Today's mortgage rates tumble for three out of four terms

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Check out the mortgage rates for August 25, 2021, which are trending down from yesterday. (iStock)

Based on data compiled by Credible, mortgage rates have fallen since yesterday.

30-year fixed mortgage rates: 2.750%, down from 2.875%, -0.125
20-year fixed mortgage rates: 2.500%, down from 2.625%, -0.125
15-year fixed mortgage rates: 2.125%, unchanged
10-year fixed mortgage rates: 2.000%, down from 2.125%, -0.125

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

What this means: Today’s mortgage rates fell across three out of four terms since yesterday, providing multiple opportunities for homebuyers to save on interest whether they’re seeking a longer or shorter term. Perhaps the best bargain of the bunch are the 20-year rates, which dropped to 2.500%. Homebuyers can finance into this term while reaping interest savings and keeping their monthly payments manageable.

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 20-year mortgage refinance rates dropped to 2.500%, representing an exceptional bargain for homeowners looking to refinance and reap interesting savings while keeping their monthly payment manageable. Though 20-year rates have been this low numerous times throughout 2021, they fluctuate so much from day to day that it’s very likely they could go up again before the end of the week. Homeowners who refinance now can lock in this lower rate and save even more on interest. Meanwhile, rates for 15-year and 10-year terms have held at 2.125% for 27 days in a row. If you’re considering refinancing an existing home, check out what refinance rates look like:

30-year fixed-rate refinance: 2.875%, unchanged
20-year fixed-rate refinance: 2.500%, down from 2.625%, -0.125
15-year fixed-rate refinance: 2.125%, unchanged
10-year fixed-rate refinance: 2.125%, unchanged

Rates last updated on August 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 to get low mortgage rates

Mortgage and refinance rates are affected by many economic factors, like unemployment numbers and inflation. But your personal financial history will also determine the rates you’re offered.

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

Improving your credit score
Paying down debt
Making a bigger down payment

It’s also a good idea to compare rates from different lenders to find the best rate for your financial goals. According to research from Freddie Mac, borrowers can save $1,500 on average over the life of their loan by shopping for just one additional rate quote — and an average of $3,000 by comparing five rate quotes.

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

Current mortgage rates

Today’s average mortgage interest rate sits at just 2.344%, and average mortgage rates have held well below 2.5% for one month.

Current 30-year mortgage rates

The current interest rate for a 30-year fixed-rate mortgage is 2.750%. This is down 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 2.500%. 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 2.125%. 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 2.000%. 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.

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Rates last updated on August 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 mostly down compared to this time last week.

30-year fixed mortgage rates: 2.750%, down from 2.875% last week, -0.125
20-year fixed mortgage rates: 2.500%, down from 2.625% last week, -0.125
15-year fixed mortgage rates: 2.125%, the same as last week
10-year fixed mortgage rates: 2.000%, down from 2.125% last week, -0.125

Rates last updated on August 25, 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 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.

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 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 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.