Current 20-year mortgage rates

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.

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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.

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.

Here’s how monthly payments for principal and interest would compare for a $300,000 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.

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.