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Compare current 20-year refinance rates

On Friday, September 30, 2022, the national average 20-year fixed refinance APR is 6.91%. The average 20-year fixed mortgage APR is 6.91%, according to Bankrate's latest survey of the nation's largest refinance lenders.

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Today's 20-year refinance 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 refinance loans. The interest rate table below is updated daily to give you the most current refinance 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.

Product Interest Rate APR
20-Year Fixed 6.89% 6.91%
10-Year Fixed 6.17% 6.22%
15-Year Fixed 6.04% 6.08%
30-Year Fixed 6.83% 6.85%

Rates as of Friday, September 30, 2022 at 6:30 AM

Pros and cons of a 20-year fixed-rate refinance

Pros

  • Paid off faster than a traditional 30-year mortgage. Since you'll have a shorter time frame than a 30-year mortgage, you'll have that mortgage paid off sooner — 10 years faster, to be exact. That means one fewer thing to worry about, and it will free up a large chunk of change to be used for other expenses and money goals.
  • Generally have a lower interest rate than longer-term loans. Typically, the shorter the term, the lower the interest rate. Interest rates for a 20-year mortgage will have a lower interest rate than a 30-year mortgage.
  • Less interest paid over the life of the loan than a 30-year mortgage. Because the interest rate is lower on a 20-year mortgage, you'll not only have your home loan paid off sooner, but you'll be forking over less in interest over the duration of the loan.
  • More affordable than shorter-term loans like 10- or 15-year mortgages. Because the life of the loan is stretched out for a longer duration than a 10 or 15-year mortgage, your loan payments will be lower. In turn, a 20-year mortgage will be more affordable.

Cons

  • Higher monthly payments than a 30-year mortgage. While the monthly payments for a 20-year mortgage are smaller than a 10- or 15-year mortgage, you can expect to pay more for a 30-year mortgage. In turn, it's less affordable as you'll need to pour more cash into paying off your house each month.
  • More interest paid over the life of the loan than a shorter mortgage. You'll be paying more in interest fees on a 20-year mortgage than if you had a 10- or 15-year mortgage, which means it'll be more expensive.

Comparing a 20-year mortgage refinance to other loan types

While a 20-year mortgage means you'll pay off your loan faster than a 30-year mortgage, it also means you'll have higher monthly payments. However, the lower monthly payments that come with a 30-year mortgage means you can borrow a larger amount.

Even if the total you'd like to borrow would be the same for a 20-year mortgage, you might have an easier time qualifying for a longer-term loan because of the difference in monthly payments.

When stacking a 20-year mortgage against a 10- or 15-year mortgage, it will take you longer to pay off the 20-year mortgage, but the monthly payments will be more affordable.

20-year vs. 15-year vs. 30-year mortgage interest and payments
15-year fixed-rate mortgage 20-year fixed-rate mortgage 30-year fixed-rate mortgage
Loan principal $312,900 $312,900 $312,900
Interest rate 4.19% 5.51% 5.53%
Monthly payment $2,344 $2,154 $1,783
Total interest $109,090 $204,100 $328,802
Total payments $421,990 $517,000 $641,702
*Notes: Interest rates as of August 15, 2022; monthly payments do not include insurance or taxes.

Is a 20-year mortgage refinance right for me?

Refinancing into a 20-year mortgage could make sense for you if:

  • You already have a 10- or 15-year mortgage and are struggling to meet the monthly payments. Taking out a new loan with a longer repayment period could free up some cash in your budget.
  • You have an adjustable-rate mortgage (ARM) nearing the end of its initial term. A 20-year fixed mortgage will give you more stability, since your rate won’t change for the lifetime of the loan.
  • You can afford the cost of the new loan. It’s important to look closely at your household income and whether your mortgage plus additional housing expenses — think homeowners insurance and utilities — can fit your new payment into your current budget comfortably.

Keep in mind: You can pay off any mortgage loan at any pace you want. However, you'll need to make the minimum payment. By making extra principal payments each month (check with your lender on how this is done) you can turn a 30-year loan into a 20, or a 15 or a 10. This way if you need extra cash, you can skip the additional principal payment any month you like.

When considering a refinance, it’s also a good idea to explore different kinds of loans and loan terms to determine what’s best for you and your budget. Refinancing into a conventional fixed-rate loan from an FHA loan could mean significant savings since these government-insured loans usually have costly insurance premiums.

Other loans such as a VA or ARM (adjustable rate mortgage) don’t usually have these same insurance costs, but refinancing can still make sense for borrowers who can get a low enough rate to quickly offset their refinancing costs.

20-year refinance FAQs

Learn more about refinancing

Written by: Zach Wichter, mortgage reporter for Bankrate

Zach Wichter is a mortgage reporter at Bankrate. He previously worked on the Business desk at The New York Times where he won a Loeb Award for breaking news, and covered aviation for The Points Guy.

Read more from Zach Wichter