Today’s 20-Year Refinance Rates

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ByChristopher Boston
Edited byMegan Hull
ByChristopher Boston
Edited byMegan Hull

Updated: August 28, 2023

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Refinancing is when homeowners replace their current mortgage with a new one, usually to get a lower interest rate or change their loan term. Among the available options is a 20-year refinance, a popular choice because it balances manageable payments with faster equity building.

Current 20-Year Refinance Rates

Interest rates for 20-year refinance mortgages frequently change; monitoring them is vital to determining the best time to refinance. Rates also vary between loan types: comparing your options using the rate table below can help you better understand what's available and help you find the deal that gives you the most benefits.

What Is a 20-Year Refinance Mortgage?

A 20-year refinance loan replaces your original mortgage, regardless of its term, with a new one that you'll pay off in 20 years. Opting for a 20-year term might lead to higher monthly payments than longer terms, but paying off your loan faster may save you money in the long run.

20-Year Refinance Options

Why is it important for borrowers to know their options? Because every refinance choice has unique characteristics that can affect your financial journey. Rates not only vary over time but also between different refinance options. The three options available for a 20-year refinance are fixed, adjustable refinance and jumbo refinance.

Refinance Option
What It Is
Why You Should Consider It

20-Year Fixed Refinance

Locks at a constant rate for 20 years, providing predictability.

Stability in monthly payments, no surprises in interest charges.

20-Year Adjustable Refinance

Begins with a fixed rate, then adjusts periodically according to market conditions.

Potential for lower initial rates; flexibility if you plan to move before rates adjust.

20-Year Jumbo Refinance

A larger loan that exceeds conventional limits, suited for high-value properties.

Enables refinancing of luxury or higher-value homes; often offers competitive interest rates.

Pros and Cons of a 20-Year Refinance Mortgage

The right refinance choice for you will depend on your unique needs. Weighing the advantages and disadvantages of a 20-year refinance can help you align with your financial goals and avoid unnecessary risks. The more you know, the better you can tailor your refinance to your needs.


Faster Equity Building: Pay off your home more quickly, allowing you to own your home outright sooner. This can provide financial freedom and peace of mind.

Higher Monthly Payments: While you pay off the loan faster, the monthly payments are typically higher, which might strain your budget, especially if unexpected expenses arise.

Lower Total Interest Paid: By choosing a shorter loan term, you'll pay less in interest over the life of the loan, potentially saving thousands of dollars.

Less Budget Flexibility: The higher monthly payments might leave you with less disposable income for other financial goals or unexpected needs, limiting your budget flexibility.

Stable Monthly Payments: If you opt for a fixed rate, you'll have predictable monthly payments, which makes budgeting easier and shields you from interest rate fluctuations.

Stricter Qualification Criteria: Shorter loan terms often come with more stringent credit and income requirements, making it harder for some borrowers to qualify.

Potential for Lower Rates: 20-year terms often offer lower interest rates compared to longer terms, which can translate to even more savings over the life of the loan.

Limited Access to Equity: With higher monthly payments, you may have less flexibility to tap into your home equity for other financial needs or opportunities.

Enhanced Financial Control: By choosing a 20-year term, you're taking a proactive stance in your financial journey, potentially aligning your mortgage payoff with other life goals.

Risk of Opportunity Cost: By focusing on paying off your mortgage more quickly, you might miss investment opportunities elsewhere that could potentially offer higher returns.

Comparing a 20-Year Refinance With Other Terms

Each mortgage term offers unique benefits and trade-offs that align with different financial goals and lifestyles. You can identify the mortgage that best fits your needs by comparing 20-year refinance options with 15-year, 30-year and adjustable-rate terms.

20-Year Refinance vs. 30-Year Refinance

Opting for a 20-year term usually means higher monthly payments than a 30-year term, but you'll pay off the loan faster and often at a lower interest rate. In comparison, a 30-year refinance spreads payments over a longer period, resulting in lower monthly bills but typically a higher overall interest cost. Your choice between these two depends on your current financial situation and long-term goals, whether prioritizing lower monthly expenses or aiming for quicker homeownership without the mortgage.

20-Year Refinance vs. 15-Year Refinance

A 20-year refinance offers a balanced approach, with manageable monthly payments and a reasonable timeframe to own your home outright. Meanwhile, a 15-year refinance means larger monthly payments, but you'll pay off your home in a shorter time and usually save on interest. A 15-year refinance might be a better choice if you have extra room in your budget and want to be mortgage-free sooner. If you prefer more financial flexibility each month, a 20-year term could be the better fit.

20-Year Refinance vs. Adjustable Rate Refinance

Fixed 20-year refinance rates provide the comfort of knowing your interest rate won't change. You'll have the same monthly payment throughout the life of the loan. Adjustable rates, on the other hand, can change based on market conditions, so your payment might go up or down.

While adjustable rates might start with a lower figure, there's a risk of them increasing over time. If stability in your budget is important to you, a fixed 20-year rate could be the right choice. If you're comfortable with a bit of risk and want to potentially save money initially, an adjustable rate may better suit your needs.

Is a 20-Year Mortgage Refinance Right for Me?

Choosing a 20-year mortgage refinance is a personal decision, depending on various factors unique to your financial situation. To assess whether it's the right move for you, consider the following:

Current Financial Status

Evaluate your current income, expenses and savings. A 20-year refinance typically means higher monthly payments than longer terms, but you'll save on interest in the long run.

