Atlas Crown’s guide to 20 year vs. 30 year mortgage rates
March 12, 2021 at 8:00 AM
30 year mortgage rates could be just what you need to get your dream home!

If you’re considering buying a home, it’s understandable to be uncertain. This is a huge investment and responsibility. And, especially if you’re debating between 20 year and 30 year mortgage rates, it’s only natural to feel unsure. But, luckily, you came to the right place!

At Atlas Crown Mortgage, we have over 25 years of experience that has enabled us to tailor and design our options and rates to our valued clients in Scottsdale and Phoenix, Arizona. We guarantee transparency, honesty, and as an efficient, cost-effective and painless process. And, as a token of immense gratitude, we’re proud to offer discounts to military personnel and first responders.

Here’s everything you need to know about the differences between 20 and 30 year mortgage rates.

20 year mortgage rates

Just like the 30 year mortgage rates, 20 year mortgage rates are fixed. So interest rates don’t change over the course of the loan term. But there are still key distinctions to make.

A shorter loan term

This is essential to take into consideration. With 20 year mortgage rates, you have a shorter loan term. This means you’ll ultimately end up paying less interest. However, it also means higher monthly payments.

Building equity

Also, if you’re concerned with building an equity share, a shorter loan term (like a 20 year mortgage) is far better. It takes longer to build equity with a 30 year mortgage rate.

It’ll force you to be realistic

It’s easy for people to get carried away with the potential homes they envisage themselves luxuriating in, but it’s crucial to be realistic. With a 20 year term, it’ll force you to be more realistic since you’re less likely to qualify for more expensive homes.

With the more expensive and bigger homes you qualify for with a 30 year mortgage, people often fail to recognize all the extra, hidden costs. These include higher utility bills, higher property taxes, and higher maintenance expenses.

30 year mortgage rates

Now, depending on your financial situation, 30 year mortgage rates might be preferable. After all, 30 year mortgage options are the most common rates in the country. Like 20 year interest rates, they don’t change. Here are key distinctions to be aware of.

Longer paying term

This depends on your financial situation, but a longer paying term could be just what you need. Since you’ll have longer to pay your loan, monthly payments will be less, which is more manageable for some. Though that does mean higher payments in the long run on interest rates, this is still a viable and great option.


The longer paying term of 30 year mortgage rates means more flexibility for you. Whenever you’re able to, you can make extra payments. But, if something should happen and limit you, you can always return to the lesser, normal monthly payments.

Dream bigger

You can qualify for a bigger, more expensive home with 30 year mortgage rates. However, it’s important to make sure you don’t overborrow and maintain realistic expectations.

Tax deductible

There are laws in place that enable you to deduct your mortgage interest from your taxes. This means that, with 30 year mortgage rates, you can maximize these tax deductions every year.

Contact us now for a consultation!

If you’re interested in buying a home, contact Atlas Crown Mortgage now for a consultation! Whether you want 20 or 30 year mortgage rates, we’ve got you covered. We want to help you obtain your dream home. But, more importantly, we want to ensure you can sustain that dream.

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Rates fluctuate daily, we'll let you know when it's time to buy, or refinance!