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We want this to be a “win-win” situation. So, we only want to get paid if we bring you value in the form of finding a mortgage lender that works for you. After you review and select a lender participating on our platform, with your permission, we will transmit the information you shared with us to your lender, enabling you to complete a mortgage application with them. Upon transmission, your selected lender will compensate us for obtaining your information. Generally, our lenders pay us and incorporate the cost of our services as part of the final interest rate on your loan, or in your loan amount. You don’t pay anything to Credible if your loan does not close. This is common practice in mortgage transactions where you find your lender through a lender-review platform like ours, also known as a “lead generator.”

20 Year Fixed Mortgage Rates

See current mortgage rates from some of the top lenders. Compare rates and product features instantly.

Compare 20-year mortgage rates from top lenders

With so many mortgage lenders competing for your business, you’ll want to shop around for the best mortgage rate. Credible can help with that. Enter some basic information about yourself and the property you’re looking to purchase in the table below to get started. We’ll generate loan options and show you prequalified rates from our partner lenders — all without affecting your credit score.

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  1. Get pre-approved:

    With Credible, it only takes 3 minutes to see if you qualify for an instant streamlined pre-approval letter and personalized rates, without affecting your credit score.

  2. Compare lenders and choose rate:

    Homebuyers can compare current mortgage rates and loan features from multiple lenders to choose your home loan. Our team of licensed mortgage loan officers is available to answer any questions.

  3. Submit your documents:

    Credible's automated document collection process takes the stress out of applying for a mortgage. You’ll find it’s easy to track your loan all the way through closing.

  4. Finish your loan with us:

    With Credible, you can complete the whole mortgage process online. We have a team of dedicated mortgage experts ready to help you if you need it.

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What is a 20-year fixed-rate mortgage?

If you get a 20-year mortgage, you have the potential to save more money in interest — compared to a longer-term loan — and still keep monthly payments manageable.

A 20-year fixed-rate mortgage is a home loan with a 20-year repayment term. Because the interest rate is fixed and the loan is fully amortizing, your payments stay the same for all 20 years. Twenty-year mortgages are less common than 15- and 30-year mortgages.

Learn More: What Is a Mortgage Rate and How Do They Work?

PROS

Advantages of a 20-year fixed-rate mortgage

Here are some of the advantages of a 20-year fixed-rate mortgage that you should consider:

  1. Lower interest rate:

    In general, 20-year mortgage rates tend to be lower than what you’d see with a 30-year mortgage. As a result, you have the potential to save money in the long run by paying less in interest.

  2. Faster equity:

    On top of a potentially lower interest rate, a 20-year mortgage also allows you to build equity faster. With more of your monthly payment going toward your principal, you can build equity in your home faster. This will allow you the chance to tap into it later, or get a larger chunk of capital when you sell.

  3. Manageable payments:

    With a 15-year fixed-rate mortgage, the monthly payment might be higher than you’d like. A 20-year mortgage offers a smaller monthly payment than a 10- or 15-year mortgage.

Keep Reading: 

What Is a Mortgage Rate and How Do They Work?

CONS

Disadvantages of a 20-year fixed-rate mortgage

Here are the downsides you need to weigh before you take on a 20-year mortgage:

  1. Slightly higher monthly payments:

    Monthly payments, even with a lower 20-year mortgage rate, will likely be higher than those of a 30-year mortgage. If you’re concerned about monthly cash flow, getting a 20-year home loan might not be the best option for you.

  2. Somewhat limited purchase price:

    In some cases, you might get approved for a lower loan amount as compared to a 30-year mortgage. This is due to the fact that the slightly higher monthly payments can impact your debt-to-income ratio and lead to a lower purchase price. If you want to be approved for a more expensive home, you might need to consider a 30-year mortgage.

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How to shop for a 20-year fixed-rate mortgage

When looking for a lender, be sure to consider 20-year mortgage rates too. You might have a harder time finding lenders willing to offer 20-year loans, but you can use Credible to see what terms are available.

Keep in mind that the best rates are reserved for those who have excellent credit and can put a significant amount of money down. To qualify for the best 20-year fixed mortgage rates, work on improving your credit score, as well as reducing your debt.

Carefully consider your situation and compare multiple lenders to ensure that you’re getting the best possible rate. Credible makes this easy. You can see personalized prequalified rates from several of our partner lenders in just three minutes — all without leaving our platform.

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By Chris Jennings

As a Credible authority on mortgages, Chris Jennings covers topics including home loans and mortgage refinancing. His work has appeared in Fox Business and GOBankingRates.
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Freddie Mac doesn’t track 20-year mortgage rates specifically. In general, though, the average rate for 20-year loans is slightly lower than rates for 30-year loans and slightly higher than 15-year loans. Rates on all three loan terms fluctuate in lockstep.

Mortgage rates for 30-year fixed loans have hovered around 3% since the start of the COVID-19 pandemic, and 15-year fixed loans have averaged about 2.6% in the same time, according to data from Freddie Mac’s Primary Mortgage Market Survey. The average rate for a 20-year loan would fall somewhere in between.

