A 10-year mortgage is a type of loan used to finance a home with a fixed rate of interest for a term of 10 years. Because the repayment term is short, lenders are usually willing to charge a lower rate than those for a longer-term mortgage.
However, even though 10-year mortgage rates are lower, the monthly payment will be higher, primarily due to the shorter term of the loan. But if you can afford the larger payment, a 10-year mortgage can be a great way to save money on interest costs.
We analyzed rate data from 200 top lenders to find today's best mortgage rates. Here are the best 10-year rates:
The Best 10-Year Mortgage Rates Today
|The Best 10-Year Mortgage Rates Today|
|Type of Loan||Purchase||Refinance|
|Compare Today's Best Fixed-Rate Conventional Mortgage Rates|
|Jumbo 30-Year Fixed||4.57%||4.65%|
|Jumbo 15-Year Fixed||4.57%||4.65%|
A 10-year mortgage can be a good option for people who want to refinance an existing mortgage they’ve had for a long time (usually 10 years or more). People in this situation will often be able to get a much better rate. Plus, although their monthly principal and interest (P&I) payments will likely increase, the loan will be paid off years sooner than expected.
When choosing your mortgage loan, make sure you look beyond the rate. Research all variables related to the loan including any closing costs, prepayment penalties, credit score requirement, and the acceptable debt-to-income ratio (DTI) for the loan. Also be sure to consider other types of fixed-rate mortgages: 30-year, 20-year, or 15-year.
The best way to compare mortgage types and terms based on your situation is to run the numbers using a mortgage calculator. You can see how the length of term affects interest rate, and a lot more besides.
Frequently Asked Questions (FAQs)
What is a 10-year Mortgage?
A 10-year mortgage is a fixed-rate mortgage used to finance a home with a repayment term of 10 years. The monthly P&I payment won’t change, and this type of mortgage is paid off much quicker and usually carries a lower interest rate than a longer-term mortgage. Even so, qualifying is more difficult because a 10-year fixed-rate mortgage comes with a higher payment than a longer-term mortgage.
In addition to the fixed-rate 10-year mortgage, you may also see rates for 10-year adjustable-rate mortgages (ARM). Just be aware that these are usually 30-year mortgages, with a fixed interest rate for the first 10 years. After that, rates will fluctuate. There are various types of 10-year ARMs, but one of the most common types is a 10/1 ARM. With this type of ARM, you’ll pay a fixed rate for the first 10 years and then a variable rate that adjusts every year for the remaining term (e.g., 20 years, if the repayment term is 30 years).
It’s easier to qualify for a 10-year ARM with a 30-year repayment term than it is to qualify for a 10-year fixed-rate mortgage. This is because the payment’s principal portion is based on a 30-year amortization rather than a 10-year amortization. As such, the payment with a 10-year ARM is lower than the payment with a 10-year fixed-rate mortgage.
The biggest risk of a 10-year ARM is that your rate is only fixed for 10 years and adjusts for the remaining term. Once you’re past the fixed-rate period, your payment will increase or decrease depending on what’s happening with the interest rate environment. This payment volatility can be difficult to manage, so make sure to carefully consider whether an ARM is right for you before you choose one.
Who should consider a 10-year mortgage?
You should consider a 10-year, fixed-rate mortgage if you want to benefit from the lower rates that usually come with shorter-term mortgages, want to pay off your loan much quicker than with longer-term mortgages, and can afford a bigger monthly payment. When compared to a 30-year fixed-rate mortgage, you’ll pay off your mortgage in a third of the time if you opt for a 10-year mortgage. However, this means your payment will also be bigger, even with a lower rate. For example, a 10-year fixed-rate mortgage of $225,000 with a 2.62% APR will have a monthly P&I payment of $2,133.37. In contrast, a 30-year fixed-rate mortgage of the same amount has a 3.17% APR and a $969.36 monthly P&I payment.
People who want to refinance an existing mortgage they’ve been paying on for a long time (10 years or more) should also consider a 10-year mortgage. This is because you’ll likely get a better interest rate. Plus, although the payment may still be larger than on your current mortgage, it may be doable, particularly if your income has grown.
To see how this works, let’s say you’ve been paying on your existing 30-year $300,000 mortgage for 10 years. You have a fixed rate of 6% with a monthly P&I payment of $1,798.65. The balance is now $251,057 and you’re able to get a 2.62% 10-year fixed-rate loan. Although your monthly P&I payment will increase to $2,380.44, you’ll pay off your loan 10 years sooner than originally expected and you’ll save money on interest.
What are the benefits of a 10-year mortgage?
When deciding if a 10-year mortgage is right for you, it’s important to weigh the benefits against the drawbacks. You’ll repay a 10-year fixed-rate mortgage much quicker than a mortgage with a longer fixed-rate term, and you’ll pay much less interest. However, qualifying isn’t as easy (since the payment is so much higher), and you may have to shop around a little more to find this type of mortgage, as fewer lenders offer it than the more common 15-year and 30-year mortgages.
What is a good 10-year mortgage rate?
The actual rate you can get on 10-year, fixed rate mortgage will depend on such factors as the lender you choose, the fees you’re charged, your credit score, how much of a down payment you’re able to make, and the loan program you choose.
To find a good 10-year mortgage rate, you should shop carefully.
