Skip nav to main content.
Pearl Hawaii Credit Union
Android GET - On the App Store
Pearl Hawaii Credit Union
Apple GET - On the App Store

Is a 20 Year Mortgage Right For you?

A 20-year mortgage versus a 30-year mortgage? Which is the best for you? Usually, the answer rests on the tradeoff between a lower interest rate or a lower monthly payment. If you’re like 90% of homeowners, you’re going to choose the 30-year mortgage… but what if you don’t want to spend the next 30 years of your life paying down a mortgage and payments for a 15-year mortgage is way too high?  There is actually something called a 20-year mortgage that allows you to get a little bit of the best of both worlds. Pearl Hawaii’s 20-year mortgage loan option provides benefits over other mortgage loan types.

Why a 20 Year Mortgage?

  • The interest rate is much better than a 30-year loan
  • You pay less interest during the lifetime of the loan
  • Borrow up to $1,149,825.
  • The monthly payments are more affordable than a 15-year mortgage
  • The amortization follows more closely to a 15 year than a 30 year
  • Pay off your house quicker
  • Keep up with your retirement goals. Who wants debt when they actually retire?
  • You will be a homeowner 10 years sooner.
  • Payments are affordable


A 20-year mortgage loan comes with a lower interest rate, which results in a reduced expense for the buyer over the life of the loan. Since the loan is shorter sometimes the payments are higher, but this is dependent on the rate you receive. Also, a 20-year mortgage term may allow the loan to be paid off quicker and with less total money out of pocket.


When should you refinance into a fixed loan from another type of loan?

Refinancing into a fixed-rate loan results in sizable cost savings. For borrowers who have jumbo loans, refinancing is typically the better option because you could see even more savings. Borrowers who have a VA Home Loan or an ARM (adjustable-rate mortgage) may have to worry about large payments or insurance premiums. In this case, refinancing will only make sense if the borrowers are able to get a much lower rate that’s enough to offset any refinancing costs.