rate loans often require 5% down payments, while VA and USDA loans don’t require you to have a down payment at all.

Keep in mind that the bigger your down payment, the more likely you are to qualify for a better deal on a mortgage. If your credit is good and you can put down 20% or more, you may be able to qualify for a very good interest rate. Plus, sellers often prefer buyers with higher down payments.

Finally, a 20% down payment will typically mean your lender won’t require private mortgage insurance. PMI protects the lender if you default on the loan, and it increases your monthly mortgage payment. The cost of PMI can vary widely, but it’s typically based on a percentage of your home’s purchase price.  

Looking to lower your home insurance rate?

A home insurance policy can help cover unexpected costs you may incur during homeownership, 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 is partnered with a home insurance broker. If you're looking for a better rate on home insurance and are considering switching providers, consider using an online broker. You can compare quotes from top-rated insurance carriers in your area — 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.