20 Year Fixed-rate Mortgage Calculator
Use the following tabs to switch between current local 20 year FRM rates & our calculator which estimates 20 year mortgage loan payments.
Are you thinking of buying a home? This calculator will help you compute a monthly payment and a loan amortization schedule. First enter the home price and the loan you would need to secure to make the purchase. Then provide a suitable interest rate, loan term, real estate tax percentage, annual homeowners insurance percentage, and a prime mortgage insurance (PMI) percentage.
Click on “Calculate ,” and you’ll receive a monthly principal and interest payment, as well as monthly taxes, insurance, and PMI payments. Click on “Create Amortization Schedule,” and a separate browser window will open with your month-to-month payment plan.
Do you need to know the current market conditions in your local area? We publish current San Jose 20-year fixed mortgage rates to help you make accurate calculations and connect with local lenders.
Today's San Jose 20-Year Mortgage Rates
The following table shows current mortgage rates in San Jose. Adjust your loan inputs to match your scenario and see what rates you qualify for.
About 20 Year Fixed-rate Mortgages
Fixed-rate mortages (FRMs) get their name because the rate of interest charged throughout the duration of the loan is static or fixed. This means the rate of interest & monthly payment toward principal and interest will not change throughout the duration of the loan. The most popular FRM is the 30-year loan as it enables consumers to lock in a low rate of interest for an extended period of time & have low monthly payments. The 15-year is the next most popular fixed-rate loan, with loans of other durations far less common. Both the 10-year and 20-year combine to have under a 10% share of the market.
FRMs are a one-way bet for consumers. If interest rates rise the home buyer is protected from spiking rates. If interest rates fall homeowners can refinance into a lower rate loan.
Fixed vs ARM
Adjustable-rate mortgages (ARMs) get their name because the rate of interest is variable and can change as economic conditions change. Most ARM loans are hybrid loans which have an introductory period that acts similarly to a FRM in the initial portion of the loan. For a 5/1 ARM the first 5 years would charge a set rate of interest & then after the 5 year introductory period is up the rate of interest resets annually based on the performance of a referenced index like COFI or LIBOR. ARM loans have caps on how much the interest rate can shift on the initial adjustement, how much the interest rate can shift on subsequent adjustments & how much rates can rise over the duration of the loan. Typically the initial & subsequent single adjustment limit is set to 1% or 2% while the lifetime rate cap is usually set to 5% or 6% above the rate initially charged on the loan.
When interest rates are high or rising, consumers frequently opt for ARMs. When interest rates are relatively low (as they are currently) most buyers choose fixed-rate mortgages. ARMs peaked out at about 70% marketshare in 1994 but have fallen precipitously in share since the Great Recession.
Monthly Payments
The following table shows monthly principal & interest payments for 10, 15, 20 & 30-year FRMs along with 5/1 ARMs on a home loan of $220,000. These rates were current as of publication, though market conditions regularly change.
| Loan | 5/1 ARM | 30-yr FRM | 20-yr FRM | 15-yr FRM | 10-yr FRM |
|---|---|---|---|---|---|
| Initial Interest Rate | 3.599% | 3.881% | 3.633% | 3.25% | 2.987% |
| Maximum Interest Rate | 8.599% | 3.881% | 3.633% | 3.25% | 2.987% |
| Initial Monthly Payment | $1,000.10 | $1,035.28 | $1,291.00 | $1,545.87 | $2,123.02 |
| Maximum Monthly Payment | $1,582.62 | $1,035.28 | $1,291.00 | $1,545.87 | $2,123.02 |
| Average Monthly Payment | $1,461.66 | $1,035.28 | $1,291.00 | $1,545.87 | $2,123.02 |
| Total Interest Expense | $306,195.82 | $152,700 | $89,840 | $58,257 | $34,762 |
| Total of All P&I Payments | $526,195.82 | $372,700 | $309,840 | $278,257 | $254,762 |
To clarify the impacts of interest & loan term on the payments, other costs of homeownership outside of P&I - which include home maintenance, property taxes & insurance - are not included in this table. For the ARM loan it is presumed the interest rate will rise 2% on the initial adjustment & 1% on subsequent adjustments to a maximum interest rate of 8.599% charged from the 8th through 30th years of the loan.
Advantages of the 20 Year Home Loan
The home is typically the largest purchase most consumers will ever make in their lifetimes. While the 30-year loan is more popular, the 20-year builds equity faster & charges a lower rate of interest which saves even more money. The above table shows how a person choosing the 20-year option can save nearly $90,000 in interest by paying about $260 more per month than they would pay on a 30-year loan. Some buyers who choose a 30-year loan may believe they'll make plenty of extra payments along the way to pay off their home faster, but money sitting around often finds a way to be spent. The 15-year forces greater discipline & allows outright ownership of the home in half the time.
Disadvantages of the 20 Year Home Loan
The 20-year has a higher initial monthly payment than a 30-year loan or an ARM, so it will require more income to qualify for. That said, it is still a relatively great deal for typical home owners. About the only people who shouldn't choose an FRM in a low-rate environment are people who plan to move in the next few years or people who are looking for the absolute lowest cost of financing to flip fixer upper homes.
Most lenders should offer a broad array of mortgage options, however some smaller local credit unions and other lenders with a small footprint may only offer FRMs in 30 & 15 year durations.
Market Share
The BLS conducts a Consumer Expenditure Survey which tracks major expenses like home purchases. Between 2004 & 2014 their survey found the following market composition.
| Instrument | Number | Percent of Sample |
|---|---|---|
| 30-year FRM | 107,991 | 61.49% |
| 15-year FRM | 25,717 | 14.64% |
| FRM With Other Terms | 17,221 | 9.81% |
| Non-FRM (ARMs & atypical instruments) | 24,685 | 14.06% |
Source: U.S. Bureau of Labor Statistics, 2004-2014 Consumer Expenditure Survey pooled sample.
The composition of the market has changed significantly over time, with consumers expressing greater preference for longer-duration FRMs as interest rates have fallen. Both the 10-year and 20-year fall under the "Other FRMs" category.
| Year | Sample Size | 30-yr FRM | 15-yr FRM | Other FRMs | Non-FRMs |
|---|---|---|---|---|---|
| 2004 | 15,050 | 47.4% | 17.9% | 10.4% | 24.3% |
| 2005 | 17,666 | 47.0% | 16.6% | 10.0% | 26.4% |
| 2006 | 18,407 | 48.3% | 14.0% | 10.3% | 27.4% |
| 2007 | 17,257 | 56.4% | 15.0% | 11.4% | 17.4% |
| 2008 | 17,314 | 65.5% | 15.0% | 10.6% | 9.0% |
| 2009 | 17,155 | 65.6% | 15.1% | 9.8% | 8.5% |
| 2010 | 16,265 | 68.0% | 14.2% | 9.3% | 8.5% |
| 2011 | 15,133 | 71.7% | 12.8% | 9.1% | 6.4% |
| 2012 | 14,649 | 70.7% | 13.6% | 8.9% | 6.8% |
| 2013 | 13,806 | 70.7% | 13.3% | 8.8% | 7.2% |
| 2014 | 12,912 | 70.8% | 13.4% | 8.5% | 7.3% |
Paying your mortgage off quickly can help you get ahead financially & increase your flexibility later in life.
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