Todays mortgage rates fall, 15-year terms below 6%
Based on data compiled by Credible’s website, mortgage rates for home purchases have fallen across all key terms since yesterday.
- 30-year fixed mortgage rates: 6.490%, down from 6.750%, -0.260
- 20-year fixed mortgage rates: 6.375%, down from 6.625%, -0.250
- 15-year fixed mortgage rates: 5.625%, down from 6.250%, -0.625
- 10-year fixed mortgage rates: 5.625%, down from 6.000%, -0.375
Rates last updated on June 1, 2023. These rates are based on the assumptions shown here. Actual rates may vary. Credible, a personal finance marketplace, has 5,000+ Trustpilot reviews with an average star rating of 4.7 (out of a possible 5.0).
What this means: Mortgage rates have dropped for all key terms. Rates for 20- and 30-year terms have fallen by a quarter of a percentage point to 6.375% and 6.49%, respectively. Meanwhile, rates for 10-year terms have fallen by over a quarter of a percentage point to 5.625%. Rates for 15-year terms decreased the most today, dropping by over half of a percentage point to 5.625%. Homebuyers interested in a small monthly payment should consider 20-year terms, as their rates are lower than those of 30-year terms. Borrowers who would rather save the most on interest should instead consider either of today’s lowest rates, 10- and 15-year terms at 5.625%.
To find great mortgage rates, start by using Credible’s secured website, which can show you current mortgage rates from multiple lenders without affecting your credit score. You can also use a mortgage calculator to estimate your monthly mortgage payments.
If you’re thinking about getting a mortgage, you can compare home loan lenders easily via Credible’s marketplace.
Based on data compiled by Credible, mortgage refinance rates have fallen for three key terms and risen for another since yesterday.
- 30-year fixed-rate refinance: 6.490%, down from 6.990%, -0.500
- 20-year fixed-rate refinance: 6.125%, down from 6.375%, -0.250
- 15-year fixed-rate refinance: 5.625%, down from 6.125%, -0.500
- 10-year fixed-rate refinance: 6.125%, up from 6.000%, +0.125
Rates last updated on June 1, 2023. These rates are based on the assumptions shown here. Actual rates may vary. With 5,000 reviews, Credible maintains an “excellent” Trustpilot score.
What this means: Mortgage rates have fallen by half of a percentage point for 15- and 30-year terms, bringing their rates to 5.625% and 6.49%, respectively. Additionally, rates for 20-year terms have dropped by a quarter of a percentage point to 6.125%. Meanwhile, rates for 10-year terms have edged up to 6.125%. Homeowners looking to maximize their interest savings should consider today’s lowest rate,15-year terms at 5.625%. Borrowers who would rather have a smaller monthly payment should instead consider 20-year terms over 30-year terms, as their rates are over a quarter of a percentage point lower.
If you’re thinking about refinancing a home loan, you can compare mortgage refinancing lenders easily via Credible’s website.
How to get low mortgage rates
You can take the following steps to secure the lowest possible mortgage rate:
- Improve your credit score: Aim for a score in the 700s or higher.
- Eliminate your debt: Focus on tackling debt to lower your debt-to-income (DTI) ratio. A lower DTI ratio increases your chances of receiving a low mortgage rate and loan approval.
- Make a larger down payment: Putting more money down lowers the lender’s risk, and you may receive a more favorable rate as a result.
You’ll also want to compare rates from different lenders before settling on a single loan. Credible can help you do this. 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.
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:
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 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 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 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.
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