10 Year Mortgage Rates Guide

A 10-year mortgage can be a great option for those who want to own a home quickly, as it's typically paid off in just a decade.

With a 10-year mortgage, you can expect to pay significantly more per month than with a 30-year mortgage, with payments often ranging from $1,500 to $3,000 or more.

The shorter loan term means you'll pay less in interest over the life of the loan, which can be a major advantage for those who want to save money.

However, the higher monthly payments can be a challenge for some homeowners, so it's essential to carefully consider your budget before choosing a 10-year mortgage.

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As of January 6, 2025, current 10-year mortgage rates are 6.23 percent. This rate is subject to change and can fluctuate daily.

The rate you'll get will depend on the lender and your financial situation, but generally, the shorter the loan term, the lower the interest rate. With 15- and 30-year mortgages, you'll usually be charged a higher interest rate than you'd pay with a 10-year.

Here's a comparison of different loan terms:

10-year mortgage rates tend to be considerably lower than rates for mortgages with longer terms, although usually they will move up and down in tandem with 30-year rates.

10-year mortgage rates can be a bit confusing, but let's break it down. 10-year fixed-rate mortgages usually offer rates that are lower than 30-year mortgages.

The interest rate on a 10-year mortgage is typically lower than on a 30-year home loan, which means you'll pay less interest over time. For example, on a 30-year mortgage for a home valued at $300,000 with a 20% down payment and an interest rate of 3.75%, the monthly payments would be about $1,111 (not including taxes and insurance).

Here are some key differences between 10-year and 30-year mortgage rates:

Keep in mind that the 10-year mortgage has a higher monthly payment, which can affect your house affordability when it comes to qualifying for a mortgage.

Conventional Fixed Rate mortgages offer predictability and peace of mind with the same principal and interest payments for the life of the loan because the interest rate never changes.

You can finance loan amounts within the conforming limits set by Fannie Mae and Freddie Mac. For example, a $250,000 loan with a 10-year fixed rate of 6.250% has a monthly payment of $2807.01.

A 15-year fixed rate mortgage also offers fixed payments, with a rate of 6.250% and a monthly payment of $2143.56. The longer loan term means lower monthly payments, but you'll pay more in interest over the life of the loan.

The number of payments and payment amounts vary by loan term. For a 10-year fixed rate mortgage, you'll make 119 payments, with the last payment being $2,805.75. In contrast, a 30-year fixed rate mortgage has 359 payments, with the last payment being $1,658.67.

Here's a comparison of the estimated monthly payments for different conventional fixed rate mortgages:

Keep in mind that actual closing costs may be higher or lower depending on where the property is located.

A 10-year fixed-rate mortgage has an interest rate and monthly payment that will stay the same for a 10-year term.

The interest rate on a 5-year ARM is fixed for an initial 5 years, and then becomes variable for the remainder of the loan term.

A 5-year ARM generally has a lower initial rate, but a 10-year mortgage has a shorter loan term.

A 10-year mortgage will save you more on interest over the life of the loan, even if a 5-year ARM saves you more on interest during the initial fixed period.

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As of January 6, 2025, the current 10-year mortgage interest rates are 6.23.

These rates have been influenced by the prevailing interest rates, which rose steadily from 2022 to peak in the fall of 2023.

Rates have fluctuated since then, staying between 6.1 percent and 6.7 percent.

You can find the most competitive mortgage interest rates in a comprehensive national survey of mortgage lenders, which is updated daily.

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Bankrate's mortgage rates are based on two surveys: one daily and one weekly, which helps provide the most current interest rates and APRs.

The overnight averages and Bankrate Monitor averages are both produced by Bankrate, with the former based on no existing relationship between borrower and lender, or automatic loan payments.

To get the best rates, consider looking at the rates from the 10 largest banks and thrifts in 10 large U.S. markets, based on no existing relationship or automatic payments.

You can trust Bankrate's mortgage rates because they are produced from two surveys and are updated daily.

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A 10-year mortgage can be a great option for some people, but it's essential to weigh the pros and cons before making a decision.

One of the biggest advantages of a 10-year mortgage is that you can own your home outright much sooner than you would with a longer loan term. This can be a huge plus for those who value having a paid-off home.

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Lower interest rates are another benefit of 10-year mortgages. Typically, interest rates for these loans trend lower than for longer loan terms, which can save you significantly on interest charges over the life of the loan.

You'll also build equity in your home much faster with a 10-year mortgage, which can be a great feeling. Since you're paying off the loan relatively quickly, you're also building home equity at a faster pace.

However, there are some downsides to consider. Higher monthly payments are a significant con of 10-year mortgages, which can stretch your budget to the max. This can quickly become unaffordable if your finances change.

You may also qualify for a lower mortgage amount with a 10-year mortgage, which can limit your ability to buy a more expensive home. Additionally, the higher monthly payments may deplete funds available for other financial goals, such as retirement savings.

Here's a quick summary of the pros and cons: