Today’s 10-Year Mortgage Rates (2023)

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If you’re 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 on a 10-year fixed mortgage is 6.63% compared to the rate a week before of 6.47%.

The 52-week high rate for a 10-year fixed mortgage was 6.63%, and the 52-week low was 6.07%.

How to Get the Best 10-Year Mortgage Rates

Studies have shown that borrowers who comparison shop get better rates than those who borrow from the first lender they find. The best mortgage lenders with the best rates are typically reserved for those with good to excellent credit.

If your credit profile isn’t strong enough for you to get the best mortgage rate possible, review your report and make any necessary changes to improve your credit. To qualify for the lowest interest rate possible, you’ll want it to be as strong as possible.

What Is a 10-Year Mortgage?

A 10-year mortgage is a home loan that lets you repay your lender over just 10 years. It could be a good option for you if you’re looking to refinance or if you want a speedy repayment period. Because the repayment period is so short—most Americans opt for 30-year mortgages—you’ll save considerably on interest payments. You’ll also build equity more quickly.

Even though interest rates are generally lower for shorter terms (like 10 years), you’ll still have higher monthly payments than you would with a 30-year mortgage—or even a 15- or 20-year.

How to Apply for a 10-Year Mortgage

If you’re considering refinancing your mortgage, you may 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 through 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 purchase a home, make sure the monthly payments aren’t too high. Even though it may sound appealing to own your home free and clear in just 10 years, a lot can happen over that time period. A 15-year mortgage may be a safer compromise.

Related: How To Get A Mortgage: 7 Steps To Success

How to Pay Off a Mortgage in 10 Years

You can get a 10-year mortgage from just about any lender. But you might consider sticking with a longer-duration mortgage and paying extra each month instead. This is because the monthly payment on a 10-year mortgage will be significantly higher than one for a 30- or 15-year fixed-rate mortgage. If you have any financial problems down the road—unexpected medical bills, job loss—the flexibility to pay a little less each month will help.

There are a few strategies that will help you pay off your mortgage early. You can pay more toward your mortgage principal with every payment you make, opt to make bi-weekly mortgage payments or make lump sum payments whenever you have the means.

Pros and Cons of 10-Year Fixed Mortgages

While 10-year fixed mortgages can be a good choice for some borrowers, they aren’t right for everyone. Here are some pros and cons to consider when deciding if a 10-year fixed mortgage will work best for your needs:

Pros of a 10-year Fixed Mortgage

  • Lower rates: Mortgages with 10-year terms typically offer some of the lowest interest rates available to homeowners. Loans with longer terms—such as 15- and 30-year mortgages—generally have higher rates. This can help you save a substantial amount of money on interest over the life of the loan. If you already have a mortgage with a longer term, refinancing to a shorter 10-year term could also be an option to reduce your overall interest costs.
  • Shorter repayment: Paying off your mortgage in just 10 years means owning your home free and clear much sooner compared to a longer repayment period.
  • Build equity: Home equity is the difference between the value of your home and what you still owe on your mortgage. Paying down your principal balance more quickly with a 10-year term will help you build equity in your home faster, which will make it available to you if you want to tap into it with a home equity loan or home equity line of credit (HELOC)—or if you’d like to make a profit by selling your home.

Cons of a 10-year Fixed Mortgage

  • Higher monthly payments: Since your repayment term is shorter with a 10-year term, your monthly payments will be higher compared to what you’d pay with a 15- or 30-year loan.
  • More stringent requirements: Since a shorter loan term will come with higher monthly payments, lenders will likely require you to have a higher income to show you can afford repayment. They might also expect you to have a higher credit score or meet other stringent eligibility criteria.
  • Harder to find: Mortgages with 10-year terms aren’t always as readily available as some of the more popular loan options.

