Current 20-Year Mortgage Rates for November 2022

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What Is a 20-Year Fixed-Rate Mortgage?

A 20-year, fixed-rate mortgage is a home loan with a 20-year repayment period and a mortgage rate that will never change. With a 20-year mortgage, you’ll pay off the loan 10 years sooner than you would with the most popular type of home loan: the 30-year, fixed-rate mortgage.

So this type of mortgage can be good for homebuyers who want to be debt free more quickly and have the income to manage the higher payments that come with a shorter loan repayment term.

How Does a 20-Year Mortgage Payment Compare to Other Terms?

Lenders offer lower interest rates for shorter-term loans, but because you’re repaying the loan more quickly, your monthly payments are higher. The table below shows how interest rates and loan terms impact your monthly payment and overall loan cost.

Loan TermLoan BalanceInterest RateMonthly PaymentTotal Interest
10 Years$250,0002.25%$2,328$29,418
15 Years$250,0002.30%$1,643$45,855
20 Years$250,0002.75%$1,355$75,332
30 Years$250,0003%$1,054$129,446

The Latest Mortgage Rate & Housing Market News

What’s Going On With Rising Mortgage Rates?

Mortgage rates have been on the rise since the start of the year and haven’t stopped yet. A big reason behind the increase is that inflation has remained at its highest level in 40 years. The Consumer Price Index was up 8.2% year-over-year in September – lower than August but still well above what markets and the Federal Reserve are comfortable with.

The Fed’s approach to high inflation has been to raise its benchmark short-term interest rate, a strategy that aims to make borrowing more expensive and encourage saving, driving down demand for goods and services and reducing prices. The Fed last raised its federal funds rate in September, and is expected to do so again in November.

The economic situation has mortgage rates jumping up and down on a daily basis.

“The market just can’t really decide which way it wants to go in terms of the direction of rates,” says Melissa Cohn, regional vice president of William Raveis Mortgage in New York.

Don’t expect mortgage rates to plummet until economic conditions change, experts say.

“Until we get some sustained evidence that inflation is beginning to recede, the upward pressure on mortgage rates will remain,” Odeta Kushi, deputy chief economist at First American Financial Corporation, told us.

What Can Homebuyers Do About Rising Mortgage Rates?

The current housing environment is particularly tough for first-time homebuyers, but it might still make sense to buy. “It’s always a good time to buy a home, if that’s what is important to you. It’s just about doing your research and making good informed decisions,” Eileen Derks, head of mortgage at Laurel Road, told us

Rising mortgage rates have made affordability increasingly difficult for homebuyers, despite some drops in home prices. If you’re considering a mortgage, experts say it’s more important than ever to shop around with different lenders, as rates can vary dramatically from day to day and from lender to lender.

“Until you’re ready to lock, you need to keep your eye on more than one ball,” Cohn says.

What’s Happening With Home Prices?   

The big surge in mortgage rates has started to bring down home prices. The median existing home sold for $389,500, up 7.7% from a year earlier but down from figures of more than $400,000 seen earlier in the summer, according to the National Association of Realtors (NAR).

How quickly the housing market is turning around depends on where you are. In some cities, prices are seeing month-to-month price drops of nearly 3%, while others are still riding a wave of increases. “It’s very market-dependent at the moment,” says Robert Heck, vice president of mortgage at Morty, an online mortgage broker. 

Home sales figures are dropping significantly – down 0.4% from July to August and nearly 20% from August 2021 – in part because homeowners who have favorable mortgage rates are unwilling to sell and get a loan at a much higher rate. 

Homebuyers facing a difficult environment can find creative ways to save money on a home purchase. One is to consider an adjustable-rate mortgage, Cohn says. They tend to offer periods of several years with a fixed rate – and it should be significantly lower than a 30-year fixed rate would be – before the rate starts to adjust with the market. That should give you a few years to refinance if the market improves.

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Pros and Cons of a 20-Year Mortgage

Pros

  • Lower interest rate

  • Lower monthly payment compared to a 15-year

  • Payoff timeline is shorter than a 30-year term

Cons

  • Larger monthly payment compared to a 30-year term

  • More overall interest will accrue compared to a 15-year term

What Are Today’s 20-Year Mortgage Rates?

On Tuesday, November 29, 2022 according to Bankrate’s latest survey of the nation’s largest mortgage lenders, the average 20-year mortgage rate is 6.630% with an APR of 6.650%. The average 20-year refinance rate is 6.620% with an APR of 6.640%.

Current 20-Year Mortgage Rates

ProductInterest RateAPR
30-Year Fixed Rate6.790%6.810%
30-Year FHA Rate5.960%6.850%
30-Year VA Rate6.040%6.260%
30-Year Fixed Jumbo Rate6.820%6.830%
20-Year Fixed Rate6.620%6.640%
15-Year Fixed Rate6.090%6.120%
15-Year Fixed Jumbo Rate6.090%6.110%
10-Year Fixed Rate6.180%6.210%
5/1 ARM Rate5.320%7.300%
5/1 ARM Jumbo Rate5.240%7.060%
7/1 ARM Rate6.000%6.880%
7/1 ARM Jumbo Rate6.290%6.580%
10/1 ARM Rate6.420%6.830%
ProductInterest RateAPR
30-Year Fixed Rate6.790%6.810%
30-Year FHA Rate6.030%6.900%
30-Year VA Rate6.090%6.220%
30-Year Fixed Jumbo Rate6.800%6.810%
20-Year Fixed Rate6.630%6.650%
15-Year Fixed Rate6.110%6.140%
15-Year Fixed Jumbo Rate6.110%6.130%
10-Year Fixed Rate6.200%6.220%
5/1 ARM Rate5.500%7.490%
5/1 ARM Jumbo Rate5.310%7.470%
7/1 ARM Rate6.040%6.990%
7/1 ARM Jumbo Rate6.300%6.610%
10/1 ARM Rate6.350%6.920%

Rates as of Tuesday, November 29, 2022

ABOUT THESE RATES

These rate averages are based on weekday mortgage rate information provided by national lenders to Bankrate.com, which like NextAdvisor is owned by Red Ventures. These averages provide borrowers a broad view of average rates that can inform borrowers when comparing lender offers. We feature both the interest rate and the annual percentage rate (APR), which includes additional lender fees, so you can get a better idea of the overall cost of the loan. The actual interest rate you can qualify for may be different from the average rates quoted in our rate table. But these rates are useful for giving you a benchmark to use when comparing loan offers by giving you a sense of how the type of mortgage and the length of the repayment term impacts your interest rate and APR.

Fees to Consider With a 20-Year Mortgage

The repayment term of your mortgage won’t impact the fees you pay on the loan. So a 15-year, 20-year, or 30-year mortgage will have the exact same closing costs, all else equal.

What will affect the fees you pay is the lender you choose. So it’s worth the extra effort to compare offers and find the best mortgage lender.

Closing costs range from 2% to 6% of the loan amount, and lowering those fees by just 1% can save you thousands of dollars. A detailed estimate of your closing costs is included on the Loan Estimate, which the lender is required to provide you within three business days of submitting an application. Once you have a few offers in hand, you can compare fees and select the best deal.

How To Pick the Right Mortgage Loan Term For You

Ultimately, deciding which mortgage term is best for you depends on your personal situation and goals. Can you afford a higher monthly payment? Do you care about building equity in your home faster, or paying off your mortgage sooner? If so, then a 15-year mortgage could be for you. But if you can’t afford a high monthly payment, or if you would be better off spending that money elsewhere, then a 30-year mortgage would likely be a better bet. If you want a compromise between the two options, a 20-year mortgage might be able to provide that.