Why choose 20 years
Many people refinance to lower their rate without adding years to their loan. If you are 10 years into a 30-year mortgage, a new 30-year loan would push your payoff date back a decade. A 20-year refinance keeps it about where it is.
Others pick 20 years to build equity faster without the full jump to a 15-year payment.
20 vs. 30 years
Hypothetical example. APR may differ; example only. Rates change daily. On a $300,000 loan, a 30-year term at 6.75% has a principal and interest payment of about $1,946 a month. A 20-year term at 6.5% is about $2,237 a month. The 20-year payment is about $291 higher, but you would pay roughly $163,673 less in total interest over the life of the loan.
Example details: $300,000 30-year fixed at 6.750% (6.778% APR): 360 monthly payments of $1,945.79; $300,000 20-year fixed at 6.500% (6.534% APR): 240 monthly payments of $2,236.72. Principal and interest only; taxes and insurance not included, so the actual payment will be higher. Unless noted, APR assumes ZERO Closing Costs, no discount points and 15 days of prepaid interest. Hypothetical example prepared November 4, 2026, not a current CapCenter rate offer; subject to credit approval.
Compare 15, 20 and 30 years
Look at more than the payment. Line up the monthly payment and the total interest for each term side by side, using the same loan amount. Your loan consultant can run these numbers for you.
- 15 years: the highest payment and the least total interest
- 20 years: a middle payment and much less interest than a 30-year term
- 30 years: the lowest payment and the most total interest
Who a 20-year term fits
- Homeowners several years into a 30-year loan who don't want to restart the clock
- People who want to own their home outright before a set goal, like retirement
- Borrowers who find a 15-year payment too tight
- Anyone who wants built-in discipline instead of relying on extra payments
The trade-off
A higher required payment gives you less flexibility if money gets tight. Before you commit, make sure the payment fits your budget with room for savings, repairs and other goals.
A 30-year loan with extra principal payments can reach a similar result, but the extra payments are up to you and the rate is usually a little higher.
Refinancing with CapCenter
CapCenter offers 30, 25, 20, 15 and 10-year fixed terms. Refinances come with ZERO Closing Costs (restrictions apply), so you don't need to recoup closing costs before the new term starts saving you money. You need a credit score of at least 620 for a CapCenter loan.
