Current 20-year mortgage rates

• How Bankrate mortgage rates are calculated

  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 understanding Bankrate rate averages.

• Why trust Bankrate?

  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.

Top 5 Bankrate 20-year mortgage lenders

• Better.com
• Fairway Independent Mortgage Corporation
• Homeside
• AmeriSave Mortgage Corporation
• First Mortgage Direct

Methodology

Bankrate helps thousands of borrowers find mortgage and refinance lenders every day. To determine the top mortgage lenders, we analyzed proprietary data across more than 150 lenders to assess which on our platform received the most inquiries within a three-month period. We then assigned superlatives based on factors such as fees, products offered, convenience and other criteria. These top lenders are updated regularly.

• Better.com

  Better.com, an online mortgage lender, is available in the majority of states, and offers conventional and FHA loans.

  Strengths: Better.com’s digital home loan process allows you to get a preapproval in as little as three minutes and view 20-year and other mortgage rates online. The lender doesn’t charge origination or hidden fees, either.

  Weaknesses: If you’re looking for an in-person experience when you get a mortgage, you’ll need to look elsewhere, as Better.com has no brick-and-mortar locations. (The lender does offer robust support through its website, however.)

  Read Bankrate's Better.com mortgage review

• Fairway Independent Mortgage Corporation

  Fairway Independent Mortgage Corporation is one of the top mortgage lenders in the U.S., with branch locations in 48 states (not Alaska or West Virginia) and Washington, D.C. Its loan options include conventional and government loans, refinancing and physician loans for doctors and other medical professionals.

  Strengths: Fairway Independent Mortgage Corporation has a built-out app and streamlined process overall, and broad geographic coverage.

  Weaknesses: The lender doesn’t offer home equity lines of credit (HELOCs), and specific rates are not posted online.

  Read Bankrate's Fairway Independent Mortgage Corporation review

• Homeside

  Homeside Financial offers mortgages in more than 40 states. The loan process with this lender, which also does business as Lower, starts with a conversation with a loan officer who will help you determine the right option for your situation and submit an application online.

  Strengths: Homeside Financial has a strong focus on customer service and a large variety of loans, and is available in most of the country.

  Weaknesses: This lender doesn’t offer home equity loans, and offers no transparency around interest rates.

  Read Bankrate's Homeside review

• AmeriSave Mortgage Corporation

  AmeriSave Mortgage Corporation is an online mortgage lender available in every state (minus New York) and Washington, D.C.

  Strengths: AmeriSave Mortgage Corporation provides rate quotes quickly, and aims to close loans in “days, not weeks,” according to its website. Like other lenders, it offers 20-year loans, including rate-and-term and cash-out refinancing.

  Weaknesses: You’ll have to pay a $500 application fee.

  Read Bankrate's AmeriSave Mortgage Corporation review

• First Mortgage Direct

  First Mortgage Direct is the online lending division of First Mortgage Solutions, a brick-and-mortar lender based in Kansas City, Missouri. Notably, this lender doesn’t charge origination fees or other hidden costs.

  Strengths: Borrowers are assigned a readily available loan officer to work with via phone or email, and there are no origination or hidden fees with this lender.

  Weaknesses: First Mortgage Direct is not available in every state; it has limited call center hours for general inquiries; and does not advertise mortgage rates online.

  Read Bankrate's First Mortgage Direct review

20-year mortgage FAQs

• What is a 20-year fixed-rate mortgage?

  A 20-year fixed-rate mortgage 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 30-year mortgage, 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 15-year mortgage or the more aggressive 10-year mortgage.

• Comparing a 20-year loan to other loan terms

  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

• Why choose a 20-year mortgage?

  “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 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.

• 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.

• Fees to consider with a 20-year mortgage

  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 closing 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.

• Why compare 20-year mortgage rates?

  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.

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.

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.”

Learn more about fixed-rate loans

• Mortgage Calculator
• How to get a mortgage
• How to get pre-approved for a mortgage
• Mortgage rate forecast
• First time homebuyer grants and programs
• Mortgage points