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Best 10-Year Mortgage Rates

April 2024

Mortgages with 10-year terms are relatively rare but there are lenders who offer them.
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Below is SuperMoney's list of top 10-year mortgage lenders. Check rates with multiple mortgage companies to see which one offers the best terms.
Compare All Home Mortgage Loans

How do 10-year mortgages work?

Most homeowners opt for 30-year mortgages because they have lower monthly payments. However, you can save a lot of money in mortgage interest if you choose a shorter term. Mortgages with longer terms typically have higher interest rates and require you to pay interest for longer periods. Consider going with a 10-year mortgage if you can afford the higher monthly payments.
Mortgages with a 10-year term are set up so they are paid off in 10 years if you make every payment as scheduled. A mortgage is a special type of loan that people can use to purchase real estate. The real estate you purchase with the loan helps secure the debt. If you stop making your monthly payments, the lender can foreclose on the loan and take the real estate you purchased to recover its losses.
In general, the longer the term of a mortgage, the higher the interest rates and the lower the monthly payments will be. Therefore, 10-year mortgages usually have the lower interest rates and the higher monthly payments than 30-year and 20-year mortgages.

What is the difference between a fixed-rate mortgage and an adjustable-rate mortgage?

Many banks give customers the choice of loan type, offering the option of a fixed-rate mortgage or an adjustable-rate mortgage (ARM). Both have pros and cons.
Fixed-rate mortgages have an interest rate that is set in stone when you sign the paperwork and get the loan. Whether you choose a 10-year, a 15-year, or a 30-year fixed-rate mortgage, once the rate is set, the interest rate will not change over the life of the loan. Keep in mind that a loan with a shorter term will have a lower interest rate.
This can be good for people who like certainty because you know precisely how much you'll pay each and how much the loan will cost overall. However, the interest rate for fixed-rate mortgages is usually higher than the starting rate for an ARM.
With an adjustable-rate mortgage, the interest rate can change over time. You may see ARMs advertised as 5/1 or 7/1. The first number is the initial interest rate lock period. During that period, the interest rate will not change. The second number indicates how frequently the rate can change after the lock period.
For example, with a 5/1 ARM, the interest rate is fixed for the first five years of the loan. Then, the rate can change once per year.
ARMs tend to have lower starting interest rates than fixed-rate loans. That means lower monthly payments and a lower overall cost for the loan. However, once the interest rate lock period ends, the interest rate can rise or fall.
If it rises, your monthly payments will increase. If the rate rises too much, you may have trouble paying the bills. This uncertainty is a major drawback of adjustable-rate mortgages.
If you don't plan to stay in a home for the long-term or plan to pay off your mortgage very quickly, ARMs can help you save money. They can be a good idea if you're choosing a short loan like a 10-year mortgage. Those opting for longer terms will likely prefer a fixed-rate mortgage, such as a 30-year fixed-rate mortgage.

How much can you save by choosing a 10-year mortgage term?

Ten-year mortgage rates can save you big money on interest expenses and help you own your home debt-free sooner than you thought possible. The benefits of choosing a 10-year mortgage include lower rates (up to a full percentage point lower in some cases) and paying your mortgage in a third of the time.
The savings you can get from a 10-year mortgage when compared to a 30-year mortgage will vary depending on the size of the loan and the interest rates you pay. Let's use a $300K loan with a 3% APR and 30-year term as a benchmark. A loan with the same interest and a 10-year term will save you $107,713 over the life of the mortgage. The table below provides a variety of scenarios to help you see the potential savings of different terms.
TermTotal Cost $300K (3% interest rate)Monthly Payments
10 years$347,619$2,897
15 years$372,914$2,072
20 years$399,310$1,664
25 years$426,790$1,423
30 years$455,332$1,265
40 years$515,498$1,074
Mortgages with a 10-year term will typically have lower interest rates and -- obviously -- have a lower overall cost than mortgages with longer terms, such as 15-year, 20-year, and 30-year mortgages.
Mortgages charge interest, and the rates vary with loan terms, so the difference isn't as cut and dry, but the basic idea is the same. The longer you have to repay your debt, the less you have to pay each month. This is one of the things that makes 30-year mortgages highly popular. They let people borrow large amounts and purchase expensive homes while minimizing the monthly cost.

Pros and Cons of a 10-Year Mortgage

Here is a list of the benefits and the drawbacks to consider when shopping for a 10-year mortgage.
  • 10-year mortgage rates usually have lower interest rates
  • Lower total cost for the loan
  • A 10-year loan can help you build home equity faster
  • More equity makes it easier to refinance in the future
  • Get out of debt faster
  • A 10-year-loan comes with a significantly higher monthly bill.
  • Higher payments can have an opportunity cost: slowing your investing or progress toward other goals.
  • Fewer homes will be affordable due to the higher monthly cost of 10-year-mortgage rates.
  • A 30-year fixed mortgage provides more budget flexibility if you lose your income.

