Today’s 10-year fixed mortgage rates

National average mortgage interest rates

Rate data is based on a borrower with good credit, a qualifying loan amount (at least $200,000 but less than the national qualifying loan amount) and a loan-to-value ratio of less than 80% (for purchase loans, this equates to a 20% down payment and more). © Zillow, Inc., 2006-2016. Use is subject to conditions of use

US News Expert Insights

“After a dramatic decline in the past few weeks, mortgage interest rates have stabilized and remain well below the 7% mark. But while financing costs have fallen from their highs, home prices continue to rise due to limited inventory for sale. U.S. Home According to the Federal Bureau of housing financing prices rose by 6.3% year-on-year in October. Home Price Index.

“However, home price appreciation varies by location. Northeastern states saw the highest year-over-year increases, led by the Mid-Atlantic region (9.9%) and New England (9.7%). Home prices rose in all census tracts, but rose the slowest in the West, including the Mountain (2.6%) and Pacific (2.8%) regions. Buyers continue to flock from high-cost-of-living areas to traditionally more affordable markets, driving up prices wherever they go.”

Erika GiovanettiUS loan specialist

Average mortgage rates, daily

Product
Interest rate
APR

30 years solid

6,527%

6.6%

15 years fixed

5,554%

5,678%

10 years fixed

5.5%

5,606%

5 years ARM

7.113%

7,916%

3 years ARM

6.125%

7,204%

Jumbo

6,402%

6,467%

VA

5,562%

5.935%

FHA

5.66%

6,422%

Updated: 12/26/2023

Rate data is based on a borrower with good credit, a qualifying loan amount (at least $200,000 but less than the national qualifying loan amount) and a loan-to-value ratio of less than 80% (for purchase loans, this equates to a 20% down payment and more). © Zillow, Inc., 2006-2016. Use is subject to conditions of use

For someone who wants to make aggressive mortgage payments and has a low interest rate, a short-term loan may be worth considering. Although the most common option is a 15-year term, 10-year fixed-rate mortgages are also available.

When deciding whether a 10-year mortgage is right for you, you’ll want to look carefully at the interest savings, compare the repayment schedule to other types of loans, and really carefully consider what you can afford to pay back each month. Read more about how 10-year mortgages work and whether they make sense for you.

“A 10-year mortgage works like any other amortizing mortgage,” says Dan Green, CEO of Homebuyer.com, a mortgage company for first-time home buyers. “A 10-year mortgage tends to come with lower mortgage rates than comparable 15- and 30-year mortgages, but because the payback period is compressed into a shorter time frame, monthly payments are significantly higher.”

That’s why while a 10-year mortgage may seem like a great option on paper, the reality can be different for many borrowers.

Who might consider a 10-year mortgage

“A borrower who is cautious about debt utilization, has no other debt at all, and (wants) to reduce their interest costs by accelerating principal payments may find a 10-year loan attractive,” says Matt Ricci, home loan specialist with national lender Churchill Mortgage .

But if the high monthly payment doesn’t leave much room in your budget, it’s safer for most borrowers to choose a longer-term loan and voluntarily pay higher payments to speed up repayment and save on interest.

AND mortgage calculator can help show how a $350,000 mortgage would play out over 10, 15, and 30 years:

10 years (6.25% rate) 15 years (6.5% rate) 30 years (7% rate)
Monthly payment $3,930 $3,049 $2,329
Total interest paid $121,576 $198,798 $488,281
Total cost of the loan $471,576 $548,798 $838,281

In this example, a 30-year loan would cost about 78% more than a 10-year loan in total, while a 15-year loan would be about 16% more expensive. However, you will also notice that the monthly payment is significantly higher because you are reducing the number of years in the term of the loan.

Pros

  • It allows for a lower interest rate and lower total interest on the debt

  • You will build equity much faster than with a longer-term loan

  • Become a debt-free homeowner much faster, which may appeal to older buyers nearing retirement

  • It requires a much higher principal repayment than long-term loans

  • Less cash flow for other financial goals, such as saving for retirement or building an emergency fund

  • Higher payments will make it harder to qualify for your debt-to-income ratio

Refinancing is when you take out a new mortgage to pay off your existing mortgage. People usually do this when they can qualify for better terms or a lower interest rate.

Switching from a 30-year mortgage to a 10-year loan can save you a lot of money in interest over time, but your monthly payments will likely skyrocket and closing costs will be added to the loan. If you get a significantly lower interest rate that way, it could help offset some of the monthly increase and pay off, but you’ll have to crunch the numbers.

