A 20-year mortgage rate is attractive to borrowers who are looking for an unchanging mortgage payment for a specific period of time. A 20-year fixed-rate mortgage will generally have a lower interest rate than a 30- or 40-year mortgage. You could spend less money on interest over the life of a 20-year mortgage loan as well.

20-year mortgage rate savings
20-year mortgage 30-year mortgage
Loan balance $213,000 $213,000
Interest rate 4% 4.5%
Loan term (months) 240 360
Loan payment $1,291 $1,079
Total interest expense $96,777 $175,526