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.
What Are Today’s 20-Year Refinance Rates?
On Friday, July 23, 2021 according to Bankrate’s latest survey of the nation’s largest mortgage lenders, the average 20-year refinance rate is 2.870% with an APR of 3.050%.
Current 20-Year Refinance Rates
|30-Year Fixed Rate||2.990%||3.170%|
|30-Year FHA Rate||2.630%||3.530%|
|30-Year VA Rate||2.750%||2.980%|
|30-Year Fixed Jumbo Rate||3.000%||3.090%|
|20-Year Fixed Rate||2.870%||3.050%|
|15-Year Fixed Rate||2.300%||2.540%|
|15-Year Fixed Jumbo Rate||2.290%||2.370%|
|10-Year Fixed Rate||2.310%||2.520%|
|5/1 ARM Rate||2.720%||3.990%|
|5/1 ARM Jumbo Rate||2.680%||3.620%|
|7/1 ARM Rate||3.510%||4.120%|
|7/1 ARM Jumbo Rate||3.870%||4.170%|
|10/1 ARM Rate||3.920%||4.230%|
|30-Year Fixed Rate||3.010%||3.250%|
|30-Year FHA Rate||2.600%||3.500%|
|30-Year VA Rate||2.690%||2.890%|
|30-Year Fixed Jumbo Rate||3.030%||3.150%|
|20-Year Fixed Rate||2.850%||3.060%|
|15-Year Fixed Rate||2.310%||2.620%|
|15-Year Fixed Jumbo Rate||2.300%||2.390%|
|10-Year Fixed Rate||2.300%||2.540%|
|5/1 ARM Rate||2.800%||3.960%|
|5/1 ARM Jumbo Rate||2.860%||3.640%|
|7/1 ARM Rate||3.040%||3.900%|
|7/1 ARM Jumbo Rate||3.290%||3.820%|
|10/1 ARM Rate||3.240%||4.010%|
Rates as of Friday, July 23, 2021
What Is a 20-Year Fixed-Rate Mortgage Refinance?
A 20-year mortgage refinance is a home loan you repay in 20 years at a fixed interest rate. This refinance loan replaces your existing mortgage’s terms. Repayment terms of 30 years tend to be more common, so a 20-year refinance loan is beneficial for people looking to pay off their mortgages faster.
When Is the Right Time to Refinance?
The right time to refinance is when you’re able to get a refinance loan with better terms than your existing mortgage. This can come in the form of a lower interest rate, lower monthly payments, or a faster repayment period. Homeowners with adjustable-rate mortgages (ARM) will also benefit from a fixed-rate refinance loan because they offer more stability. Any refinance offer you receive will be dependent on your credit profile, your mortgage payment history, and the interest rates currently available in the market.
When a 20-Year Refinance Loan Makes Sense
20-year refinance loans make sense when you want to finish paying off your mortgage more quickly than you would with the typical 30-year mortgage. After that repayment period, you would own your home outright. These types of loans also make sense if refinance rates are low (or lower than the interest rate on your existing mortgage). But you’ll have to make sure you can afford the higher monthly payments that come with a shorter repayment period.
How Do I Find The Best Fixed 20-Year Refinance Rate?
To get the best fixed 20-year refinance rate, shop around. Do your research on what lenders are offering these types of loans, and aim for at least three different Loan Estimates to get an understanding of what the market will offer for someone with your credit profile.
Underwriting criteria differs between each lender, so make sure that your credit and finances are in a good place before trying to refinance to give yourself your best chance at securing a good refinance rate. Make sure to view your credit reports from the three major credit bureaus (Equifax, Experian, and TransUnion) and dispute any inaccuracies you notice. Once you receive Loan Estimates, look at APR, repayment period, fees, closing costs, and other criteria before signing on the dotted line.