Compare today's 20-year fixed mortgage rates
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About These Rates: The lenders whose rates appear on this table are NerdWallet’s advertising partners. NerdWallet strives to keep its information accurate and up to date. This information may be different than what you see when you visit a lender’s site. The terms advertised here are not offers and do not bind any lender. The rates shown here are retrieved via the Mortech rate engine and are subject to change. These rates do not include taxes, fees, and insurance. Your actual rate and loan terms will be determined by the partner’s assessment of your creditworthiness and other factors. Any potential savings figures are estimates based on the information provided by you and our advertising partners.
Trends and insights
NerdWallet’s mortgage rate insight
On Monday, November 28th, 2022, the average APR on a 30-year fixed-rate mortgage fell 5 basis points to 6.476%. The average APR on a 15-year fixed-rate mortgage fell 8 basis points to 5.851% and the average APR for a 5-year adjustable-rate mortgage (ARM) fell 3 basis points to 6.459%, according to rates provided to NerdWallet by Zillow. The 30-year fixed-rate mortgage is 6 basis points lower than one week ago and 341 basis points higher than one year ago.
A basis point is one one-hundredth of one percent. Rates are expressed as annual percentage rate, or APR.
Current mortgage and refinance rates
|30-year fixed-rate FHA||5.534%||6.316%|
|30-year fixed-rate VA||5.810%||6.211%|
How do I find current 20-year mortgage rates?
NerdWallet’s mortgage rate tool can help you find competitive 20-year fixed mortgage rates. In the filters above, enter a few details about the loan you’re looking for, and you’ll get a personalized rate quote in moments, without providing any personal information. From there, you can start the process to get preapproved for your home loan. It’s that easy.
Choose two or three that seem to best fit what you’re looking for and get set to take the next step.
What is a 20-year fixed-rate mortgage?
A 20-year fixed-rate mortgage is a home loan that maintains the same interest rate and monthly principal-and-interest payment over a 20-year loan period.
A 20-year fixed-rate mortgage is a balanced-term loan that few people think to consider. While they provide a fixed principal and interest payment, you’re not stretching out the payments for as long as the traditional 30-year mortgage — and that saves a great deal of interest.
And your monthly payments aren’t quite as high as the shorter 15-year term.
For these same reasons, it’s also a good loan term to consider when refinancing.
How do I compare current 20-year mortgage rates?
The more lenders you check out when shopping for mortgage rates, the more likely you are to get a lower interest rate. Getting a lower interest rate could save you hundreds of dollars over a year of mortgage payments — and thousands of dollars over the life of the mortgage.
With NerdWallet’s easy-to-use mortgage rate tool, you can compare current 20-year home loan interest rates from several lenders.
What is a good 20-year fixed mortgage rate?
When you apply for a 20-year loan — hopefully with at least three lenders to make sure you’re getting the best deal — you’ll receive a Loan Estimate from each lender. Comparing the rates and fees side by side will help you determine the very best offer.
The 20-year fixed isn’t your only option. The 15-year fixed loan is also a good choice. Adjustable-rate mortgages have low monthly payments during the first few years of the loan, making them popular for high-dollar loans.
With the NerdWallet mortgage rate tool, you can investigate all available loan options.
Pros and cons of a 20-year fixed mortgage
A 20-year fixed mortgage isn’t for everyone. Here are some benefits and drawbacks to a 20-year term loan:
Lower payments. Because they’re spread out over 20 years, the monthly payments on a 20-year fixed mortgage are lower than for loans with shorter terms, like a 10- or 15-year mortgage.
Interest savings. By choosing a 20-year rate rather than the traditional 30-year mortgage, you’ll shell out a lot less interest over the life of the loan — and pay off your home 10 years sooner.
Predictability. Because it’s a fixed rate, the monthly principal and interest payments are the same over the life of the loan. Keep in mind that the payments include taxes and insurance, which can go up and even sometimes go down.
Bigger loan. Because the monthly payments on a 20-year loan are smaller than on a shorter loan (such as 15 or 10 years), you can borrow more.
Higher interest rate. Because the lender is tying up its money longer, the interest rate on 20-year fixed mortgage is higher than on, say, a 10-year loan.
More interest overall. You pay more interest over the life of a 20-year mortgage than a shorter-term loan because you make more payments.
How are mortgage rates set?
At a high level, mortgage rates are determined by economic forces that influence the bond market. You can’t do anything about that, but it’s worth knowing: Bad economic or global political worries can move mortgage rates lower. Good news can push rates higher.
What you can control are the amount of your down payment and your credit score. Lenders fine-tune their base interest rate on the risk they perceive to be taking with an individual loan.
So their base mortgage rate is adjusted higher or lower for each loan they offer. Higher mortgage rates for higher risk; lower rates for less perceived risk.
So the bigger your down payment and the higher your credit score, generally the lower your mortgage rate.
» MORE: Get your credit score for free
What’s the difference between interest rate and APR?
The interest rate is the percentage that the lender charges for borrowing the money. The APR, or annual percentage rate, is supposed to reflect a more accurate cost of borrowing. The APR calculation includes fees and discount points, along with the interest rate.
APR is a tool used to compare loan offers, even if they have different interest rates, fees and discount points.
A major component of APR is mortgage insurance — a policy that protects the lender from losing money if you default on the mortgage. You, the borrower, pay for it.
Lenders usually require mortgage insurance on loans with less than 20% down payment (in a home purchase) or less than 20% equity (in a refinance).
Learn more about fixed-rate loans:
About the author: Holden is NerdWallet's authority on mortgages and real estate. He has reported on mortgages since 2001, winning multiple awards.
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