Effective today, August 16, 2022, the 10-year fixed mortgage rate is 4.95% and 10/6 ARM is 5.78%. These prices are not the guide prices you may see advertised online and, based on our methodology, they should be more representative of what customers can expect to receive based on their qualifications. You can read more about what makes our pricing different in the Methodology section of this page.
Finding the best 10-year mortgage rates would mean you could save the most money on your mortgage. This is because 10-year mortgage rates tend to be lower than other terms. Plus, with the shorter loan term, getting a 10-year mortgage will save you tens of thousands of dollars in interest over the life of the loan. It’s also a popular choice for existing homeowners who want to refinance but don’t want to reset the clock on a longer-term mortgage, especially those who don’t have much left on their loan.
There is one major caveat: 10-year mortgages come with a higher monthly payment. For those who can afford the payments, this type of mortgage is worth it. To help you make the best decision for your borrowing needs, let’s look at the best rates and other considerations like how to qualify for a 10-year mortgage.
Current 10-year mortgage rates
|Type of loan||To buy||Refinance|
|10 years fixed||4.95%||5.19%|
Today’s rates for all types of mortgages
|Type of loan||To buy||Refinance|
|Fixed 30 years||5.55%||5.99%|
|30-year fixed FHA||5.43%||5.91%|
|VA 30 years fixed||5.60%||6.15%|
|30 year fixed jumbo||4.94%||5.03%|
|20 years fixed||5.23%||5.46%|
|15 years fixed||4.97%||5.25%|
|15 year fixed jumbo||4.94%||5.04%|
|10 years fixed||4.95%||5.19%|
|Jumbo 7/6 ARM||4.62%||4.80%|
|Jumbo 5/6 ARM||4.73%||4.81%|
Frequently Asked Questions
What is a 10 year mortgage?
A 10-year mortgage is a home loan that allows borrowers to fully repay their debt in 10 years. This is the shortest term for a fixed rate mortgage, and the monthly payments include both principal and interest. Rates tend to be lowest compared to 30-year, 20-year, and 15-year mortgages. However, due to the shorter term, the monthly payments will be much higher than longer term loans.
Any of the above should not be confused with a 10 year old adjustable rate mortgage (ARM) ready. An ARM loan has a term of more than 10 years; this is often a 30-year mortgage. The way a 10-year ARM works is that the initial interest rate is fixed for the first 10 years, then it will be adjusted based on current market conditions. A 10-year mortgage has a strict term of 10 years.
Who should consider a 10 year mortgage?
Homeowners who want to be able to pay off their mortgage quickly and can afford the large monthly payment should consider a 10-year mortgage. Also, since lenders may consider these types of borrowers to be higher risk (since you’ll be paying more each month), you’ll most likely need to have a great credit profile to qualify.
A 10-year home loan is also preferable for those who want refinance your mortgage and have been repaying their existing loan for some time. For example, those who are close to 10 years away from being mortgage free may not want to refinance to a longer term loan. In other words, unless you’re looking to refinance for a longer term to reduce payments, keep in mind that you’ll end up paying more interest in the long term if you go for a longer term loan.
Younger first-time homebuyers should carefully consider whether a 10-year mortgage is the best choice. Consider your current income and whether it can support a larger monthly mortgage payment in addition to other financial obligations and savings goals. A longer term may be more beneficial so you can leave room in your budget for expenses such as student loans, establishing an emergency fund, or other costs associated with homeownership. like repairs.
What are the benefits of a 10 year mortgage?
The main advantage of taking out a 10-year fixed rate mortgage is that homeowners can pay off their loan much faster than other loan terms. Since rates can be lower on a 20- or 30-year term and homeowners make fewer payments, borrowers will save the most money on interest with a 10-year term. In addition, owners will be able to build capital much faster.
For example, a $300,000 30-year mortgage with a 20% down payment and an interest rate of 3.5% will end up paying $147,974.61 in interest. If you take out a 10-year loan with the same interest rate and loan amount, you’ll end up paying $44,791.30 in interest, a difference of $103,183.31. However, the monthly payment for the 30-year term is $1,077.71, compared to $2,373.26 for the 10-year loan. These financial considerations should be carefully considered before making such an important decision.
