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If you are looking to refinance or in some cases buy a new home, a 10 year mortgage might be a good option for you. Here are the current 10-year mortgage rates and how you can find the right lender.
What are the current 10-year mortgage rates
The current average rate for a 10-year fixed mortgage is 4.76%, compared to 4.91% the previous week.
The 52-week high rate for a 10-year fixed mortgage was 5.46% and the 52-week low rate was 4.42%.
What is a 10 year mortgage?
A 10-year mortgage is a home loan that allows you to repay your lender over just 10 years. This could be a good option for you if you are looking to refinance or want a quick payback period. Because the repayment period is so short (most Americans opt for 30-year mortgages), you’ll save significantly on interest payments. You’ll also build equity faster.
Even though interest rates are generally lower for shorter terms (like 10 years), you’ll still have higher monthly payments than with a 30-year mortgage, or even a 15 or 20-year mortgage.
How to Apply for a 10 Year Mortgage
If you’re considering refinancing your mortgage, you might want to start by contacting your current lender to see if they can offer you better terms. But it usually pays to shop around. You can get a mortgage from banks, credit unions, and many online lenders. Compare rates with multiple lenders as well as the total cost of the loan, including fees.
On the other hand, if you’re considering a 10-year mortgage to help you buy a home, make sure the monthly payments aren’t too high. While it may seem appealing to own your home free and clear in just 10 years, a lot can happen in that time. A 15-year mortgage may be a safer compromise.
Related: How to Get a Mortgage: 7 Steps to Success
How to get the best 10-year mortgage rates
Studies have shown that borrowers who shop around get better rates than those who borrow from the first lender they find. The best mortgage lenders with the best rates are usually reserved for those with good to excellent credit.
If your credit profile isn’t strong enough for you to get the best possible mortgage rate, review your report and make any necessary changes to improve your credit. To qualify for the lowest possible interest rate, you’ll want it to be as solid as possible.
How to pay off a mortgage in 10 years
You can get a 10 year mortgage from any lender. But you might consider sticking with a longer-term mortgage and paying extra each month instead. Indeed, the monthly payment of a 10-year mortgage will be significantly higher than that of a 30- or 15-year fixed rate mortgage. If you run into financial problems in the future (unexpected medical bills, job loss), the ability to pay a little less each month will help.
There are a few strategies that will help you pay off your mortgage sooner. You can pay more for your mortgage principal with each payment you make, choose to make mortgage payments every two weeks, or make lump sum payments whenever you can afford them.
Faster and easier mortgages
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Frequently Asked Questions (FAQs)
Is a 10 year mortgage right for me?
A 10-year mortgage might be the right choice for you if you’ve already paid off a large portion of your mortgage and are looking to speed up your payments. It could also be a good option if you’re making an initial purchase and can afford to pay your principal aggressively while saving on interest charges.
Use a mortgage calculator to help you calculate the numbers and make an informed decision.
What are the pros and cons of a 10 year mortgage?
The biggest advantage of a 10-year mortgage is that you can get one of the lowest interest rates available to homeowners (longer terms usually have higher interest rates). This gives you the opportunity to pay off your loan as quickly as possible and reduce your principal while spending less on interest charges.
The biggest downside to a 10-year mortgage is that it locks you into an aggressive repayment schedule that will be significantly more expensive than longer-term mortgages. Also, 10-year mortgages aren’t always as readily available as some of the more popular options.