Long-Term Goals

Think about your financial future, like saving for retirement or other large expenses. A 20-year term helps you build equity faster and pay off the mortgage sooner, freeing up funds for other goals.

Interest Rate Comparison

Look at the difference in interest rates between a 20-year mortgage and other terms. Rates for a 20-year mortgage refinance might be a viable option if they offer substantial savings and fit your budget.

Risk Tolerance

Determine your comfort with financial risk. A 20-year fixed refinance provides stability but may require higher payments. Assess your ability to handle these without straining your budget.

Loan Purpose

Consider why you're refinancing. If it's to pay off the loan faster and save on interest, a 20-year term might align with your needs.

Understanding these factors can guide you to the right decision, catering to your unique financial landscape. There's no one-size-fits-all answer, so take the time to reflect on these points and consult with a financial professional if needed.

Real-World Examples Where a 20-Year Refinance Is a Good Fit

Recognizing specific situations where a 20-year refinance aligns with your goals can help you make strategic financial choices. By identifying these scenarios, you can gauge if this refinancing option suits your needs. Here are some situations when securing 20-year refinance rates might be a wise decision.

Jenny, the Career Climber

Jenny, a 30-year-old tech genius, beams with pride as she hangs up her newly framed promotion certificate in her office. A substantial raise accompanies her new title, and she's determined to make the most of it. Owning a beautiful home on a 30-year mortgage, she dreams of being mortgage-free faster to invest in her future. A friend suggests looking into 20-year refinance rates, and it's an enlightening moment for Jenny. She finds a 20-year refinance that suits her increased income, allowing her to make larger monthly payments. It's the perfect strategy, shortening her loan term and saving her thousands in interest.

Mark and Emily, the Soon-to-Retire Couple

Mark and Emily share a serene evening on their porch, discussing their retirement. They've worked hard and saved well, but a nagging thought lingers — their current mortgage won't be paid off before they retire in 20 years. A 20-year refinance becomes the solution, fitting seamlessly into their retirement timeline. By choosing this path, they'll be mortgage-free as they begin their new life phase.

Tom, the Financial Strategist

Tom, a 40-year-old financial planner, always looks for the next best step in building his personal wealth. Comfortable with higher monthly payments for the sake of long-term gains, he's drawn to the idea of building equity faster. While researching 20-year refinance rates, he realizes that he can greatly reduce interest costs over the life of the loan by refinancing. He decides to increase his monthly payments with a 20-year refinance, meeting his equity goals more rapidly.

Sarah, the Debt Reducer

Sarah, a 35-year-old nurse and single mom, lays awake, burdened by multiple high-interest loans. She longs for a clear path to financial freedom. In a conversation with a financial consultant, the idea of a 20-year refinance arises. By opting for a 20-year refinance, she can bundle her debts into one manageable payment, reducing interest and providing structure.

Every financial journey is unique. These real-world situations show how you can tailor a 20-year refinance to various financial circumstances and goals. Consider your situation, and you might find that it's the perfect fit for you.

Finding the Best 20-Year Refinance Rates Today: Strategies for Borrowers

Lower rates mean less interest over the life of the loan, saving you money. These strategies can help guide you if you're determined to find the best rates:

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    Shop Around

    Don't settle for the first offer you find: compare rates from different lenders. By doing so, you may find a deal that could save you thousands over the life of the loan. For example, a 0.25% difference in interest rate can make a significant difference in your total interest paid.

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    Improve Your Credit Score

    A higher credit score often translates into a lower interest rate. Pay your bills on time, reduce outstanding debt and refrain from opening new credit accounts to give your score a boost. Lenders view this as a sign of financial responsibility, rewarding you with better rates.

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    Consider Different Lenders

    Banks, credit unions and online lenders might offer different 20-year refinance rates. Each has its strengths and could provide a better fit for your situation. Exploring various options ensures you don't overlook a hidden gem.

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    Understand Loan Fees

    Interest rates aren't the only cost associated with refinancing. Be aware of fees like application or origination fees. Sometimes, a lower rate comes with higher fees, so it's essential to look at the entire package. Ask for a detailed explanation of all costs to see the full picture.

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    Consult With a Financial Professional

    Professional guidance can be invaluable if you're unsure of your next steps. A financial professional can help you analyze offers and align them with your financial goals. This way, you're more likely to make a choice that complements your overall financial strategy.

Frequently Asked Questions

Not everyone is familiar with how 20-year refinance rates work, so having questions is normal. We gathered some commonly-asked queries to provide you with additional information.

What is a 20-year mortgage refinance?
Why compare 20-year mortgage rates?
What are the benefits of a 20-year fixed-rate refinance vs. a longer-term fixed?
Is a 20-year refinance right for me if I plan to sell my home soon?
Can I refinance into a 20-year mortgage if I currently have a different term?
What factors influence 20-year refinance rates?
Can I refinance a jumbo mortgage into a 20-year term?
Can I switch from an adjustable-rate mortgage (ARM) to a 20-year fixed-rate refinance?
Are there any fees associated with a 20-year refinance?

About Christopher Boston

Christopher Boston headshot

Christopher (Croix) Boston was the Head of Loans content at MoneyGeek, with over five years of experience researching higher education, mortgage and personal loans.

Boston has a bachelor's degree from the Seattle Pacific University. They pride themselves in using their skills and experience to create quality content that helps people save and spend efficiently.