What is the rate on a 20 year fixed mortgage?

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asked May 19, 2019 in Real Estate - Renting by eizabeterrazas (320 points)
What is the rate on a 20 year fixed mortgage?

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answered May 20, 2019 by Minty (132,850 points)
The interest rate on a 20 year fixed mortgage can sometimes be lower than the interest rates on a 30 year fixed mortgage.

Although you'll usually pay a much higher monthly payment on the 20 year fixed mortgage vs the 30 year fixed mortgage but you'll have the mortgage paid off 10 years sooner and save quite a bit of money in interest over the life of the mortgage.

Rates for a 20 year fixed mortgage are between 3.875% and 3.905% which is cheaper than the rates on a 30 year mortgage.

I started out buying my home using a 30 year mortgage but 8 years in I refinanced the 30 year mortgage to a 20 year mortgage which lowered my interest rate although I have a higher monthly payment.

I refinanced because I got a better job and could afford the extra monthly payments which will pay off the home sooner than waiting 30 years which is a pretty long time.

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