We want to help you make more informed decisions. Some links on this page — clearly marked — may take you to a partner website and may result in us earning a referral commission. For more information, see How We Make Money.
Advertised & Editorial Rates: This table includes two types of listings: ads that we may be paid for (“advertiser listing”); and listings that we research and publish to provide a more holistic view of market rates (“editorial listings”). Here’s how to tell the difference: if you see a clickable button, such as a green “Next” button, that is an advertiser listing, and if you do not see a clickable button, it’s an editorial listing. For more information, see our Advertising Disclosure
Accuracy of Advertised Terms: Each advertiser is responsible for the accuracy and availability of its ad offer details. However, we attempt to verify those details through our quality control program. For more information, see our Quality Control Program.
Editorial Content: We include editorial content below the rate table to educate consumers about financial products and services. Some of that content may also contain ads, including links to advertisers’ sites, and we may be paid on those ads or links. For more information, see How We Make Money.
Terms and Phrases that may be used in this Mortgage Rate Table
Upfront costs: The upfront costs are charged for originating the loan. These costs are commonly labeled as Origination, Application, Processing, Underwriting, or Administration fees. The upfront costs may not include all costs associated with securing your mortgage. Please visit the Consumer Financial Protection Bureau’s website or consult a loan officer or broker for more information.
Points: Points are fees paid directly to the lender in exchange for a reduced interest rate. A point is equal to 1% of the borrowed funds. By paying points, you save money on interest over your mortgage’s term.
5-year cost: This is an estimated amount you’ll pay in interest and costs, such as the upfront costs and points, for the identified time. The estimated amount does not include principal payments or other costs, such as taxes, insurance, or private mortgage insurance. Your actual loan terms, such as the rate, annual percentage rate, monthly payment, and upfront costs, may be different because of other factors, such as your credit score, income, and employment history.
Calculate your monthly payment:
Principal: The face value of a loan, independent of the interest charged on the loan amount.
Interest: Payments made to a lender by a borrower in exchange for a loan.
Property Tax: Any tax on real estate or certain other forms of property.
Private mortgage insurance (PMI): An insurance policy that compensates lenders for losses from a mortgage loan default.
Homeowner association (HOA): A private association formed by a real estate developer for the purpose of marketing, managing, and selling homes and lots in a residential subdivision.
One-time fees breakdown: These fees are estimates of the fees charged by the lender for processing, approving and funding a loan.
What Are Today’s 20-Year Mortgage Rates?
On Wednesday, January 20, 2021 according to Bankrate’s latest survey of the nation’s largest mortgage lenders, the average 20-year mortgage rate is 2.790% with an APR of 3.100%. The average 20-year refinance rate is 2.890% with an APR of 3.150%.
Current 20-Year Mortgage Rates
|30-Year Fixed Rate||2.950%||3.160%|
|30-Year FHA Rate||2.550%||3.410%|
|30-Year VA Rate||2.860%||3.090%|
|30-Year Fixed Jumbo Rate||2.980%||3.050%|
|20-Year Fixed Rate||2.890%||3.150%|
|15-Year Fixed Rate||2.430%||2.670%|
|15-Year Fixed Jumbo Rate||2.450%||2.510%|
|10-Year Fixed Rate||2.470%||2.680%|
|5/1 ARM Rate||3.060%||4.060%|
|5/1 ARM Jumbo Rate||3.060%||4.030%|
|7/1 ARM Rate||3.020%||3.990%|
|7/1 ARM Jumbo Rate||3.110%||4.000%|
|10/1 ARM Rate||3.250%||4.030%|
|30-Year Fixed Rate||2.900%||3.200%|
|30-Year FHA Rate||2.630%||3.490%|
|30-Year VA Rate||3.130%||3.400%|
|30-Year Fixed Jumbo Rate||2.950%||3.060%|
|20-Year Fixed Rate||2.790%||3.100%|
|15-Year Fixed Rate||2.380%||2.720%|
|15-Year Fixed Jumbo Rate||2.410%||2.480%|
|10-Year Fixed Rate||2.390%||2.650%|
|5/1 ARM Rate||2.980%||4.000%|
|5/1 ARM Jumbo Rate||2.990%||3.940%|
|7/1 ARM Rate||2.920%||3.880%|
|7/1 ARM Jumbo Rate||3.000%||3.850%|
|10/1 ARM Rate||3.080%||3.940%|
Rates as of Wednesday, January 20, 2021
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.
What Is a Good 20-Year Fixed Mortgage Rate?
Looking at historical mortgage rates, interest rates on all types of home loans have never been lower. The average rates for 20-year, fixed mortgages are around 3% or less right now. If you can qualify for an interest rate this low, then you’re getting an exceptional deal.
However, the interest rate isn’t the only number you should pay attention to — the annual percentage rate (APR) is also important. The APR also factors certain fees into the rate and gives you a better idea of the overall cost of the loan.
What Are the Benefits of a 20-Year Mortgage?
The most common types of mortgages have 30-year or 15-year repayment terms, so a 20-year mortgage has some of the advantages of both loan types. You’ll typically get a lower interest rate on a 20-year mortgage compared to a 30-year loan. And because it has a longer repayment period than a 15-year, it will have lower monthly payments.
If your goal is to pay off your mortgage as soon as possible, but you can’t afford a 10-year or 15-year mortgage, then a 20-year loan is a good middle ground.
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 Term||Loan Balance||Interest Rate||Monthly Payment||Total Interest|
What Are the Downsides of a 20-Year, Fixed-Rate Mortgage?
Compared to the 30-year, fixed-rate mortgage, a 20-year fixed-rate mortgage has larger monthly payments. So depending on your budget, it can be an unaffordable mortgage for some homebuyers — especially in high-cost areas.
On the other hand, if you can afford a 15-year fixed-rate mortgage, it’ll have a lower rate than a 20-year loan. So with a 20-year mortgage you’ll end up paying more interest and won’t build equity as quickly.
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.