Can You Get a 20-Year Mortgage?

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By Bill MacDonald Updated February 11, 2022

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Is there a 20 year mortgage

The 20-year fixed-rate mortgage makes sense if you want to pay off the mortgage quickly. 

A monthly over payment on top of the required monthly payment can help you pay off your mortgage even faster.

Plus, the 20-year fixed interest rate is lower than the 30-year rate — but keep in mind that it's higher than the 15-year interest rate. 

20-Year Mortgages vs. 30- Year Mortgages

The obvious benefit of the 20-year mortgage is that the loan will payoff in 20-years. Plus, the interest rate is lower than the 30-year mortgage rate by about 0.25%.

However, compared to the 30-year mortgage, your monthly payment will be higher because there are only 240 payments in the 20-year mortgage, compared to 360 payments with a 30-year mortgage.

30-year Mortgage 20-year Mortgage Difference
Loan Amount 100,000 100,000  
Monthly Payment $553 $660 $107
Interest Rate 5.25% 5.00%  
Total Interest Paid $98,793 $58,389 $40,404
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Frequently Asked Questions About 20-Year Fixed Mortgage Rates

When can you get a 20-year mortgage?
20-year mortgages are available for purchase and refinance loans.

How can I get the lowest mortgage rate?
The best way to get a lower interest rate is to increase your credit score. Many people are surprised to learn that credit scores are tied to interest rates. 

Take a look at your credit report — it's free from Equifax, Experian, and TransUnion.

Is a 20-year mortgage a good idea?
Everybody's situation is different, but if you intend to make over payments on your mortgage, then a 20-year mortgage is a good idea due to the lower interest rate.

Is a 20-year mortgage worth it?
If you can afford the payment, a 20-year mortgage is worth it because of the interest savings.

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