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Current 20-year mortgage rates

On Monday, September 25, 2023, the national average 20-year fixed mortgage APR is 7.68%. The average 20-year refinance APR is 7.81%, according to Bankrate's latest survey of the nation's largest mortgage lenders.

On Monday, September 25, 2023, the national average 20-year fixed mortgage APR is 7.68%. The average 20-year refinance APR is 7.81%, according to Bankrate's latest survey of the nation's largest mortgage 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 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 7.67% 7.68%
30-Year Fixed 7.64% 7.66%
15-Year Fixed 6.86% 6.89%
10-Year Fixed 6.82% 6.86%

Rates as of Monday, September 25, 2023 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.


  • 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.


  • 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 shop for 20-year fixed mortgage rates

Once you’ve settled on the length of the loan term, 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. 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.

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. Since you’ll have a shorter 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.

  1. Get preapproved: Collect quotes from three or more mortgage lenders – ideally on the same day, because rates can move 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. Compare 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. Consider 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.

Alternatives to a 20-year mortgage

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.

  1. 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; 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.
  2. 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.
  3. Make extra payments towards the principal balance. You can take out a 30-year mortgage and effectively turn it into a shorter one by asking your lender or loan servicer if you can pay extra against the principal each month, or issue an extra payment annually. If you receive an unexpected windfall, such as a work bonus or an inheritance, consider using those funds to make an additional payment. Make sure that your lender understands that you want the extra payments applied towards your principal, not your interest.

Frequently asked questions about 20-year mortgages


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