Today’s mortgage rates open week holding at bargain lows | August 23, 2021

Based on data compiled by Credible, mortgage rates have remained unchanged since last Friday.

• 30-year fixed mortgage rates: 2.750%, unchanged
• 20-year fixed mortgage rates: 2.625%, unchanged
• 15-year fixed mortgage rates: 2.125%, unchanged
• 10-year fixed mortgage rates: 2.000%, unchanged

Rates last updated on August 23, 2021. These rates are based on the assumptions shown here. Actual rates may vary.

What this means: Though it’s common for mortgage rates to fluctuate from day to day, rates for a mortgage purchase have continued at historic lows throughout the summer. Rates across all terms have held steady since last Friday, marking an opportunity for homebuyers to see significant interest savings regardless of whether they purchase a home with a longer or a shorter term.

To find the best mortgage rate, start by using Credible, which can show you current mortgage and refinance 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

Rates for a 20-year mortgage refinance crept up to 2.625% today after falling to 2.500% last Friday. Still, this term represents a good bargain for homeowners who want to refinance into a shorter term while saving on interest and keeping their monthly payment manageable. Rates for 15-year and 10-year terms might be appealing as well — rates for both terms have stuck at 2.125% for 11 days in a row. If you’re considering refinancing an existing home, check out what refinance rates look like:

• 30-year fixed refinance rates: 2.750%, unchanged
• 20-year fixed refinance rates: 2.625%, up from 2.500%, +0.125
• 15-year fixed refinance rates: 2.125%, unchanged
• 10-year fixed refinance rates: 2.125%, unchanged

Rates last updated on August 23, 2021. 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 does the loan term impact my mortgage?

Your loan’s term is the number of years in which you’ll make equal monthly payments of principal and interest to repay your mortgage. Generally, shorter repayment terms come with lower interest rates, and longer terms have higher interest rates. Longer terms and shorter terms both have their pros and cons. 

With a shorter repayment term you’ll:

• Get a lower interest rate
• Pay less in interest over the life of the loan
• Have a higher monthly payment amount

A longer repayment term will give you:

• A lower monthly payment amount
• A higher interest rate
• Higher interest costs over the life of the loan

Generally, a shorter repayment term is best for people who can afford a larger monthly payment, who want to build home equity quickly, don’t plan to stay in their home for long and who are buying a house that’s well within their ability to afford.

You might choose a longer repayment term if your priority is a lower monthly payment, you know you’ll be in your home long-term or you want to increase the mortgage amount you can qualify for.

Current mortgage rates

Today’s average mortgage interest rate sits at 2.375%, which is the same as last Friday. Average mortgage rates overall have held well below 2.5% for 28 days in a row. 

Current 30-year mortgage rates

The current interest rate for a 30-year fixed-rate mortgage is 2.750%. This is the same as last Friday. 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 2.625%. This is the same as last Friday. 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 2.125%. This is the same as last Friday. 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 2.000%. This is the same as last Friday. 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 August 23, 2021. 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 unchanged compared to this time last week.

• 30-year fixed mortgage rates: 2.750%, the same as last week
• 20-year fixed mortgage rates: 2.625%, up from 2.500% last week, +0.125
• 15-year fixed mortgage rates: 2.125%, the same as last week
• 10-year fixed mortgage rates: 2.000%, the same as last week

Rates last updated on August 23, 2021. 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.

What are mortgage points? 

To understand what mortgage points are and how they work, it’s helpful to keep in mind that charging interest is the main way lenders make money. When you get a low interest rate and pay less interest, your lender makes less money off your mortgage than they would if they charged you a higher interest rate.

Points — also called discount points — are a way for lenders to make money while still giving you a lower interest rate. Points are upfront charges you pay at closing in exchange for a lower interest rate. They increase your closing costs but can lower your interest expense over the life of the loan.

Generally, one point is equal to 1% of the loan amount, although that can vary. How much each point will lower your interest rate depends on the lender, the type of mortgage and the mortgage market in the area where you’re buying.

Here’s an example of how mortgage points can work.

• You apply for a $200,000 mortgage at 4% interest
• Your lender charges you two discount points
• Each point is equal to 1% of your loan amount and lowers your interest rate by 0.25%
• You pay your lender $4,000 at closing
• Your lender reduces your interest rate by 0.50% to 3.50%

Points may be a good option if you know you’re going to be in your home for a long time and will be able to recoup the extra closing costs and enjoy the interest savings. Points may also be a way to get a lower interest rate if your credit isn’t strong enough to qualify for a low rate.

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 lenders so it’s wise to shop around and compare policy quotes.

Credible has a partnership with a home insurance broker. You can compare free home insurance quotes through Credible’s partner here. 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 [email protected] 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.