Compare Current 20-Year Mortgage Rates

Current Mortgage Rate Trends

Rates for 20-year mortgages have generally hovered between 6% and 7% in recent history, albeit with a few brief dips below 6%. These rates are heavily influenced by the yield on the 10-year Treasury note, which shifts based on investor expectations around monetary policy, inflation and other economic indicators.

The current stubbornly high mortgage rates reflect ongoing economic uncertainty, including concerns about inflation and U.S. trade policies. When markets feel unstable, investors tend to demand higher yields on bonds, driving mortgage rates higher as a result.

Here's where national mortgage rates currently stand so you can see how 20-year loan rates compare. Annual percentage rate (APR) includes the interest rate plus any fees or additional costs the lender charges.

^*Source: Curinos LLC, July 2025; assumes a 720 FICO^® Score^Θ, $350,000 mortgage
^**Source: Optimal Blue via FRED, July 2025
Notes: Rates can vary by data source; monthly payment calculation uses APR and assumes a $350,000 mortgage and 20% down

Mortgage Rate Trends for the Last 5 Years

During the pandemic, mortgage rates dropped to historic lows as the Federal Reserve took steps to support the housing market and broader economy.

In 2022, rates climbed sharply as the Fed began raising the federal funds rate to fight inflation. While the federal funds rate doesn't directly set mortgage rates, it influences the 10-year Treasury yield, which lenders use as a benchmark for pricing.

Since peaking in October 2023, mortgage rates have stayed relatively flat amid ongoing economic uncertainty.

30-Year Mortgage Rate Trends 2020 to 2025

What Affects 20-Year Mortgage Rates?

Mortgage loans with 20-year terms tend to offer lower interest rates compared to 30-year mortgages. However, the gap between the two can be narrow at times. This is because shorter repayment terms are typically less risky for lenders, even as they come with a higher payment.

With that said, here are some other factors that can influence the interest rate you pay on a 20-year mortgage loan:

• Credit score: Your credit score gives lenders a quick look at how you manage debt. Higher scores usually reflect on-time payments and responsible borrowing, which reduce risk for lenders. In turn, borrowers with higher credit scores often qualify for lower interest rates.
• Debt-to-income ratio (DTI): Your DTI shows how much of your monthly income goes toward debt payments. A higher DTI suggests greater risk, which can lead to a higher mortgage rate.
• Loan amount: Larger loan amounts increase a lender's potential loss if you default. As a result, borrowing more can lead to higher interest rates.
• Loan type: The type of mortgage you choose—fixed-rate, adjustable-rate or specialty products—can also affect your interest rate. Fixed-rate 20-year mortgages typically offer more rate stability but may be priced higher than adjustable-rate alternatives.

20-Year Mortgage Requirements

The minimum requirements for a 20-year mortgage loan are generally the same as a 30-year loan. However, because the 20-year loan demands higher monthly payments, it may be more difficult for some homebuyers to qualify based on DTI criteria.

With that in mind, here are some general guidelines to keep in mind:

• Credit score: Most conventional lenders require a minimum credit score of 620 for 20-year mortgages, but a higher score can boost your approval odds and help you secure a lower interest rate. For 20-year FHA loans, the standard minimum score is 580 but can go as low as 500.
• DTI: Lenders generally look for a DTI below 43%, though some may accept ratios as high as 50% if you have strong credit or significant assets.
• Income and employment: Lenders typically want to see at least two years of steady income, confirmed through documents like W-2s, pay stubs or tax returns. Self-employed borrowers may need to provide more comprehensive income verification.
• Down payment: While many 20-year mortgage loans require a down payment of 5%, some conventional programs allow as little as 3% down depending on your credit profile and loan terms. For FHA loans, the minimum down payment is 3.5%, and 20-year VA loans have no down payment requirement at all.

Pros and Cons of a 20-Year Mortgage

Before applying for a 20-year mortgage, it's important to weigh the benefits and drawbacks to see how well the loan fits your financial goals and budget. Here's what to consider.

How to Get the Best 20-Year Mortgage Rate

While some factors that influence 20-year mortgage rates are outside your control, there are several ways to boost your chances of locking in the lowest possible rate:

• Improve your credit score. Lenders reserve the best rates for borrowers with strong credit. Review your credit report, pay down debts and address any errors to help improve your FICO^® Score before applying.
• Shop around with multiple lenders. Interest rates and loan terms can vary significantly between lenders. Comparing several offers can help you find the most competitive deal.
• Make a larger down payment. Putting more money down reduces the lender's risk and can lead to a better interest rate, especially if it brings your loan-to-value ratio below key thresholds.
• Lower your DTI. A lower DTI shows lenders you have room in your budget to handle your mortgage payments, which may help you qualify for a more favorable rate.
• Demonstrate stable income and employment. Consistent earnings and long-term employment history can make you a more attractive borrower, which may help you secure better loan terms.
• Consider paying points. Some lenders allow you to pay discount points upfront to reduce your interest rate. This can be a smart move if you plan to stay in your home long enough to recoup the cost.

Alternatives to a 20-Year Mortgage

A 20-year mortgage can offer a balance between manageable monthly payments and long-term savings on interest, but it's not the only option. Here are a few alternatives worth considering:

• 15-year conventional mortgage: This loan has a shorter term and typically comes with lower interest rates. You'll pay off your home faster and save more on interest, but monthly payments will be even higher compared to a 20-year loan.
• 30-year conventional mortgage: A 30-year loan spreads payments out over a longer period, resulting in lower monthly payments. However, you'll pay more in interest over the life of the loan compared to shorter terms.
• Adjustable-rate mortgage: An ARM starts with a lower fixed interest rate for a set period—usually three, five, seven or 10 years—after which the rate adjusts periodically. ARMs can be cost-effective if you plan to move or refinance before the rate resets, but they come with the risk of rising payments down the line.

The Bottom Line

A 20-year mortgage can strike the right balance between saving on interest and managing your monthly budget. However, qualifying for a competitive rate starts with strong credit. Before you apply, it's smart to check your credit profile and identify opportunities for improvement.

Experian's free credit monitoring service can help you stay on top of your FICO^® Score and track changes to your Experian credit report, giving you the insight you need to make informed borrowing decisions. Preparing now could mean big savings over the life of your mortgage.