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Current 20-year mortgage rates
Advertiser Disclosure Advertiser Disclosure
The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where and in what order products appear. This table does not include all companies or all available products. Bankrate does not endorse or recommend any companies. Zach Wichter is a former mortgage reporter at Bankrate. He previously worked on the Business desk at The New York Times where he won a Loeb Award for breaking news, and covered aviation for The Points Guy. On Sunday, November 13, 2022, the national average 20-year fixed mortgage APR is 6.68%. The average 20-year refinance APR is 6.67%, according to Bankrate's latest survey of the nation's largest refinance lenders. At Bankrate we strive to help you make smarter financial decisions. While we adhere to strict , this post may contain references to products from our partners. Here's an explanation for . ON THIS PAGE Important information about our rate table The above mortgage loan information is provided to, or obtained by, Bankrate. Some lenders provide their mortgage loan terms to Bankrate for advertising purposes and Bankrate receives compensation from those advertisers (our "Advertisers"). Other lenders' terms are gathered by Bankrate through its own research of available mortgage loan terms and that information is displayed in our rate table for applicable criteria. In the above table, an Advertiser listing can be identified and distinguished from other listings because it includes a "Next" button that can be used to click-through to the Advertiser's own website or a phone number for the Advertiser. Each Advertiser is responsible for the accuracy and availability of its own advertised terms. Bankrate cannot guaranty the accuracy or availability of any loan term shown above. However, Bankrate attempts to verify the accuracy and availability of the advertised terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. Advertisers may have different loan terms on their own website from those advertised through Bankrate.com. To receive the Bankrate.com rate, you must identify yourself to the Advertiser as a Bankrate.com customer. This will typically be done by phone so you should look for the Advertisers phone number when you click-through to their website. In addition, credit unions may require membership. If you are seeking a loan for more than $548,250, lenders in certain locations may be able to provide terms that are different from those shown in the table above. You should confirm your terms with the lender for your requested loan amount. The loan terms (APR and Payment examples) shown above do not include amounts for taxes or insurance premiums. Your monthly payment amount will be greater if taxes and insurance premiums are included. If you have used Bankrate.com and have not received the advertised loan terms or otherwise been dissatisfied with your experience with any Advertiser, we want to hear from you. Please to provide your comments to Bankrate Quality Control. Weekly national mortgage rate trends
Mortgages Refinance 20 year fixed refinance 7.26% 10 year fixed refinance 6.55% 30 year fixed refinance 7.24% Today s 20-year mortgage rates
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 interest rate table is updated daily to give you the most current rates when choosing a 20-year fixed mortgage loan. Purchase Refinance Product Interest Rate APR 6.90% 6.91% 6.66% 6.68% 6.20% 6.24% 6.24% Rates as of Sunday, November 13, 2022 at 6:30 AM Product Interest Rate APR 6.87% 6.89% 6.65% 6.67% 6.17% 6.20% 6.20% 6.22% Rates as of Sunday, November 13, 2022 at 6:30 AM
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 for a wide variety of purchase loans. The interest rate table below is updated daily to give you the most current purchase 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 .
Bankrate has been the authority in personal finance since it was founded in 1976 as the "Bank Rate Monitor," a print publication for the banking industry. Bankrate has been surveying and collecting mortgage rate information from the nation's largest lenders for more than 30 years. Hundreds of top publications, such as The New York Times, Wall Street Journal, CNBC and others, depend on Bankrate as a trusted source of financial information, so you know you're getting information you can trust. Pros and cons of 20-year mortgages
These shorter loans are a compromise compared to the more popular 30- and 15-year terms. Compared to a 30-year loan, you'll pay down your balance quickly, while paying less interest to your lender. On the other hand, if you're struggling to afford your monthly payment, a 20-year loan might pose a challenge. That's because a 20-year loan's monthly payments will be higher than a 30-year loan for the same amount. Pros
You'll pay off your mortgage faster with a 20-year mortgage compared with a 30-year mortgage, allowing you to build equity and own your home free and clear sooner. You can experience accelerated 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
Your monthly payments will be higher than they would be with a 30-year loan, meaning that you may experience a squeeze if you experience a job loss or decrease in income. You may have to settle for a less-expensive home. You'll have less cash on hand for things like emergencies and retirement. How to find the best mortgage for you
Once you've settled on the length of the mortgage, it's time to do your research to find the best mortgage for you (see these ). This due diligence will mean comparing mortgage rates from , which might include mortgage brokers, traditional banks and . It's smart to prepare for your mortgage search by reviewing your credit report to confirm it's correct and evaluating your financial landscape to determine how much you can afford to put toward a home each month. "The key is to make sure the client is comfortable with their budget and payment," says Reiling. Since you'll have a tighter repayment schedule compared with a 30-year loan, lenders will probably want to see that you have a higher income level in addition to strong credit and savings. While there is no official "best season" to shop for a mortgage since rates are driven by the market and overall economic landscape, Reiling says, "Banks are much more competitive on rates when business is slow, which tends to be in the dead of winter around January or February."
