Compare current 20-year refinance rates

20-year refinance rates today

Lenders nationwide provide weekday mortgage rates to our comprehensive national survey to bring you the most current rates available. Here you can see the latest marketplace average rates — including 20-year mortgage refinance rates — for a wide variety of refinance loans. The interest rate table below is updated daily to give you the most current refinance rates when choosing a home loan. APRs and rates are based on no existing relationship or automatic payments. For these averages, the customer profile includes a 740 FICO score and a single-family residence. To learn more, see understanding Bankrate rate averages.

Pros and cons of a 20-year mortgage refinance

Pros of a 20-year mortgage refinance

• Paid off faster than a traditional 30-year mortgage: Since you'll have a shorter time frame than a 30-year mortgage, you'll pay off your mortgage sooner  — 10 years faster, to be exact. That means one fewer thing to worry about, and it will free up a large chunk of change you can use for other expenses and money goals.
• Generally have a lower interest rate than longer-term loans: Typically, the shorter the term, the lower the interest rate. Interest rates for a 20-year mortgage will have a lower interest rate than a 30-year mortgage.
• Less interest paid over the life of the loan than a 30-year mortgage: Because the interest rate is lower on a 20-year mortgage, you'll not only pay off your home loan sooner but you'll also be forking over less in interest over the loan term.
• More affordable than shorter-term loans like 10- or 15-year mortgages: Because the life of the loan is stretched out for a longer time than a 10- or 15-year mortgage, your loan payments will be lower. In turn, a 20-year mortgage can be more affordable for your monthly budget.

Cons of a 20-year mortgage refinance

• Higher monthly payments than a 30-year mortgage: While the monthly payments for a 20-year mortgage are smaller than a 10- or 15-year mortgage, you can expect to pay more than you would for a 30-year mortgage. In turn, it's less affordable as you'll need to pour more cash into paying off your house each month.
• More interest paid over the life of the loan than on a shorter mortgage: You'll be paying more in interest fees on a 20-year mortgage than if you had a 10- or 15-year mortgage, which means it'll be more expensive.

20-year mortgage vs. other loan terms

While a 20-year mortgage means you'll pay off your loan faster than a 30-year mortgage, it also means you'll have higher monthly payments. The lower monthly payments that come with a 30-year mortgage mean you might be able to borrow a larger amount, as well.

Even if the total you'd like to borrow would be the same for a 20-year mortgage, you might have an easier time qualifying for a longer-term loan because of the difference in monthly payments.

When stacking a 20-year mortgage against a 10- or 15-year mortgage, it will take you longer to pay off the 20-year mortgage, but the monthly payments will be more affordable.

Is a 20-year mortgage refinance right for me?

Refinancing into a 20-year mortgage could make sense for you if:

• You already have a 10- or 15-year mortgage and are struggling to meet the monthly payments. Taking out a new loan with a longer repayment period could free up some cash in your budget.
• You have an adjustable-rate mortgage (ARM) nearing the end of its initial term. A 20-year fixed mortgage will give you more stability since your rate won’t change for the lifetime of the loan.
• You can afford the cost of the new loan. It’s important to look closely at your household income and whether your mortgage plus additional housing expenses — think homeowners insurance and utilities — can fit your new payment into your current budget comfortably.

Keep in mind: You can pay off any mortgage loan at any pace you want. However, you'll need to make the minimum payment. By making extra principal payments each month (check with your lender on how this is done) you can turn a 30-year loan into a 20-year, a 15-year or a 10-year mortgage. This way if you need extra cash, you can skip the additional principal payment any month you like.

When considering a refinance, it’s also a good idea to explore different kinds of loans and loan terms to determine what’s best for you and your budget. Refinancing into a conventional fixed-rate loan from an FHA loan could mean significant savings since these government-insured loans usually have costly insurance premiums.

Other loans such as a VA home loan or ARM (adjustable rate mortgage) don’t usually have these same insurance costs, but refinancing can still make sense for borrowers who can get a low enough rate to quickly offset their refinancing costs.

Alternatives to a 20-year mortgage refinance

If you want to pay down your mortgage but don’t want to be locked into higher monthly payments with a shorter term, consider making extra principal payments. You can do this several ways, including with biweekly payments, which can add up to sizable savings over the life of a loan.

Additional refinance resources

• Refinancing resources
• Mortgage refinance calculator
• Best refinance lenders
• Guide on how to refinance

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.

Read more from Jeff Ostrowski

Edited by: Laurie Richards, Editor, Home Lending

I’ve spent five years in writing and editing roles, and I now focus on mortgage, mortgage relief, homebuying and mortgage refinancing topics. I’m most interested in providing resources for aspiring first-time homeowners to help demystify the homebuying process. In 2021, I earned a Poynter ACES Certificate in Editing. I have an MA in English. 

Read more from Laurie Richards