Let’s say your original 30-year loan was for $350,000 with an interest rate of 7%. After five years of the loan, you decide that you want to accelerate the repayment schedule and consider refinancing to a 10-year loan. Here are some of the key considerations you should think about:

  • How much interest will you pay over the life of the loan? If you stay with your original loan until the end of the 30-year term, you’ll pay $488,281 in total interest.
  • Next, see what impact a 10-year loan would have. If you refinance at the end of five years, you’ll start with a balance of $329,460, but we’ll round up to $335,000 to account for closing costs. If you stayed at the same 7% interest rate, the new loan over 10 years will cost you a total of $131,756 in interest.
  • Now add that amount to the five years of interest you already paid on the first loan. Based on the standard amortization schedule, you would pay $23,242 in interest over the first five years of your 30-year loan, for a total of $154,998.
  • See what savings refinancing will bring you. If you refinanced, you would save $333,283 in interest.
  • Finally, decide if you can afford to increase your monthly payment. In this scenario, your monthly payment would increase from $2,328 to $3,890.

If you could get a lower interest rate when refinancing, the savings would be more significant and the increase in your monthly payment would not be as significant. Use mortgage refinancing calculator and working with a financial advisor to weigh your options can help you choose the best one.

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Unlike Mortgages for 30 and 15 yearsA 10-year loan may not be available everywhere, Ricci says. He recommends getting quotes from at least five or six lenders who specialize in the product and will price it aggressively. “You need to make sure you’re shopping around enough to get the 10-year loan that gives you the most benefits,” he says.

From there, do your due diligence as you would with any mortgage. Compare closing costs, see if there are prepayment penalties, and check the lender’s reputation.

There are a few other options if you’re hoping to pay off your mortgage faster than the traditional 30-year term. Some to explore:

  • 10/1 mortgage with adjustable interest rate: A 10/1 adjustable rate mortgage, or ARM, offers a fixed rate for 10 years, but switches to a variable rate for the remaining 20 years. The upside is that you can often get a very competitive fixed rate early on, and it allows for a minimum payment that’s based on a 30-year plan, Ricci says. If you are able to make aggressive payments and complete the loan in 10 years, you can save a ton. In the meantime, there is a smaller payment requirement in case you have a temporary cash flow problem. However, once a variable rate kicks in, it can become risky and increase your payment obligation.
  • 15 years loan: “When our buyers want to use a 10-year mortgage, I usually recommend that they use a 15-year mortgage instead,” says Green. If they pay an extra 30% each month, they can pay off the mortgage in 10 years, he adds. “But if they get sick, lose their job or face an unexpected financial calamity, the homeowner can find relief by switching back to those smaller 15-year fixed-rate mortgage payments.”
  • 30 years loan: There’s a reason it’s the most popular loan term – it’s because it makes home ownership more affordable from a monthly bill perspective. Again, you can reduce the number of years and the amount of interest you pay by making additional principal payments. One easy way to do this is to switch to bi-weekly payments, where your monthly payment is withdrawn and halved every two weeks. Because you make 26 payments a year, you pay the equivalent of an extra monthly payment each year.
  • Government backed loans: If you can’t qualify for conventional loan programs, you can look into Federal Housing Administration loans or Department of Veterans Affairs Mortgages.

Like all mortgages, interest rates on 10-year loans are determined by a variety of economic factors and each lender’s methodology. This can include the bond market, inflation, the housing market, and the federal funds rate. Specialized programs like the 10-year mortgage are also heavily dependent on product supply and demand, Ricci says. “In an environment where you have rapidly rising interest rates, you will see a large increase in the number of consumers taking out a longer term mortgage because of affordability. This leads to demand problems for shorter mortgages and can lead to an interest rate inversion for 10-year products compared to a 30-year mortgage,” he explains.

You can pay off your mortgage early with most lenders, but you should ask if there are any early repayment penalties. Some lenders may charge you a fee if you try to pay off the loan in full within the first three to five years after origination.

A fixed-rate mortgage locks in your interest rate for the life of the loan, so your first month’s payment will be the same as your last payment. An adjustable rate mortgage usually starts with a fixed, usually competitive, rate for a set period of time, such as five, seven or 10 years. After this period, the loan switches to an adjustable rate that changes every year.

Mortgage rates by mortgage type