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Current 20-year mortgage rates

On Monday, December 05, 2022, the national average 20-year fixed mortgage APR is 6.45%. The average 20-year refinance APR is 6.43%, according to Bankrate's latest survey of the nation's largest refinance lenders.

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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.

Product Interest Rate APR
30-Year Fixed 6.54% 6.56%
20-Year Fixed 6.43% 6.45%
15-Year Fixed 5.90% 5.93%
10-Year Fixed 5.97% 5.99%

Rates as of Monday, December 05, 2022 at 6:30 AM

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 five kinds of mortgages to consider). This due diligence will mean comparing mortgage rates from several lenders, which might include mortgage brokers, traditional banks and online lenders. 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.”

Frequently asked questions about 20-year mortgages

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.

Read more from Zach Wichter