Today's best mortgage deal? Look to falling 10-year rates | Dec. 15, 2021
Rates for 30-, 20- and 15-year terms rest at money-saving levels for 6 days
Check out the mortgage rates for Dec. 15, 2021, which are mostly unchanged from yesterday. (iStock)
Based on data compiled by Credible, mortgage rates remained largely unchanged since yesterday, except for 10-year rates, which dropped.
- 30-year fixed mortgage rates: 3.125%, unchanged
- 20-year fixed mortgage rates: 2.875%, unchanged
- 15-year fixed mortgage rates: 2.375%, unchanged
- 10-year fixed mortgage rates: 2.250%, down from 2.375%, -0.125
Rates last updated on Dec. 15, 2021. These rates are based on the assumptions shown here. Actual rates may vary.
What this means: Day-to-day rate fluctuations are common, and 10-year purchase rates have gone up or down every day this week. With rates for this shorter term dropping to 2.250% today, homebuyers who can swing a higher monthly payment could maximize their savings by locking in a rate for this term while it’s still low. Rates across all terms are unlikely to go lower, as mortgage experts have predicted further increases at the end of this year and into next year.
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:
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
With 30-, 20- and 15-year refinance rates holding steady near bargain-low territory for six days in a row, homeowners still have time to save on a refinance ahead of further predicted rate increases. Homeowners who took out a mortgage in 2019 or before potentially stand to save even more, as pre-pandemic purchase rates were higher than current refinance rates. If you’re considering refinancing an existing home, check out what refinance rates look like:
- 30-year fixed-rate refinance: 3.125%, unchanged
- 20-year fixed-rate refinance: 2.875%, unchanged
- 15-year fixed-rate refinance: 2.375%, unchanged
- 10-year fixed-rate refinance: 2.375%, up from 2.250%, +0.125
Rates last updated on Dec. 15, 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 much can I borrow for a mortgage?
It’s critical to have an idea of how much you can afford to borrow for a mortgage before you begin home shopping or make an offer on a house.
Generally, the 28/36 rule is a good measure of how much you can afford to borrow without strapping your finances. The rule states that your mortgage payment, including taxes and insurance, shouldn’t be more than 28% of your gross monthly income. And all your debts, including your mortgage and other monthly expenses like car and student loan payments, shouldn’t exceed 36% of your gross monthly income.
For example, if your gross monthly income is $6,250 (annual salary of $75,000), you should be able to afford a monthly payment of $1,750. And your total monthly debt load shouldn’t exceed $2,250.
A general rule of thumb is that you shouldn’t take out a mortgage that’s two to two and half times your gross annual income. So in the above scenario, the maximum you should borrow to buy a house would be $187,500.
Ultimately, lenders determine how much you can afford to borrow by weighing your income, debt, assets, credit and other financial factors.
Current mortgage rates
Today’s average mortgage interest rate dropped to 2.656% for the second time this week and is lower than this same time last week.
Current 30-year mortgage rates
The current interest rate for a 30-year fixed-rate mortgage is 3.125%. This is the same as 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 2.875%. This is the same as 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 2.375%. This is the same as 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 2.250%. 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 Dec. 15, 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: 3.125%, the same as last week
- 20-year fixed mortgage rates: 2.875%, the same as last week
- 15-year fixed mortgage rates: 2.375%, the same as last week
- 10-year fixed mortgage rates: 2.250%, down from 2.375% last week, -0.125
Rates last updated on Dec. 15, 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.
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.