20-Year Fixed Mortgage

Get a fixed rate and save on interest with a 20-year mortgage.

Who Are 20-Year Fixed Mortgages Best For?

A 20-year fixed mortgage is a great option for buyers who want the security and savings that come with a fixed interest rate and a shorter loan term.

Looking to refinance? A 20-year fixed is a great refi option, too.

How Do 20-Year Fixed Mortgages Work?

With a 20-year fixed mortgage, you’ll pay off your home loan over a period of 20 years. You’ll also have the comfort of a fixed interest rate for the life of the loan.

How Do I Qualify For A 20-Year Fixed Mortgage?

To qualify for a conventional 20-year fixed mortgage, you’ll need:

  • A minimum down payment of 3% - 5%.
  • A minimum FICO® Score of 580 - 620
  • What you need to qualify depends on loan type, but we generally recommend a debt-to-income ratio (DTI) of no more than 45%.
  • 3% - 6% of the purchase price for closing costs.
  • You’ll pay private mortgage insurance (PMI) if you put less than 20% down on a conventional loan. FHA loans have automatic upfront and annual mortgage insurance premiums.

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20-Year-Fixed Mortgage Rates

Product Rate APR
Conforming 20 Year Fixed 7.5% 7.954%
FHA 20 Year Fixed 7.125% 8.283%
VA 20 Year Fixed 7% 7.724%
20-year Fixed-Rate Loan: An interest rate of 7.5% (7.954% APR) is for the cost of 2.125 point(s) ($4,250.00) paid at closing. On a $200,000 mortgage, you would make monthly payments of $1,611.19. Monthly payment does not include taxes and insurance premiums. The actual payment amount will be greater. Payment assumes a loan-to-value (LTV) of 74.91%.20-year FHA Fixed-Rate Loan: An interest rate of 7.125% (8.283% APR) is for the cost of 2.00 Point(s) ($4,070.00) paid at closing. On a $203,500 mortgage, you would make monthly payments of $1,675.49. Monthly payment does not include taxes and insurance premiums. The actual payment amount will be greater. Payment assumes a loan-to-value (LTV) of 74.91%.

Payment includes a one-time upfront mortgage insurance premium at 1.75% of the base loan amount and a monthly mortgage insurance premium (MIP) calculated at 0.5% of the base loan amount. For mortgages with a loan-to-value (LTV) ratio of 74.91%, the 0.5% monthly MIP will be paid for the first 11 years of the mortgage term. Thereafter, the monthly loan payment will consist of equal monthly principal and interest payments until the end of the loan.20-year Fixed-Rate VA Loan: An interest rate of 7% (7.724% APR) is for a cost of 2.00 Point(s) ($4,086.00) paid at closing. On a $204,300 mortgage, you would make monthly payments of $1,583.94. Monthly payment does not include taxes and insurance premiums. The actual payment amount will be greater. Payment assumes a loan-to-value (LTV) of 76.52%.

VA loans do not require PMI. The VA loan is a benefit of military service and only offered to veterans, surviving spouses and active duty military.
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20-Year Fixed Mortgage Benefits

  • Your interest rate will stay fixed for the life of the loan.
  • You may be able to secure a lower interest rate than you would get with a 30-year fixed mortgage.
  • A lower rate could save you money spent on interest, compared to a 30-year fixed.
  • You can put as little as 3% down when buying a primary home.
  • You can pay off your mortgage early without prepayment penalties.
  • You can refinance for up to 97% of your home’s value.

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Mortgage Insurance Requirements

If you put less than 20% down on your conventional 20-year mortgage, you’ll have to pay primary mortgage insurance (PMI).

  • PMI typically costs 0.5% – 1% of your mortgage amount per year, paid over 12 payments.
  • You may be able to request to cancel PMI after you reach 20% equity in your home.
  • PMI typically gets canceled automatically once you reach 22% equity.

FHA loans come with upfront mortgage insurance premiums of 1.75% in most cases. You’ll also pay annual mortgage insurance premiums in monthly installments. If you have a down payment of 10% or more, these last 11 years. Otherwise, they remain for as long as you have the loan.