20 Year Morgage: This is a type of Fixed Rate Loan wherein the interest rate and payment remain during an 'amortization term' of 20 years (240 Months). This basically means that you will make identical monthly payments on your loan and at the end of 20 years the entire loan will be paid. At that point your home will be owned 'Free & Clear'.
The majority of lenders & banks offer the 20 Year Morgage at an interest rate that is identical to that of the 30 Year Term. So the main advantage in getting a 20 yr Term is not that you'll get a lower interest rate but rather that you will save on interest payments by cutting out 10 years of paying interest (when compared to the 30 Year Term).
For example, on a $300,000 loan at 6.25% on a 30 yr Term you would pay $664,975 over the term of the loan. However, with a 20 yr Term you would only pay $526,268 over the term of the loan. In this example selecting a 20 yr Morgage would save you over $138,706.
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20 Morgage Rate - 20 yr Interest Rates, Calculator, & Loan Application...
