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Written by Jeff Ostrowski
Edited by Suzanne De Vita
Edited by Suzanne De Vita
On Monday, September 16, 2024, the national average 20-year fixed refinance APR is 6.28%. The average 20-year fixed mortgage APR is 6.22%, according to Bankrate's... latest survey of the nation's largest mortgage lenders.
On this page
- Weekly national mortgage rate trends
- 20-year refinance rates today
- Pros and cons of a 20-year mortgage refinance
- Compare mortgage lenders side by side
- 20-year mortgage vs. other loan terms
- Is a 20-year mortgage refinance right for me?
- 20-year mortgage refinance FAQ
How to compare mortgage offers
Comparison-shopping for a mortgage isn’t just smart — it’s crucial to get the most competitive rate and mortgage terms. Even a 0.1 difference in an interest rate can save thousands of dollars over the life of the loan. Bankrate’s mortgage rate table allows you to easily compare personalized rates from our marketplace of trusted lenders. Here is how to compare mortgage offers on Bankrate in 3 easy steps:
- Determine the right type of mortgage: There are a lot of options in home loans, so it’s important to research and decide what type of mortgage might be best for you, given your finances and your short- and long-term goals.
- Gather necessary documentation: In order for lenders to give you the most accurate quote, you will need to provide paperwork once connected with a lender that verifies your income, assets, debts and employment.
- Compare mortgage offers online: Bankrate helps you easily compare mortgage offers by using our mortgage rate table below. Our rate table filters allow you to plug in general information about your finances and location to receive tailored offers. As you weigh offers, be sure to consider APRs, lender fees and closing costs to ensure you’re making accurate comparisons — and maximizing your savings potential.
The Bankrate Promise
Bankrate has helped people make smarter financial decisions for 40+ years. Our mortgage rate tables allow users to easily compare offers from trusted lenders and get personalized quotes in under 2 minutes. While our priority is editorial integrity, these pages may contain references to products from our partners. Here is how we make money.
On This Page
On This Page
- Weekly national mortgage rate trends
- 20-year refinance rates today
- Pros and cons of a 20-year mortgage refinance
- Compare mortgage lenders side by side
- 20-year mortgage vs. other loan terms
- Is a 20-year mortgage refinance right for me?
- 20-year mortgage refinance FAQ
Weekly national mortgage interest rate trends
Current refinance rates
20 year fixed refinance | 6.22% | |
10 year fixed refinance | 5.82% | |
30 year fixed refinance | 6.40% |
20-year refinance rates today
Lenders nationwide provide weekday mortgage rates to our comprehensive national survey to bring you the most current rates available. Here you can see the latest marketplace average rates for a wide variety of refinance loans. The interest rate table below is updated daily to give you the most current refinance rates when choosing a home loan. APRs and rates are based on no existing relationship or automatic payments. For these averages, the customer profile includes a 740 FICO score and a single-family residence. To learn more, seeunderstanding Bankrate rate averages.
Product | Interest Rate | APR |
---|---|---|
20-Year Fixed | 6.17% | 6.22% |
10-Year Fixed | 5.87% | 5.95% |
15-Year Fixed | 5.59% | 5.67% |
30-Year Fixed | 6.29% | 6.34% |
Rates as of Monday, September 16, 2024 at 6:30 AM
Product | Interest Rate | APR |
---|---|---|
20-Year Fixed | 6.23% | 6.28% |
10-Year Fixed | 5.89% | 5.97% |
15-Year Fixed | 5.70% | 5.78% |
30-Year Fixed | 6.34% | 6.38% |
Rates as of Monday, September 16, 2024 at 6:30 AM
Pros and cons of a 20-year mortgage refinance
Pros of a 20-year mortgage refinance
- Paid off faster than a traditional 30-year mortgage:Since you'll have a shorter time frame than a 30-year mortgage, you'll have that mortgage paid off sooner — 10 years faster, to be exact. That means one fewer thing to worry about, and it will free up a large chunk of change to be used for other expenses and money goals.
- Generally have a lower interest rate than longer-term loans:Typically, the shorter the term, the lower the interest rate. Interest rates for a 20-year mortgage will have a lower interest rate than a 30-year mortgage.
- Less interest paid over the life of the loan than a 30-year mortgage:Because the interest rate is lower on a 20-year mortgage, you'll not only have your home loan paid off sooner, but you'll be forking over less in interest over the duration of the loan.
- More affordable than shorter-term loans like 10- or 15-year mortgages:Because the life of the loan is stretched out for a longer duration than a 10 or 15-year mortgage, your loan payments will be lower. In turn, a 20-year mortgage will be more affordable.
Cons of a 20-year mortgage refinance
- Higher monthly payments than a 30-year mortgage:While the monthly payments for a 20-year mortgage are smaller than a 10- or 15-year mortgage, you can expect to pay more for a 30-year mortgage. In turn, it's less affordable as you'll need to pour more cash into paying off your house each month.
- More interest paid over the life of the loan than a shorter mortgage:You'll be paying more in interest fees on a 20-year mortgage than if you had a 10- or 15-year mortgage, which means it'll be more expensive.
