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Current 20-year mortgage rates

On Thursday, February 29, 2024, the national average 20-year fixed mortgage APR is 7.09%. The average 20-year refinance APR is 7.12%, according to Bankrate's ... latest survey of the nation's largest mortgage lenders.

20-year mortgage rates today

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 table is updated daily to give you the most current interest rates and APRs when choosing a 20-year fixed mortgage loan.

Product Interest Rate APR
20-Year Fixed 7.03% 7.09%
30-Year Fixed 7.18% 7.23%
15-Year Fixed 6.64% 6.72%
10-Year Fixed 6.63% 6.71%

Rates as of Thursday, February 29, 2024 at 6:30 AM

What is a 20-year fixed-rate mortgage?

A 20-year fixed-rate mortgage is a home loan paid off over 20 years with the same, consistent interest rate. It comes with a higher monthly payment compared to a 30-year loan, but typically a slightly lower rate, saving you money on interest.

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 quicker, while paying less interest to your lender. On the other hand, a 20-year loan’s monthly payments will be higher than a 30-year loan for the same amount.

Pros of 20-year mortgages

  • 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’ll accelerate the loan 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 of 20-year mortgages

  • Your monthly payments will be higher than they would be with a 30-year loan.
  • You might have to settle for a less-expensive home.
  • You’ll have less cash on hand month to month.

How to shop for 20-year fixed mortgage rates

Prepare for your home search by reviewing your credit and finances to determine whether you need to up your credit score and how much you can afford to put toward a home each month. Research current mortgage rates so you know what to expect when you rate-shop.

When you’re ready to get a 20-year loan, the rule of thumb is to compare at least three mortgage offers by:

  1. Getting preapproved: Collect quotes from three or more mortgage lenders – ideally on the same day, because rates can change quickly. Lenders set your mortgage rate based on your credit score, debt-to-income (DTI) ratio and other factors, including the size of your down payment. If you have some flexibility around those variables, you might find a better deal.
  2. Comparing the annual percentage rates (APR): The APR reflects some of the expenses you’ll incur for the loan, such as the origination fee and any points, in addition to the interest rate.
  3. Considering the lender’s ratings and your experience: Aside from the numbers, evaluate other factors such as convenience or the lender’s responsiveness. Take a look at what other borrowers have had to say about the lender, too.

Lender compare

Compare mortgage lenders side by side

Mortgage rates and fees can vary widely across lenders. To help you find the right one for your needs, use this tool to compare lenders based on a variety of factors. Bankrate has reviewed and partners with these lenders, and the two lenders shown first have the highest combined Bankrate Score and customer ratings. You can use the drop downs to explore beyond these lenders and find the best option for you.

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Garden State Home Loans

NMLS: 473163

State License: MB-473163

3.6

Rating: 3.6 stars out of 5
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Rating: 4.98 stars out of 5

5.0

562reviews

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Homefinity

NMLS: 2289

State License: 4965

4.5

Rating: 4.5 stars out of 5
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Recent Customer Reviews

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Rating: 4.94 stars out of 5

4.9

1059reviews

20-year mortgage FAQ

 

Written by: Jeff Ostrowski, senior mortgage reporter for Bankrate

Jeff Ostrowski covers mortgages and the housing market. Before joining Bankrate in 2020, he wrote about real estate and the economy for the Palm Beach Post and the South Florida Business Journal.

Read more from Jeff Ostrowski