- Consider multiple lenders: Make sure to shop around for the best possible deal. Each lender will charge a different rate, so it’s good to consider several lenders before making a final decision.
- Fully understand the fees: After you’ve gotten a mortgage offer, pay close attention to the lender’s fees so you’re not surprised and to make sure you understand the costs. Also, don’t base your decision solely on the interest rate. You should evaluate the APR, too, as it includes additional fees you’ll pay to get the loan, such as discount points.
- Consider your credit score: One of the biggest factors affecting the mortgage rate is your credit score. To get a good 10-year mortgage rate, you should make sure your credit score is in the best possible shape before you apply.
- Make a larger down payment: Although it’s possible to get a mortgage with no down payment, you’ll typically get a better mortgage rate if you make a bigger down payment. Plus, your loan will cost less with a down payment of at least 20% as you won’t have to purchase private mortgage insurance.
- Carefully evaluate the loan program options: When you’re shopping for a mortgage, there are many available loan programs. To get the best rate, it’s important to choose the program that’s best for you. For example, although it’s easier to qualify for an FHA loan, you’ll probably get a better rate if you go with a conventional loan.
If you do your homework and carefully evaluate the available options, you’ll be well-equipped to find a good 10-year mortgage rate.
Do different types of 10-year mortgages have different rates?
As with all mortgages, different types of 10-year mortgages have different rates. You’ll pay the lowest rate with a 10-year fixed-rate purchase mortgage, and slightly higher with a 10-year refinance mortgage. If you opt for a 10/1 purchase ARM, the rate will also be slightly higher than what you can get with a 10-year fixed-rate purchase mortgage because there’s a higher level of risk associated with this type of loan.
You might also find a 10-year mortgage with a balloon payment. However, these types of loans have a higher risk level, and many lenders don’t offer them. Since there is a higher level of risk, you’ll need to be very well-qualified to get this type of loan. Plus, it’s only a good idea to get this type of loan if you know with certainty that you’ll have the money when it comes time to pay it off.
Where can you find 10-year mortgage rates?
While it’s easy to find mortgage rates for 15-year or 30-year mortgages, 10-year mortgage rates are more difficult to find. Lenders who offer 10-year mortgages will often publish these rates on their websites, so you’ll want to look there to start. We update the rates on this page daily, so you'll have a benchmark when searching for rates.
How can you qualify for a 10-year mortgage?
What it takes to qualify for a 10-year mortgage is similar to the qualifications required for other types of mortgages (e.g., conventional or FHA loans), except you’ll usually need more income. This is particularly true if you’re considering a 10-year fixed-rate mortgage. Since you’ll pay off this type of mortgage three times faster than the standard 30-year mortgage, your payment will also be higher. As a result, you’ll need more income to meet the DTI requirements.
Check to make sure that your total debt-to-income ratio doesn’t exceed 36% to 43% and that your front-end DTI ratio (housing costs that include your principal, interest, taxes, and insurance) doesn’t exceed 28% to 30%.
However, just because you can qualify for a mortgage doesn’t mean you can afford it. Make sure you’re comfortable with the payment before agreeing to the loan.
How are 10-year mortgages different from 30-year mortgages?
The difference between a 10-year mortgage and a 30-year mortgage depends on how the rate is set. This is because you may be able to get a 10-year fixed-rate mortgage (the interest rate never changes, and the loan is repaid in 10 years) or a 10/1 ARM (the interest rate is fixed for 10 years and then adjusts every year for the remaining term, usually 20 years). With a 30-year fixed-rate mortgage, the interest rate is fixed for the entire 30-year repayment term.
Another way a 10-year mortgage differs from a 30-year mortgage is that the loan is repaid 20 years quicker, and the rate on a 10-year fixed-rate mortgage is typically lower. Your monthly payment will be larger with a 10-year fixed-rate mortgage than it will with a 30-year mortgage because the loan is amortized 20 years quicker.
The key differences between the two most common types of 10-year mortgages versus a 30-year mortgage are shown below:
|30-Year Fixed-Rate Mortgage||10-Year Fixed-Rate Mortgage||10/1 Adjustable Rate Mortgage|
|Repayment Term||30 years||10 years||Usually 30 years|
|Interest Rate Type||Fixed for 30 years||Fixed for 10 years||Fixed for 10 years and adjusts annually for the remaining term|
|Monthly P&I Payment||Never changes and is the lowest of the three||Never changes and is the highest of the three||Changes annually after the first 10 years|
|Who It’s Best For||People wanting a low P&I payment that won’t ever change||People wanting to repay their mortgage fast who can afford a big payment||People wanting a lower rate not worried about future P&I payment changes|
How We Found the Best 10-Year Mortgage Rates
To find the best 10-year mortgage rates we first created a profile borrower. Our borrower has a credit score of 700 to 760 and the property has a loan-to-value ratio (LTV) of 80% (which avoids PMI). Next, we averaged the lowest rates offered by more than 200 of the nation’s top lenders. These rates are representative of what real consumers will see when shopping for a mortgage.
Note that mortgage rates change daily and this data is intended to be for informational purposes only. A person’s personal credit and income profile will be the deciding factors in what loan rates and terms they are able to get. Loan rates do not include amounts for taxes or insurance premiums and individual lender terms will apply.