20-year mortgage rates may be best bet for buyers today | September 6, 2022

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See mortgage rates for September 6, 2022, which are mixed from last Friday. (Credible)

Based on data collected by Credible, mortgage refinance rates They are mixed from last Friday, with one key rate up, one down and two others remaining unchanged.

Rates last updated on September 6, 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 does this mean: Rates for a 30-year refinance hit 5.875% over the weekend, the highest level since late July. Meanwhile, 20-year rates fell slightly and 10- and 15-year rates were flat. Shorter payment terms continue to offer the best opportunity for homeowners to save on interest, but homeowners looking to maintain a longer payment term may want to consider a 20-year refinance.

Today’s mortgage rates for home purchases

According to data compiled by Credible, mortgage rates for home purchases are mixed as of last Friday, with one key rate rising, one falling and two others holding steady.

Rates last updated on September 6, 2022. These rates are based on the assumptions shown here. Actual rates may vary. Credible, a personal finance marketplace, has over 5,000 Trustpilot reviews with an average star rating of 4.7 (out of 5.0).

What does this mean: 20-year rates fell slightly over the weekend, while 30-year rates rose. With rates for 10- and 15-year loans remaining at 5.25%, borrowers who can afford higher monthly mortgage payments should shop around and consider shorter payment terms to find the best possible rate.

To find great mortgage rates, start by using Credible’s secure website, which can show you current mortgage rates from multiple lenders without affecting your credit score. You can also use Credible mortgage calculator to estimate your monthly mortgage payments.

How Mortgage Rates Have Changed Over Time

Current mortgage interest rates are well below the highest average annual rate recorded by Freddie Mac: 16.63% in 1981. A year before the COVID-19 pandemic disrupted economies around the world, the rate 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 with 2019 and earlier mortgages could potentially realize significant interest savings by refinancing at one of today’s lowest interest rates. When considering refinancing or purchasing a mortgage, it’s important to consider closing costs such as appraisal, application, origination, and attorney fees. These factors, in addition to the interest rate and loan amount, contribute to the cost of a mortgage.

Are you looking to buy a house? credible can help you compare current rates from multiple mortgage lenders at once in just a few minutes. Use Credible’s online tools to compare rates and get prequalified today.

Thousands of Trustpilot reviewers rate Credible as “excellent.”

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’s average mortgage rates and mortgage refinance rates reported in this article are calculated based on information provided by partner lenders who pay compensation to Credible.

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

The credible mortgage rates reported here will only give you an idea of ​​current average rates. The rate you actually receive can vary based on a number of factors.

How to get low mortgage rates

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

It’s also a good idea to compare rates from different lenders to find the best rate for your financial goals. According to an investigation by freddy macBorrowers can save an average of $1,500 over the life of their loan by purchasing just one additional rate quote, and an average of $3,000 when comparing five rate quotes.

If you’re trying to find the right mortgage rate, consider using Credible. You may use Credible’s free online tool to easily compare multiple lenders and view pre-qualified rates in just a few minutes.

Do you have a finance-related question, but don’t know who to ask? Email the credible money expert at [email protected] and your question could be answered by Credible in our Money Expert column.

As a credible authority on mortgages and personal finance, Chris Jennings has covered topics including home loans, mortgage refinancing, and more. He has 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.

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