Faster, easier mortgage lending

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Alternatives to a 10-year Mortgage

If a conventional 10-year mortgage doesn’t seem right for your situation, other options to consider include:

Conventional 15- or 30-year Mortgage

If you’d prefer lower monthly payments, opting for a conventional loan with a longer term, such as 15 or 30 years, could be a good choice. Just keep in mind that these loans generally come with higher interest rates compared to 10-year mortgages, which means you’ll pay more in interest over time.

Government-backed Loan

You could also consider a loan backed by the Federal Housing Administration (FHA), U.S. Department of Agriculture (USDA) or Department of Veterans Affairs (VA).

FHA and USDA loans are generally geared toward borrowers with lower incomes and poorer credit scores as well as first-time homebuyers. VA loans, on the other hand, are meant for active and veteran service members and their surviving spouses. These loans also require little to no down payment, depending on the program.

While government-backed loans can come with shorter terms, you also have the option to choose a longer, more affordable term if you’d prefer.

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 down a lot of your mortgage and are looking to accelerate your payments. It could also be a good option if you’re making an initial purchase and have the means to pay aggressively toward your principal while saving on interest costs.

Use a mortgage calculator to help you run the numbers and make an educated decision.

What is a good 10-year mortgage rate?

As of October 27, 2022, the average national annual percentage rate (APR) for a 10-year, fixed-rate mortgage was 6.71%—higher than the average 6.28% APR for 15-year loans but lower than the average 7.32% APR for 30-year loans. A good rate will be the lowest you can find with a lender you like and trust as well as minimal fees.

Keep in mind that your rate will depend on several factors, including your credit score and your down payment amount.

Are 10-year mortgage rates lower than 15-year mortgage rates?

Lenders typically offer lower rates on loans with shorter terms, so 10-year mortgage rates tend to be lower than what you’d get on a 15-year loan. However, rates vary depending on the lender as well as your credit score and other qualifications.

To find the best deal, be sure to shop around and compare your options with as many mortgage lenders as possible. It’s also a good idea to:

  • Check your credit. Lenders will review your credit to determine your creditworthiness along with your interest rate. Checking your credit ahead of time can help you get an idea of where you stand.
  • Use a calculator. You can use our 10-year mortgage calculator to see if you can afford the monthly payments.

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What is the 10-year mortgage rate right now? ›

6.60% 6.63%

What is the lowest 10-year mortgage rate ever? ›

2010s. In November 2012, mortgage rates hit a record low of 3.35%. For context, the monthly payment for a home loan of $100,000 at the record high mortgage rate of 18.45% in 1981 was $1,544.

Is there such a thing as a 10-year fixed rate mortgage? ›

A 10-year mortgage is a home loan that allows borrowers to pay off their debt in full in 10 years. This is the shortest term for a fixed-rate mortgage, and monthly payments comprise both the principal and interest. Rates tend to be the lowest compared to 30-year, 20-year, and 15-year mortgages.

What is the current refinance rate for 10-year fixed? ›

6.65% 6.67%

What is the new interest rate today? ›

Current mortgage and refinance rates
ProductInterest rateAPR
10-year fixed-rate5.917%6.102%
7-year ARM6.686%7.449%
5-year ARM6.434%7.496%
3-year ARM6.125%7.204%
5 more rows

What is todays mortgage rate? ›

Current mortgage and refinance interest rates
ProductInterest RateAPR
20-Year Fixed Rate6.98%7.01%
15-Year Fixed Rate6.43%6.46%
10-Year Fixed Rate6.52%6.55%
5-1 ARM6.06%7.88%
5 more rows

How high will mortgage rates go in 2023? ›

Freddie Mac chief economist Sam Khater. “[W]ith the rate of inflation decelerating rates should gently decline over the course of 2023.” Fannie Mae. 30-year fixed rate mortgage will average 6.4% for Q2 2023, according to the May Housing Forecast.

