A 20-year mortgage is a home loan with a repayment period of 20 years. It falls between shorter- term loans like 15-year mortgages and longer-term loans like 30-year mortgages.

Borrowers make monthly payments for 20 years, covering both principal and interest. The interest rate can be fixed or adjustable, depending on the loan terms.

Faster equity build-up compared to longer-term loans, lower total interest paid over the life of the loan, and typically lower interest rates compared to longer-term mortgages.

Monthly payments on a 20-year mortgage are higher than those on a 30-year mortgage, but they are generally lower than those on a 15-year mortgage. This strikes a balance between affordability and quicker equity accumulation.

Most mortgages allow for early repayment without penalties. However, it's important to check your loan agreement to understand any specific terms related to prepayment.

Both fixed-rate and adjustable-rate mortgages can have 20-year terms. Government-backed loans like FHA and VA may also offer 20-year options.

- The loan amount depends on factors like income, credit score, and debt-to-income ratio. Lenders evaluate these factors to determine the maximum loan amount you can qualify for.

The main drawback is higher monthly payments compared to longer-term loans. It requires a more significant monthly financial commitment, so borrowers should ensure it fits comfortably within their budget.

Refinancing can be an option to secure a lower interest rate or change loan terms. However, it's essential to consider closing costs and the potential savings over the remaining loan term.

A 20-year mortgage allows for faster debt repayment, freeing up financial resources for other goals like retirement savings or educational expenses.