What is a 20-year mortgage?

A 20-year fixed-rate mortgage is a home loan paid off over 20 years with the same interest rate. It comes with a higher monthly payment compared to a 30-year loan, but typically a slightly lower rate, saving you money on interest.

What are the alternatives to a 20-year mortgage?

The alternatives to a 20-year mortgage include: 30-year loans 15-year loans 10-year loans You can also get a 30-year loan to take advantage of the lower monthly payments, then make additional payments when your budget allows. This can help you get a similar benefit to the 20-year loan: paying off your mortgage faster.

How much does a 20-year mortgage cost?

The closing costs with a 20-year mortgage are similar to those of mortgages with other repayment terms. Expect to pay an average of about 2 to 4 percent of the loan’s principal amount at closing in fees, including the origination fee and third-party costs like title insurance. It’s possible to wrap these fees into the loan and pay them off gradually, but doing so will cost you in the long run: They augment the loan amount, so you'll wind up paying more in interest.

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Current 20-year mortgage rates

Written by

Jeff Ostrowski

Edited by

Laurie Richards

Edited by

Laurie Richards

On Wednesday, December 25, 2024, the national average 20-year fixed mortgage APR is 6.97%. The average 20-year refinance APR is 6.97%, according to Bankrate's ... latest survey of the nation's largest mortgage lenders.

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Weekly national mortgage interest rate trends

Current mortgage rates

	20 year fixed	6.54%
	10 year fixed	5.99%
	30 year fixed	6.74%

20-year mortgage rates today

The table below brings together a comprehensive national survey of mortgage lenders to help you know what are the most competitive 20-year mortgage rates. This table is updated daily to give you the most current interest rates and APRs when choosing a 20-year fixed mortgage loan.

20-year mortgage vs. other loan terms

If you’re looking to pay down your mortgage quickly, a 20-year mortgage offers a good compromise. The rates are lower than those for 30-year loans, so you’ll pay less interest over the life of the loan. While 20-year rates are higher than those for 15-year mortgages, the monthly payments on a 20-year loan are lower.

Product	Interest Rate	APR
20-Year Fixed	6.92%	6.97%
30-Year Fixed	7.00%	7.04%
15-Year Fixed	6.32%	6.39%
10-Year Fixed	6.19%	6.25%

Rates as of Wednesday, December 25, 2024 at 6:30 AM

Product	Interest Rate	APR
20-Year Fixed	6.92%	6.97%
30-Year Fixed	7.02%	7.07%
15-Year Fixed	6.31%	6.38%
10-Year Fixed	6.20%	6.26%

Rates as of Wednesday, December 25, 2024 at 6:30 AM

Bankrate displays two sets of rate averages that are produced from two surveys we conduct: one daily (“overnight averages”) and the other weekly (“Bankrate Monitor averages”).

For Bankrate’s overnight averages, APRs and rates are based on no existing relationship or automatic payments. To determine the Bankrate Monitor mortgage rate averages, Bankrate collects APRs and rates from the 10 largest banks and thrifts in 10 large U.S. markets based on no existing relationship or automatic payments.

Our advertisers are leaders in the marketplace, and they compensate us in exchange for placement of their products or services when you click on certain links posted on our site. This allows us to bring you, at no charge, quality content, competitive rates and useful tools.

Learn more about Bankrate’s rate averages, editorial guidelines and how we make money.

Should you get a 20-year mortgage?

These shorter loans offer an alternative to the more popular 30- and 15-year terms. Compared to a 30-year loan, you’ll pay down your balance quicker, while paying less interest to your lender. On the other hand, a 20-year loan’s monthly payments will be higher than a 30-year loan for the same amount.

If you want to pay off your home in less than 30 years, a 20-year mortgage offers lower monthly payments than a 15-year mortgage. To determine if a 20-year mortgage is right for you, do the math using the Bankrate Mortgage Calculator. Get the latest interest rates for 20-year fixed-rate mortgages above. Be sure to check back regularly, as rates do change.

Also, think about your own financial goals and how a mortgage fits in. If it’s more important to you to lower your monthly payments to stretch your monthly budget, a longer-term mortgage is probably a better choice. But if you’d prefer paying less in interest even if it means higher costs each month, a 20-year loan could do the trick.

Key questions to ask:

Do you value paying down your mortgage quickly? If so, a 20-year mortgage can make sense.
How much room do you have in your budget? A 20-year loan offers lower payments than a 15-year mortgage.

Pros of 20-year mortgages

You’ll pay off your mortgage faster.
You’ll accelerate the loan repayment without making payments as high as you would with a 10- or 15-year mortgage.
You can obtain a lower interest rate and save thousands over the life of the loan.

Cons of 20-year mortgages

Your monthly payments will be higher than they would be with a 30-year loan.
It offers less buying power.
You’ll have less cash on hand month to month.

A 20-year mortgage means 10 fewer years spent paying interest compared to a 30-year mortgage. For many loans, that can mean a savings of well into six figures. Of course, the specific amount you’d save depends on the interest rate and loan amount. — Andrew Dehan, Writer, Home lending

How to get the best 20-year mortgage rate

Prepare for your home search by reviewing your credit and finances to determine whether you need to up your credit score and how much you can afford to put toward a home each month. Research current mortgage rates so you know what to expect when you rate-shop.

When you’re ready to get a 20-year loan, the rule of thumb is to compare at least three mortgage offers by:

Getting preapproved: Collect quotes from three or more mortgage lenders — ideally on the same day because rates can change quickly. Lenders set your mortgage rate based on your credit score, debt-to-income (DTI) ratio and other factors, including the size of your down payment. If you have some flexibility around those variables, you might find a better deal.
Comparing the annual percentage rates (APR): The APR reflects some of the expenses you’ll incur for the loan, such as the origination fee and any mortgage points, in addition to the interest rate.
Considering the lender’s ratings and your experience: Aside from the numbers, evaluate other factors such as convenience or the lender’s responsiveness. Take a look at what other borrowers have had to say about the lender, too.

20-year mortgage FAQ

A 20-year fixed-rate mortgage is a home loan paid off over 20 years with the same interest rate. It comes with a higher monthly payment compared to a 30-year loan, but typically a slightly lower rate, saving you money on interest.
The alternatives to a 20-year mortgage include:
You can also get a 30-year loan to take advantage of the lower monthly payments, then make additional payments when your budget allows. This can help you get a similar benefit to the 20-year loan: paying off your mortgage faster.
The closing costs with a 20-year mortgage are similar to those of mortgages with other repayment terms. Expect to pay an average of about 2 to 4 percent of the loan’s principal amount at closing in fees, including the origination fee and third-party costs like title insurance. It’s possible to wrap these fees into the loan and pay them off gradually, but doing so will cost you in the long run: They augment the loan amount, so you'll wind up paying more in interest.

Meet our Bankrate experts

Written by: Jeff Ostrowski, Principal Reporter, Mortgages

I cover mortgages and the housing market. Before joining Bankrate in 2020, I spent more than 20 years writing about real estate and the economy for the Palm Beach Post and the South Florida Business Journal. I’ve had a front-row seat for two housing booms and a housing bust. I’ve twice won gold awards from the National Association of Real Estate Editors, and since 2017 I’ve served on the nonprofit’s board of directors.

Additional mortgage resources

Mortgage resources: Explore the latest mortgage news and expert advice from Bankrate
How to get the best mortgage rate: When you’re ready to buy, these tips can help you find the best rate
Amortization calculator: Use Bankrate’s calculator to preview your loan amortization schedule and payoff date
How to get a mortgage: Prepare to apply for a mortgage with Bankrate’s 10-step guide