mortgagecalculators.pro

20 Year Mortgage Payments

A 20-year mortgage sits between the low payment of a 30-year and the aggressive payoff of a 15-year, yet it is rarely advertised. The monthly cost is only moderately higher than a 30-year while total interest drops by more than a third. Enter your loan amount and rate above to compare.

Your loan

Use the rate you were quoted — the starting value is only an example, not a rate quote.
Taxes, insurance and extra payments
Your lender sets this — check your loan estimate. Charged only while the balance is above 80% of the purchase price.
Estimated monthly payment Illustrative

$0.00

on a $0 loan at 0% loan-to-value

Principal & interest
$0.00
Property tax
$0.00
Home insurance
$0.00
PMI
$0.00
HOA dues
$0.00
Total monthly
$0.00
Where each year's payments go
Year 1Year 30
Principal $0 Interest $0

Principal overtakes interest in month 0 (), then most of every payment is yours.

Total of payments
$0
Paid off
PMI cancellable
month

Estimates from the figures you entered, not a loan offer. Taxes and insurance vary by property; your lender's escrow figure is the one that counts.

The Numbers Between 15 and 30

Take a $300,000 balance at an illustrative 7 percent rate: the 20-year monthly payment comes to approximately $2,326 — only about $330 more than the 30-year payment of $1,996 but $371 less than the 15-year payment of roughly $2,697. That middle position makes the 20-year term accessible to borrowers who find the 15-year squeeze uncomfortable but want to do meaningfully better than 30 years.

Total interest illustrates the payoff. The 30-year term produces approximately $418,500 in interest. The 20-year term cuts that to about $258,200 — a saving of roughly $160,300. The 15-year term saves more ($233,100 versus the 30-year) but demands an extra $371 per month to get there. The 20-year captures most of the 15-year benefit at a substantially lower monthly cost.

This makes the 20-year term particularly attractive for refinancers who have already paid several years on a 30-year loan and want a concrete end date without the payment shock of 15 years.

Why It Is Hard to Find

Despite the favourable arithmetic, 20-year fixed-rate mortgages receive little marketing. Lenders and rate-comparison sites highlight 15 and 30 as the standard pair, leaving 20 as a menu item most borrowers never consider. Availability varies: some lenders offer it as a standard product, others treat it as a custom term that may carry a slightly different rate.

The opportunity cost argument applies here as it does to any shorter term. The $330 per month above the 30-year payment could be invested instead, and whether the guaranteed interest saving outperforms potential investment returns depends on the rate environment and personal risk tolerance.

For a side-by-side view of shorter versus longer terms, the 15-vs-30-year calculator provides a dual-column comparison. To see how the 20-year stacks up against even more aggressive repayment, the 10-year payment calculator shows the extreme end of the spectrum.

Not all lenders advertise a 20-year fixed product. Ask your lender specifically or request a custom term quote.

Year-by-year amortization schedule
Balances at the end of each year, from the figures above
YearPrincipal paidInterest paidBalance

Related calculators

Mustafa Bilgic — Editor. Last reviewed .

Method and sources: