The Best 20-Year Mortgage Rates for 2022

As of today, September 16, 2021, the 20-year fixed mortgage purchase rate is 2.76% and the 20-year fixed mortgage refi rate is 2.87%. These rates are not the teaser rates you may see advertised online and based on our methodology should be more representative of what customers could expect to be quoted depending on their qualifications. You can learn more about what makes our rates different in the Methodology section of this page.

Homeowners who want to pay off a mortgage faster than the conventional 30 years and save on interest costs should consider a 20-year home loan. With rates at historic lows, it’s a great time to start searching for the best 20-year mortgage rates to help you save tens of thousands of dollars over the entirety of your mortgage term. 

Since finding the right mortgage can assist you in finding your dream home, we’ve done the research and found the best rates to aid you in your search. These 20-year mortgage rates are from those who offer varying down payment requirements, offer discount points, and are available nationwide.

Today’s 20-Year Mortgage Rates

Today’s Rates For All Mortgage Loan Types

Frequently Asked Questions (FAQs)

Who Should Consider a 20-Year Mortgage?

Any homeowner who wants to benefit from lower interest rates and pay off their mortgage sooner-than-later should consider a 20-year mortgage. In general, 20-year mortgage rates are lower than 30-year ones, helping to reduce the payments of interest over the course of the loan. However, a 20-year mortgage pays the loan off faster and thus has a higher monthly obligation. Homeowners should factor in higher costs to their monthly budget when it comes to choosing a 20-year mortgage, although it is still less than what a 15-year mortgage would require.

What Are the Benefits of a 20-Year Mortgage?

The main benefit of a 20-year mortgage is the savings homeowners receive from lower interest rates and paying it off sooner than 30 years. For instance, if you purchase a home for $300,000 and put 20% down. Instead of a 30-year mortgage at 3.25%, you opt for the 20-year term at 3%, you can save around $49,313.50 in interest throughout the lifetime of the loan. 

A 20-year mortgage has more affordable monthly payments than a 15-year mortgage. Although you’ll most likely save even more in interest with the 15-year mortgage, the monthly payment will be higher, which can be burdensome for some borrowers.

Who Sets Mortgage Rates?

Lenders set mortgage rates, though federal short-term interest rates determined by the Federal Open Market Committee—part of the Federal Reserve—influence them. Individual factors can also influence mortgage rates, such as a borrower’s credit score, assets, liabilities, and debts. In other words, a borrower that is seen as high risk will most likely receive a higher interest rate compared to someone who is considered a low-risk borrower. 

What Is Considered a Good 20-Year Mortgage Rate?

A good mortgage rate is relative and will depend on your credit profile. For instance, if you make a large down payment, your rate will most likely be lower than someone who puts a lower down payment (there are exceptions such as VA and FHA loans). Or if you have a lower credit score, the chances of you receiving a very competitive rate will be slim. 

To increase your chances of getting the best rate, you can take a few steps including raising your credit score, saving up for a larger down payment, and shopping around a few different lenders.

Do Different Mortgage Types Have Different Rates?

Different mortgage types usually have different rates, so do your research. For instance, adjustable-rate mortgages (ARM) have lower initial rates but will fluctuate afterward depending on current market conditions. Fixed-rate mortgages may be higher but borrowers don’t need to worry about rates changing throughout the entirety of the loan term. 

Are Interest Rate and APR the Same?

The interest rate and annual percentage rate (APR) are not the same. Lenders include charges such as origination fees along with the interest in the APR. That’s why the APR is higher than the interest rate. For APRs that are similar to the interest rate, it means the loan has fewer added costs rolled into the loan. Like interest rates, the lower the APR, the less borrowers will pay throughout the lifetime of the loan. 

How Does My Credit Score Affect My Mortgage Rate?

Your credit score directly affects your mortgage rate—those with low credit scores won’t be able to qualify for the best rates out there. What this means is that borrowers could end up paying more throughout the loan. Even a quarter of a percent difference could mean saving thousands of dollars in interest.

The reason why your credit score is so important to lenders is that it’s an indicator of your risk profile—it shows the chances you’ll pay back your loan on time and in full. Lenders want to see a higher score as it shows that borrowers have a record of on-time payments to their creditors. 

Your credit score is made up of information from your credit report, which includes information about open and closed credit accounts, your payment history, and more. These reports are created by credit bureaus—Equifax, Experian, and TransUnion. Because your credit history is so vital to your score, experts recommend checking your credit report to check for any discrepancies or what could be affecting your score before applying for a loan. 

What Are Mortgage Points?

Lenders offer mortgage points to give borrowers the option to prepay interest when taking out a home loan. This one-time fee is also referred to as discount points and is intended to lower a borrower’s interest rate. To lower the rate by a quarter of a percent, it’ll cost you one percent of your mortgage amount. For example, if you take out a $250,000 mortgage and you want to lower the current interest rate of 3.25% by one point, you’ll need to pay $2,500 to get it down to 3%.

Is a 20-Year Mortgage a Good Option for Refinancing?

When refinancing a mortgage, a 20-year term is a great choice because choosing it means you don’t need to start all over again with a 30-year mortgage. While a 30-year term could mean a lower monthly payment, you’ll end up paying more in interest overall, defeating the purpose of refinancing in the first place. Compared to a 15-year or 10-year refinance, a 20-year term is much more doable in terms of the monthly payment amount. 

Of course, all of this depends on how many years you have left on your current mortgage and the amount you want to refinance. That’s why it’s best to shop around to see what makes the most sense for your financial situation. 

How We Chose the Best 20-Year Mortgage Rates

In order to assess the best 20-year mortgage rates, we first needed to create a credit profile. This profile included a credit score ranging from 700 to 760 with a property loan-to-value ratio (LTV) of 80%. With this profile, we averaged the lowest rates offered by more than 200 of the nation’s top lenders. As such, these rates are representative of what real consumers will see when shopping for a mortgage. 

Keep in mind that mortgage rates may change daily and this data is intended to be for informational purposes only. A person’s personal credit and income profile will be the deciding factors in what loan rates and terms they are able to get. Loan rates do not include amounts for taxes or insurance premiums and individual lender terms will apply.