Shopping around is crucial. By comparing at least three mortgage offers, you can find the best combination of rate and fees, and potentially save thousands of dollars over the life of the loan.
If you're interested in a 20-year mortgage, but high monthly payments and more stringent income criteria aren't for you, you still have options for becoming a homeowner. FHA loans
FHA loans are known for their flexible credit requirements. You can obtain a 3.5 percent down payment loan with a credit score as low as 580, and you can obtain a 10 percent down payment loan with a credit score as low as 500. FHA loan interest rates may be competitive compared to those for conventional mortgages. 30-year mortgages
A 30-year mortgage will allow you to build equity in your home with lower, more affordable monthly payments. You may be able to buy a more expensive home since the payments will be spread out over a longer period of time. A lower payment will also allow you more room in your budget in the event of emergencies. If you want an accelerated repayment schedule without the consistently higher monthly payments involved with a 20-year mortgage, there are a number of options available. Make extra payments towards the principal balance
You can ask your lender or loan servicer if you can pay extra against the principal each month, or issue an extra payment annually. Make sure that your lender understands that you want the extra payments applied towards your principal, not your interest. Make lump-sum payments towards the principal
If you receive an unexpected windfall, such as a work bonus or an inheritance, you might be able to use the funds to make an additional payment towards the principal. Frequently asked questions about 20-year mortgages
A 20-year is a loan that amortizes over 20 years at a fixed interest rate. The 20-year mortgage is often overlooked by borrowers and lenders, but this unusual loan term comes with a distinct advantage. Compared to the more popular , a 20-year loan lets the homeowner shave a decade off the term - and save significantly on interest payments over the life of the mortgage. A 20-year mortgage is a middle ground between the longer, standard term and other short-term options like the popular or the more aggressive .
Here's how monthly payments for principal and interest would compare for a $300,000 mortgage: Loan Type Interest Rate Total Cost Monthly Payment Total Interest Paid 10-Year Mortgage 2.75% $343,485 $2,862 $43,485 15-Year Mortgage 2.92% $370,850 $2,060 $70,850 20-Year Mortgage 3% $399,380 $1,663 $99,380 30-Year Mortgage 3.75% $500,270 $1,389 $200,270
"A 20-year-fixed is good for someone who is refinancing for a lower rate and doesn't want to extend their term back to 30 years. This way, if they are five to 10 years into payments on their current mortgage, they can continue making payments with the hopes of paying off the loan within their target time period," says David Reiling, CEO of Sunrise Banks, based in Saint Paul, Minnesota. "In a purchase situation, if a client has a goal of paying off their home in less than 30 years, a 20-year fixed is a good alternative that offers lower monthly payments, as opposed to a 15-year mortgage." To determine if a 20-year mortgage is right for you, do the math using the . 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.
The costs and fees 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 in fees, including origination fees and third-party costs like title insurance. It's possible to wrap these fees into the loan, but doing so will cost you in the long run because you'll wind up paying more in interest. Learn more about fixed-rate loans
Written by Zach Wichter mortgage reporter for Bankrate
Zach Wichter is a mortgage reporter at Bankrate. He previously worked on the Business desk at The New York Times where he won a Loeb Award for breaking news, and covered aviation for The Points Guy. Mortgage rates in other states