A 20-Year Mortgage Can Cost Less Each Month Than a 15-Year
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A 20-year mortgage kept the monthly payment well below a 15-year loan’s, even with a higher rate, in FreeRateUpdate’s lender network. On October 8 the best advertised 20-year fixed purchase rate we recorded was 6.375%, against 5.99% on the 15-year.
The 15-year carried the lower rate on all 32 days since September 1, by a quarter point to about six tenths of a point. On October 8 those advertised rates, which aren’t quotes, had APRs of 6.616% on the 20-year and 6.289% on the 15-year.
| Date | 20-year | 15-year |
|---|---|---|
| September 1 | 5.625% | 5.25% |
| September 15 | 5.99% | 5.375% |
| September 28 | 6.25% | 5.75% |
| October 8 | 6.375% | 5.99% |
What the lower payment is worth
Take a $300,000 loan at the October 8 rates, for a buyer who qualifies with the lender, paid on schedule with no refinancing or extra payments. The 20-year’s principal and interest payment, before the points and other charges, is about $2,215 a month, against $2,530 on the 15-year.
That’s about $315 less a month, with nearly identical points, 1.671 against 1.674. Its scheduled interest, though, comes to about $232,000 against $155,000 on the 15-year, about $76,000 more.
Source: FreeRateUpdate As Low As rate history, best advertised rates in our lender network, recorded September 1 to October 8, 2026. Captured data: 20-year purchase · 15-year purchase.