How should you choose a mortgage term?

Choosing the right mortgage term for your situation can be difficult. You have to consider multiple factors.
The number one thing to think about is whether you can fit the payment in your monthly budget. If a mortgage costs more than you can afford to pay each month, you shouldn't get the loan. Mortgages with shorter terms have higher payments, so choosing a longer loan term like a 15-year, 20-year, or 30-year mortgage can make the home loan more affordable every month.
On the other hand, you need to think about the overall cost of the loan. A loan with a shorter term will have lower rates and leave less time for interest to accrue. Current 10-year mortgage rates are also much lower than the rates for longer mortgages.
Choosing a 10-year or 15-year mortgage means higher payments but can save you a lot of money over the long run. More of your payments will go toward the principal, meaning you can build home equity more quickly and make faster progress toward paying off your mortgage.
Complicating things further is the concept of opportunity cost. Money has many uses, and you can invest your money to help it grow. If mortgage rates are low, it may make more sense to choose a long-term, fixed-rate loan.
Use the money you would have spent each month repaying a 10-year mortgage to invest in the market. Over the long run, your investments may earn a greater return than you would have saved in interest charges.
If you can afford it, and your primary goal is to get out of debt quickly, consider a 10-year loan. If you want a lower monthly cost, aren't worried about paying off your mortgage as quickly as possible, or think that you can get more for your money by investing your extra funds, choose a longer-term loan, such as a 30-year fixed-rate loan. If you want an in-between, you can choose a 15-year or 20-year-fixed-rate loan.

Frequently asked questions about 10-year mortgage rates

What are today's 10-year mortgage rates?

Mortgage rates change daily. Rates also vary depending on the borrower, mortgage term, and type of rate. For example, a 10-year fixed mortgage will probably have a lower interest rate than a 15-year fixed rate. Compare current mortgage rates by choosing one of the lenders above.

How can you calculate the total cost and monthly payment for a mortgage?

To compare different mortgages, whether they be loans from different lenders or loans with different terms, it's important to calculate the monthly cost of a loan and the overall cost of the loan.
To calculate the monthly cost of a mortgage, you need to know the loan amount, the rate, and the term of the loan. The formula is: P= r(PV)/(1-(1+r)^-n). Where P is the payment, PV is the present value, r is the rate per period, and n is the number of periods.
This formula is designed for a fixed-rate mortgage. If you choose an ARM, you will have to recalculate the payment with each change in the loan's rate.
To find the total cost of a mortgage, multiply the monthly payment by the number of months it will take to repay the loan.
For example, if you have a 15-year fixed-rate mortgage and the payment is $1,000, the total cost for the loan will be $1,000 * 180 = $180,000.
Remember, today's mortgage rates and refinance rates for shorter-term loans like 10-year mortgages are lower than those for longer-term loans. However, the shorter term will result in a higher loan payment.

Is a 10-year or 15-year loan term better?

It depends on your priorities. If you are looking to save money on total interest and pay your mortgage faster, then a 10-year term is better. However, the monthly payments will be higher.
Mortgages with a 10-year term are not as common as 30-year or 15-year loan term, but they usually have a lower mortgage rate. A 10-year mortgage will typically have an interest rate that is an eighth of a point (0.125) better than a comparable 15-year fixed mortgage.
Your mortgage's total cost will also depend on the factors such as whether you are paying for private mortgage insurance.

What is a 10 year ARM?

A 10-year ARM is a home loan with an adjustable-rate. Usually, ARMs have a 30- or 15-year term. In such a case a 10/1 ARM would have a fixed rate for the first 10 years and then convert to a variable rate for the remaining life of the term.

Is a 10 year ARM a good idea?

It depends on your circumstances and plans for the future. For example, if you expect to stay in your home for 10 years or less and interest rates are high, a 10/1 adjustable-rate mortgage, or ARM, may be a better idea than a regular 30-year-fixed mortgage.

Alternatives to 10-year mortgage rates

Although the idea of paying off your mortgage in a decade is certainly appealing, you may find the higher monthly payments may make it impossible for you to qualify for the mortgage you need, particularly if you are a first-time homebuyer. Acosigner can help you qualify if your income and credit scores are not great.
Even if you can qualify for a fixed-rate mortgage with a 10-year term, you may want to give your budget some breathing room in case you lose your job or face an unexpected expense.
The good news is there are plenty of alternatives to a 10-year mortgage, such as a 15- or 30-year loan. Homebuyers can always choose the flexibility of a home loan with longer terms and make additional payments every month to save money on mortgage interest.
When comparing mortgage lenders and the rates available, choose mortgage lenders that don't charge you a penalty for prepaying your mortgage.

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