I set the update rate to 30 Hz, 10 hz is enough to perform the smoothing. Basically I never snap the actor at the predicted location, if desync is inside a margin of error 0.5% of correction is applied and if desync is more than 50% I apply from 40% to 70% of correction. Correction percentage is lerped based on the desync amount.
Will do a test with a friend to see how it behaves in a real network environment.