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A 20 year mortgage loan is often considered a unique mortgage product.

Why is it a unique mortgage product? because it is harder to get investors to buy (purchase and service a closed loan) a 20 yr termed mortgage products than it is to get investors to buy 30 and 15 year termed products. Therefor, some mortgage lenders do not even offer a termed loan of twenty years since it is difficult to sell on the secondary market.

This does not mean that it is extremely difficult to find a 20 year loan product

Most standard and large mortgage lenders offer the 20 year termed conventional home loans. It is usually more difficult to find a bad credit loan, arm mortgages and stated income/no doc loans that are twenty year termed.

TIPS - Most borrowers feel that a shorter termed loan offers a lower mortgage rate and when it comes to a 20 year fixed rate mortgage that is true. A low mortgage rate compared to the current thirty year mortgage rate. But it is usually a quarter to three eight a point higher than the fifteen year loan. This means that the payment difference between a twenty and a fifteen year mortgage are very small.

20 year mortgage rates are higher than the fifteen year loans and only slightly lower than a 30 year mortgages.

Since so few 20 year termed loans are originated, It takes a long time to package up bundles of 20 year amortized loans to sell so for this waiting period the lender has to charge a premium for offering this unique and hard to sell product. The premium charged comes in the interest rate compared to the 15 year mortgage rate.

Most of the times the 20 year term is not a wise product to get.

It offers no real substantial savings and is usually only recommended by financial planners/accountants that have created a specific financial plan for a 20 year plan for the borrower.

But if you want it, It is offered in the fixed rate and most lenders will only give it in the conventional loan type.

Visit Our Mortgage Home Page For a 20 year Mortgage Quote!

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