What is a good 10-year mortgage rate?
Mortgage rates vary between different lenders as well as from day to day. Even if you look at the averages from places like Fannie Mae or Freddie Mac, getting a good rate will depend on a few factors, including your credit profile, total loan value, and which lender you ultimately go with. This is why it is important to shop around for different lenders to receive personalized quotes in order to find the best one.
Since borrowers have to make high monthly payments, lenders are more likely to demand excellent credit. This is in addition to factors such as having a large amount of assets, stable income, and a low debt-to-income ratio (DTI).
Your DTI, calculated by dividing your total debt payments by your gross income, is a percentage used by lenders to determine whether you’ll be able to easily pay your monthly mortgage payment in addition to your other debt payments. In other words, lenders want to make sure that you are not at risk of overstretching yourself financially.
When you apply for a 10-year loan, lenders will provide you with a loan estimate. This document details the initial quote, including the interest rate and additional charges. This way you can see what your total costs are throughout the loan.
Do different types of mortgages have different rates?
Fixed and adjustable rate loans have different rates. ARMs have interest rates that are generally lower for the initial fixed-rate period, but generally increase once that period is over (rates will fluctuate based on market conditions). Fixed rate mortgages may have higher initial interest rates than ARMs, but remain the same for the life of the loan.
There are also different loan terms for fixed rates and ARMs, such as a 10-year, 15-year, 20-year, or 30-year loan. The longer the term, the higher the interest rates tend to be.
Are the interest rate and APR the same?
The annual percentage rate, or APR, is not the same as the interest rate. The interest rate is the cost that lenders charge homeowners for borrowed money. You will see this amount expressed as a percentage. This does not include fees for other fees associated with the mortgage.
The APR is also expressed as a percentage, but it includes both the interest rate and the additional fees that lenders impose on the mortgage. These fees may include application fees, brokerage fees, discount points, origination fees and lender credits.
Where can I find 10-year mortgage rates?
You can find 10-year mortgages by looking at banks’ websites, online lenders, or through third-party comparison websites like Investopedia. Keep in mind that these rates are only estimates and do not reflect the personalized quotes you will receive after submitting an application form with your personal information.
How can you qualify for a 10 year mortgage?
Qualifying for a 10-year mortgage will depend on the type of loan you want, whether it’s a conventional mortgage or a government-backed loan. For example, some government-backed mortgages may have additional requirements, such as USDA loans available to rural homebuyers with limited income.
Otherwise, the ability to qualify for a mortgage includes having a stable source of income, a debt-to-income ratio within lenders’ guidelines, and a fair or good credit rating. In most cases, borrowers will be required to pay a down payment, but the exact amount depends on the lender and the type of mortgage loan. An exception is a loan from the Veterans Association (VA), which has no deposit requirement for qualified borrowers.
To show that you have a stable source of income, borrowers will need to provide documents such as pay stubs, bank statements, and W2s. Lenders may have stricter requirements from the self-employed, such as two years of tax returns and additional documentation proving your income for the past two years.
If you’re unsure if you’ll qualify for a 10-year mortgage, check with the lender or a reputable mortgage broker to find out what requirements you’ll need to meet. This way you can work towards them to increase your chances of being approved for a mortgage.
How we choose the best 10-year mortgage rates
In order to assess the best 10-year mortgage rates, we first needed to create a credit profile. This profile included a credit score ranging from 700 to 760 with a home loan to value (LTV) ratio of 80%. With this profile, we’ve averaged the lowest rates offered by over 200 of the nation’s top lenders. As such, these rates are representative of what real consumers will see when shopping for a mortgage.
Remember that mortgage rates can change daily and this data is provided for informational purposes only. A person’s personal credit and income profile will be the determining factors of the loan rates and terms they can obtain. Loan rates do not include amounts for taxes or insurance premiums and individual lender terms will apply.
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