The Best 20-Year Mortgage Rates for 2022

Effective today, August 16, 2022, the 20-year fixed mortgage purchase rate is 5.23% and the 20-year fixed mortgage refinance rate is 5.46%. These prices are not the guide prices you may see advertised online and, based on our methodology, they should be more representative of what customers can expect to receive based on their qualifications. You can read more about what makes our pricing 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 charges should consider a 20-year home loan. With rates at historic lows, now is a great time to start researching the best 20-year mortgage rates to help you save tens of thousands of dollars over the life of your mortgage.

Since finding the right mortgage can help you find your dream home, we’ve done your research and found the best rates to help you in your search. These 20-year mortgage rates are from those offering various deposit requirementsoffer discount points and are available nationwide.

Current 20-year mortgage rates

Type of loan To buy Refinance
20 years fixed 5.23% 5.46%
National averages of the lowest rates offered by over 200 of the country’s major lenders, with an 80% loan-to-value (LTV) ratio, an applicant with a FICO credit score of 700-760 and no mortgage points.

Today’s rates for all types of mortgages

Type of loan To buy Refinance
Fixed 30 years 5.55% 5.99%
30-year fixed FHA 5.43% 5.91%
VA 30 years fixed 5.60% 6.15%
30 year fixed jumbo 4.94% 5.03%
20 years fixed 5.23% 5.46%
15 years fixed 4.97% 5.25%
15 year fixed jumbo 4.94% 5.04%
10 years fixed 4.95% 5.19%
10/6 ARM 5.78% 6.10%
ARM 7/6 5.81% 5.90%
Jumbo 7/6 ARM 4.62% 4.80%
5/6 ARMS 5.61% 5.74%
Jumbo 5/6 ARM 4.73% 4.81%
National averages of the lowest rates offered by over 200 of the country’s major lenders, with an 80% loan-to-value (LTV) ratio, an applicant with a FICO credit score of 700-760 and no mortgage points.

Frequently Asked Questions

Who Should Consider a 20 Year Mortgage?

Any homeowner who wants to benefit from lower interest rates and pay off their mortgage sooner rather than later should consider a 20-year mortgage. Typically, 20-year mortgage rates are lower than 30-year mortgage rates, helping to lower interest payments over the life of the loan.

However, a 20-year mortgage pays off the loan faster and therefore has a higher monthly obligation. Homeowners should factor the higher costs into their monthly budget when choosing a 20-year mortgage, although this is still lower 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 that homeowners save money through lower interest rates and pay them off sooner than 30 years. For example, if you buy a house 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 about $49,313.50 in interest over the life of the loan.

A 20-year mortgage has more affordable monthly payments than a 15-year mortgage. Although you’ll 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, although short-term federal interest rates determined by the Federal Open Market Committee, which is 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 who is considered high risk will most likely receive a higher interest rate compared to someone who is considered a low risk borrower.

What is a good 20-year mortgage rate?

A good mortgage rate is relative and will depend on your credit profile. For example, if you make a large down payment, your rate will most likely be lower than someone who makes 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, there are a few steps you can take, including increasing your credit score, saving for a bigger down payment, and shopping around with a few different lenders.

Do different types of mortgages have different rates?

Different types of mortgages usually have different rates, so do your research. For instance, adjustable rate mortgages (ARM) have lower initial rates, but will fluctuate thereafter based on current market conditions. Fixed rate mortgages can be higher, but borrowers don’t have to worry about rate changes over the life of the loan.

Are the interest rate and APR the same?

The interest rate and the annual percentage rate (APR) are not the same. Lenders include fees such as origination fees as well as interest on the APR. This is why the APR is higher than the interest rate. For APRs that are similar to the interest rate, this means the loan has fewer additional costs built into the loan. Like interest rates, the lower the APR, the less borrowers will pay over the life of the loan.

How does my credit score affect my mortgage rate?

Your credit score directly affects your mortgage rate – those with a low credit score will not be able to qualify for the best rates available. This means borrowers could end up paying more throughout the loan. Even a quarter percent difference could mean thousands of dollars saved in interest.

The reason your credit score is so important to lenders is that it’s an indicator of your risk profile: it indicates the chances of you repaying your loan on time and in full. Lenders want to see a higher score because it shows that borrowers have a history 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 the credit bureaus—Equifax, Experian, and TransUnion. Since your credit history is critical to your score, experts recommend checking your credit report for any discrepancies or what might affect 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. These one-time charges are also called discount points and are intended to reduce the borrower’s interest rate. To reduce the rate by a quarter of a percent, it will cost you one percent of your mortgage amount. For example, if you take out a $250,000 mortgage and want to reduce the current interest rate of 3.25% by one point, you would have to pay $2,500 to bring it down to 3%.

Is a 20-year mortgage a good refinancing option?

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

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

How we choose the best 20-year mortgage rates

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

Remember that mortgage rates can change daily and this data is provided for informational purposes only. A person’s personal credit and income profile will be the determining factors of the loan rates and terms they can obtain. Loan rates do not include amounts for taxes or insurance premiums and individual lender terms will apply.

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