Lender compare
Compare mortgage lenders side by side
Mortgage rates and fees can vary widely across lenders. To help you find the right one for your needs, use this tool to compare lenders based on a variety of factors. Bankrate has reviewed and partners with these lenders, and the two lenders shown first have the highest combined Bankrate Score and customer ratings. You can use the drop downs to explore beyond these lenders and find the best option for you.
Garden State Home Loans
NMLS: 409701
|
3.6
Rating: 3.6 stars out of 5
Bankrate Score
Bankrate scores are objectively determined by our editorial team. Our scoring formula weighs several factors consumers should consider when choosing financial products and services.
Recent Customer Reviews
Star ranking and total number reflects the lifetime customer reviews received while this lender has been an advertiser on Bankrate. To help serve you with relevant information, the customer reviews shown are limited to only those that this advertiser has received during the past 12 months.
Rating: 4.98 stars out of 5
5.0
564 reviews
Read full lender review
Homefinity
NMLS: 2289
|
State License: 4965
4.5
Rating: 4.5 stars out of 5
Bankrate Score
Bankrate scores are objectively determined by our editorial team. Our scoring formula weighs several factors consumers should consider when choosing financial products and services.
Recent Customer Reviews
Star ranking and total number reflects the lifetime customer reviews received while this lender has been an advertiser on Bankrate. To help serve you with relevant information, the customer reviews shown are limited to only those that this advertiser has received during the past 12 months.
Rating: 4.94 stars out of 5
4.9
1064 reviews
Read full lender review
20-year mortgage vs. other loan terms
While a 20-year mortgage means you'll pay off your loan faster than a 30-year mortgage, it also means you'll have higher monthly payments. The lower monthly payments that come with a 30-year mortgage mean you might be able to borrow a larger amount, as well.
Even if the total you'd like to borrow would be the same for a 20-year mortgage, you might have an easier time qualifying for a longer-term loan because of the difference in monthly payments.
When stacking a 20-year mortgage against a 10- or 15-year mortgage, it will take you longer to pay off the 20-year mortgage, but the monthly payments will be more affordable.
20-year mortgage vs. other loan terms: Interest and payments
15-year fixed-rate mortgage | 20-year fixed-rate mortgage | 30-year fixed-rate mortgage | |
---|---|---|---|
Loan principal | $380,000 | $380,000 | $380,000 |
Interest rate | 6.97% | 7.73% | 7.80% |
Monthly payment | $3,409 | $3,114 | $2,735 |
Total interest | $233,676 | $367,883 | $605,327 |
Total payments | $613,676 | $747,883 | $985,327 |
*Interest rates as of Oct. 3, 2023; monthly payments do not include insurance or taxes.
Is a 20-year mortgage refinance right for me?
Refinancing into a 20-year mortgage could make sense for you if:
- You already have a 10- or 15-year mortgage and are struggling to meet the monthly payments. Taking out a new loan with a longer repayment period could free up some cash in your budget.
- You have an adjustable-rate mortgage (ARM) nearing the end of its initial term. A 20-year fixed mortgage will give you more stability, since your rate won’t change for the lifetime of the loan.
- You can afford the cost of the new loan. It’s important to look closely at your household income and whether your mortgage plus additional housing expenses — think homeowners insurance and utilities — can fit your new payment into your current budget comfortably.
Keep in mind:You can pay off any mortgage loan at any pace you want. However, you'll need to make the minimum payment. By making extra principal payments each month (check with your lender on how this is done) you can turn a30-year loaninto a20-year, a 15-yearor a10-year mortgage. This way if you need extra cash, you can skip the additional principal payment any month you like.
When considering a refinance, it’s also a good idea to exploredifferent kinds of loans and loan termsto determine what’s best for you and your budget. Refinancing into a conventional fixed-rate loan from anFHA loancould mean significant savings since these government-insured loans usually have costly insurance premiums.
Other loans such as aVA home loanorARM(adjustable rate mortgage) don’t usually have these same insurance costs, but refinancing can still make sense for borrowers who can get a low enough rate to quickly offset their refinancing costs.
Alternatives to a 20-year mortgage refinance
If you want to pay down your mortgage but don’t want to be locked into higher monthly payments with a shorter term, consider making extra principal payments. You can do this several ways, including with biweekly payments, which can add up to sizable savings over the life of a loan.
20-year mortgage refinance FAQ
Additional refinance resources
- Refinancing resources
- Mortgage refinance calculator
- Best refinance lenders
- Guide on how to refinance
Meet our Bankrate experts
Written by: Jeff Ostrowski, Principal Reporter, Mortgages
I cover mortgages and the housing market. Before joining Bankrate in 2020, I spent more than 20 years writing about real estate and the economy for the Palm Beach Post and the South Florida Business Journal. I’ve had a front-row seat for two housing booms and a housing bust. I’ve twice won gold awards from the National Association of Real Estate Editors, and since 2017 I’ve served on the nonprofit’s board of directors.
Read more from Jeff Ostrowski
Edited by: Suzanne De Vita, Senior Editor, Home Lending
I’ve covered the housing market, mortgages and real estate for the past 12 years. At Bankrate, my areas of focus include first-time homebuyers and mortgage rate trends, and I’m especially interested in the housing needs of baby boomers. In the past, I’ve reported on market indicators like home sales and supply, as well as the real estate brokerage business. My work has been recognized by the National Association of Real Estate Editors.
Read more from Suzanne De Vita
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