Today's mortgage rates open week with a drop in longer terms | Oct. 25, 2021

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Check out the mortgage rates for Oct. 25, 2021, which are mixed from last Friday. (iStock)

Based on data compiled by Credible, mortgage rates fell for longer terms and held steady for shorter ones since last Friday.

  • 30-year fixed mortgage rates: 3.125%, down from 3.250%, -0.125
  • 20-year fixed mortgage rates: 2.750%, down from 2.875%, -0.125
  • 15-year fixed mortgage rates: 2.375%, unchanged
  • 10-year fixed mortgage rates: 2.250%, unchanged

Rates last updated on Oct. 25, 2021. These rates are based on the assumptions shown here. Actual rates may vary.

What this means: With rates for 30-year mortgages hovering above or just below 3% for the past 15 days, homebuyers might want to look to 20-year interest rates for their best bargain. Rates for that term have held steady in bargain territory for weeks. A 20-year repayment term can provide buyers with a lower monthly mortgage payment while still providing interest savings over the life of their loans.

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

Today’s mortgage refinance rates mirror purchase rates, with longer terms ticking down while shorter terms held steady. If you’re considering refinancing an existing home, check out what refinance rates look like:

  • 30-year fixed refinance rates: 3.125%, down from 3.250%, -0.125
  • 20-year fixed refinance rates: 2.750%, down from 2.875%, -0.125
  • 15-year fixed refinance rates: 2.375%, unchanged
  • 10-year fixed refinance rates: 2.250%, unchanged

Rates last updated on Oct. 25, 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 do I choose a mortgage lender?

A mortgage is likely the largest debt you’ll take on in life — one that will take decades to repay. So it’s critical to make sure you choose a mortgage lender and mortgage that work best for your needs and financial situation.

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

  1. Comparison shop. Compare rates and terms from multiple lenders. Just as you comparison shop for less important purchases, you should compare offers from several lenders. A Freddie Mac study found that adding just one quote to your mortgage search could save you $1,500 over the life of a loan. Adding five could save you about $3,000. Credible makes it easy to compare your prequalified rates from multiple lenders.
  2. Consider a mortgage broker. Mortgage brokers can do the legwork for you when it comes to finding a loan deal. But be aware that mortgage brokers typically make money by charging a small percentage of the loan for their services.
  3. Leverage relationships. Explore mortgage offerings from banks and financial institutions you already do business with. Loyalty and familiarity may work in your favor in negotiating a good mortgage deal.
  4. Look for referrals. Ask friends, family, coworkers, and neighbors for referrals, and about their experiences with different lenders.

Current mortgage rates

This is the fourth straight day that 30-year mortgage rates have been higher than 3%. The average mortgage interest rate across all repayment terms is 2.625%.

Current 30-year mortgage rates

The current interest rate for a 30-year fixed-rate mortgage is 3.125%. This is down from 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 2.750%. This is down from 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 2.375%. 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 2.250%. 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 Oct. 25, 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 up for the longest and shortest terms compared to this time last week.

  • 30-year fixed mortgage rates: 3.125%, up from 2.990% last week, +0.135
  • 20-year fixed mortgage rates: 2.750%, the same as last week
  • 15-year fixed mortgage rates: 2.375%, the same as last week
  • 10-year fixed mortgage rates: 2.250%, up from 2.125% last week, +0.125

Rates last updated on Oct. 25, 2021. These rates are based on the assumptions shown here. Actual rates may vary.

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

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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 lender credits?

Even if you get a zero-down payment or low-down payment mortgage, you’ll typically still need cash to cover closing costs like a home appraisal and title search. In fact, closing costs are generally equal to 3% to 6% of your home’s price, although the exact percentage can vary from lender to lender.

Lender credits are a way for borrowers to roll those closing costs into their mortgage, and avoid paying those costs upfront at closing. If your lender offers the option, you can use lender credits to have the lender absorb those closing costs for you. In exchange, you’ll agree to pay a higher interest rate.

Be wary of lender credits. Not having to pay cash at closing may sound like a great idea. But remember, you’ll be paying more in interest over the life of the loan. You’ll almost certainly end up paying more than you would have if you’d paid the closing costs upfront.

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 among insurers, 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 moneyexpert@credible.com and your question might be answered by Credible in our Money Expert column.