20 Year fixed mortgage rates & calculator

Interest rate animationThe 20 year fixed interest rate is lower than the 30 year rate, but higher than the 15 year interest rate. The 20 year fixed rate mortgage makes sense if you want to pay off the mortgage quickly. A monthly over payment on top of the required monthly payment can payoff the mortgage even faster.

Compare the 20 year monthly mortgage payments

Monthly Payment 1   Monthly Payment 2
Interest Rate   Interest Rate
Term   Term
Mortgage Amount   Mortgage Amount
Payment   Payment
Compare Payments  
Enter the 20 year interest interest rate along with the mortgage amount and term in PAYMENT OPTION 1, and the higher interest rate mortgage amount and term in PAYMENT OPTION 2. Click on Compare Payments
1. Principal & Interest - Fully amortizing payment ( i.e. principal & interest)
2. Bi-Weekly - 1/2 of the fully amortizing monthly payment paid every two weeks
3. Interest Only - Interest only payment - no principal reduction

Pros and cons of the 20 year fixed rate mortgage

The obvious benefit of the 20 year mortgage is that the loan will payoff in 20 years, however, compared to the 30 year mortgage, the monthly payment will be higher because there are only 240 payments in the 20 year mortgage, and 360 payments with a 30 year mortgage.

But, the interest rate is lower than the 30 year mortgage rate by about 1/4%.

30 Year Mortgage20 Year MortgageDifference
Loan Amount100,000100,000 
Monthly Payment$553 $660 ($107)
Interest Rate5.25%5.00% 
Total Interest Paid$98,793 $58,389 $40,404