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What Is the Interest Rate for a 20 Year Mortgage?

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.

Difference between 20 year and 30 year 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 Mortgage 20 Year Mortgage Difference
Loan Amount 100,000 100,000  
Monthly Payment $553 $660 ($107)
Interest Rate 5.25% 5.00%  
Total Interest Paid $98,793 $58,389 $40,404

Rotating question markFrequently Asked Questions About 20 Year Fixed Mortgage Rates

Q. Are there 20 year mortgages?
A. There are 20 year mortgages and 25 year mortgages also

Q. Can you get a 20 year mortgage?
A. 20 year mortgages are available for purchase and refinance loans

Q. How can I get the lowest mortgage rate?
A. The best way to get a lower interest rate is to increase your credit score. Many people are surprised to learn that credit scores are tied to interest rates. Take a look at your credit report, it's free from Equifax, Experian and TransUnion.

Q. How can I pay off my 15 year mortgage in 5 years?
A. Use our extra payment calculator to estimate the monthly over payment amount to reduce the payoff the loan in 5 years.

Q. Is a 20 year mortgage a good idea?
A. Everybody's situation is different, but if you intend to make over payments on your mortgage, then a 20 year mortgage is a good idea due to the lower interest rate.

Q. Is a 20 year mortgage worth it?
A. If you can afford the payment, a 20 year mortgage is worth it because of the interest savings

Q. Should I refinance to a 15 or 20 year mortgage?
A. Compare both payments and decide