In 2011, the average rates for 15-year and 30-year mortgages were 3.68% and 4.45%, respectively. Even those rates are relatively low, especially compared to the peaks set in the early 1980s, when mortgage rates reached into the high teens.

Market conditions contribute to interest-rate fluctuations, but monetary policies implemented by the Federal Reserve are the primary driver. Although the Fed doesn’t set mortgage rates, it does set a federal funds rate, which is the rate banks use to make short-term loans to each other.

The federal funds rate, in turn, influences the rates banks charge to loan you money. When the federal funds rate goes up, mortgage rates tend to go up as well.

In times of economic crisis, the Fed may reduce the federal funds rate. For example, in response to the Great Recession, the Fed reduced the federal funds rate from 5.25% in September 2007 to between 0% and 0.25% in December 2008. The federal funds rate currently sits in that same range as the U.S. economy recovers from the effects of the COVID-19 pandemic.

Here are the average annual rates for 20-year fixed-rate loans over the last five years, according to data from Freddie Mac:

YearAverage Annual Rate
20203.11%
20193.94%
20184.54%
20173.99%
20163.65%

A good mortgage rate is one that’s substantially lower than the rates competing lenders are charging for. It’s important to compare at least three different lenders when shopping for a home loan. This will help you get a good rate on a 20-year mortgage, and it could end up saving you thousands of dollars in interest.

A lender’s mortgage rates aren’t set in stone. They vary depending on how risky a borrower you are, and that’s something you can control by:

  • Maximizing your credit score: Order a copy of your credit report. Correct any errors, and if you have unpaid collections, pay them off.

  • Paying down debt: Try to eliminate all of your current debt, such as car loans or credit cards, and keep average daily credit card balances low. You should also make sure you’re paying all of your bills on time.

  • Making a large down payment: The more you put down, the less risk you present to the lender. In turn, they’ll likely present you with a favorable mortgage rate. Plan to make a 20% down payment on your home to avoid private mortgage insurance.

Mortgage fees are usually paid at closing. The names of the fees might vary somewhat by lender, but here’s a list of common fees to be aware of:

  • Origination fee: Lender fee for organizing and putting together your loan. This is generally 0.5% to 1.5% of the total loan amount.

  • Application fee: Lender fee for reviewing and processing your loan application.

  • Appraisal: The fee you pay to cover the home appraisal.

  • Mortgage points: This is an optional charge. You can pay points upfront in exchange for a lower interest rate.

  • Mortgage insurance: Insurance premium required if you put down less than 20%. This premium is factored into your mortgage payment until you reach 20% home equity, in which case you can ask your lender to remove it.

  • Prepaid/escrow expenses: This includes any interest that accrues before your first payment period, your first year’s homeowners insurance premium, and escrow deposits to cover future homeowners insurance and property tax payments.

Generally, the longer the term, the higher the interest rate. That’s because loans with shorter terms present less of a risk to lenders.

Here’s how the terms of a 20-year fixed-rate mortgage might compare to the terms of other mortgage loans:

Loan termLoan amountFixed ratePayment amountTotal interest paid over life of loanTotal paid over life of loan
10 years$200,0002.625%$1,896.79$27,614.54$227,614.54
15 years$200,0002.625%$1,345.38$42,168.20$242,168.20
20 years$200,0002.875%$1,072.03$57,286.51$257,286.51
30 years$200,0003.250%$803.30$89,188.38$289,188.38

As you can see, the shorter the loan term, the lower the rate and the less you’ll pay in interest over the life of the loan. The catch is that you’ll also have a higher payment.

Determining which loan term to pick comes down to your personal circumstances — figure out what you can afford to pay on a monthly basis, and find a loan that offers the best compromise between affordability and long-term savings. Credible can help you compare loan options from multiple lenders.

A 20-year mortgage can be a good compromise between a 15-year term and a 30-year term.

A 20-year fixed mortgage is a good choice if you:

  • Plan to own your home for many years

  • Can afford a slightly larger payment than you’d have with a 30-year loan but not as large as you’d have with a 15-year loan

  • Want consistent monthly payments and a predictable payoff date

A 20-year fixed mortgage probably isn’t a good idea if you:

  • Are on a tight budget and need to keep mortgage payments as low as possible

  • Plan to move within a few years and can get a better rate on an adjustable-rate mortgage

  • Can afford the higher monthly payments on a 10- or 15-year loan while still meeting your other financial obligations and goals

Choosing the best refinance option depends on your situation and the reason you’re refinancing. In general, you’ll only want to consider refinancing when you can get a mortgage rate at least one percentage point lower than your current rate.

A 20-year mortgagecould be the perfect compromise between a 15-year and 30-year mortgage. You’ll still save on interest compared to a 30-year loan, but without as high of a payment as you’d have with a 15-year loan.

You may also consider refinancing into a 30-year loan and making extra payments. This effectively lowers the amount of interest you’ll pay over the life of the loan while also offering the flexibility of a lower monthly payment if needed.

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