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Is there 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.

The difference between a 20-year and a 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