Will mortgage interest rates go down in 2023? ›

We expect that 30-year mortgage rates will end 2023 at 5.2%,” the organization noted in its forecast commentary. It since has walked back its forecast slightly but still sees rates dipping below 6%, to 5.6%, by the end of the year.

Will interest rates go down in 2023? ›

1) Interest-rate forecast.

We project a year-end 2023 federal-funds rate of 4.75%, falling below 2.00% by mid-2025.

What are the benefits of a 10-year mortgage? ›

Pros of a 10-Year Mortgage Term

Faster Payoff: You'll own your home outright in just 10 years. Competitive Rates: 10-year mortgage rates are often lower than rates for mortgages with longer terms. Less Interest Paid: A shorter mortgage term means less interest is accrued, and thus paid, over the life of the loan.

What is a 10-year fixed over 30 mortgage? ›

It provides you the security of an interest rate and a monthly payment that is fixed for the first 10 years; then, makes available the option of paying the outstanding balance in full or elect to amortize the remaining balance over the final 20 years at our current 30-year fixed rate, but no more than 3% above your ...

How does a 10-year fixed mortgage work? ›

A 10-year fixed mortgage is a mortgage that has a specific, fixed rate of interest that does not change for 10 years. At the end of 10 years you will have paid off your mortgage completely. If you choose a 10-year fixed mortgage, your monthly payment will be the same every month for 10 years.

Who has the lowest interest rate for mortgage? ›

Lenders with the best mortgage rates:
  • Freedom Mortgage: 2.66%
  • Bank of America: 2.80%
  • Veterans United*: 2.86%
  • Better Mortgage: 2.86%
  • PennyMac: 2.87%
  • AmeriSave: 2.90%
  • Navy Federal Credit Union*: 2.93%
  • Home Point Financial: 2.94%
Aug 12, 2022

Are 10 year mortgage rates lower than 15? ›

Are 10-year mortgage rates lower than 15-year mortgage rates? Lenders typically offer lower rates on loans with shorter terms, so 10-year mortgage rates tend to be lower than what you'd get on a 15-year loan.

What credit score do you need to buy a mortgage? ›

It's recommended you have a credit score of 620 or higher when you apply for a conventional loan. If your score is below 620, lenders either won't be able to approve your loan or may be required to offer you a higher interest rate, which can result in higher monthly payments.

Will mortgage interest rates go down? ›

Along those lines, organizations like Fannie Mae and the Mortgage Bankers Association forecast that the average rate on 30-year fixed-rate mortgages will decline throughout 2023, continuing into the first quarter of 2024.

How long will interest rates stay high? ›

'I believe by the end of 2023 we will see rates start to fall with a target of between 2.5 to 3 per cent in 2024.

How high will interest rates get? ›

Rates will keep rising in 2023

This projection was revised in March, with the FOMC projecting the FRR to hoover between 5.1 and 5.6 percent in 2021. After the Federal Reserve pushed up rates twenty-five basis points in late March, they currently stand between 4.50 and 5.0 percent.

Are mortgage rates really low right now? ›

The current rate for a 30-year fixed-rate mortgage is 6.71%, down by 0.08 percentage points from last week. The 30-year rate averaged 5.23% this time a year ago.

What will the mortgage rate be in 2024? ›

Fannie Mae expects the 30-year fixed to ease to around 6.1% in the second quarter of 2023, before falling to 5.9% in the third quarter and 5.7% in Q4. And it gets even better than that. By the end of 2024, they expect the 30-year fixed to average 5.2%.

Are mortgage rates going higher or lower? ›

Prediction: Rates will rise

“Rates have adjusted up to an average on 30-year fixed between 6.8% and 7.1% and on the 15-year fixed between 6.375% and 6.5%. Buyers and mortgage consumers have mostly adjusted to the new reality of interest rates being higher as they have been here for two consecutive quarters now.

Will mortgage rates go down again in 2024? ›

Fannie Mae, Mortgage Bankers Association and National Association of Realtors expect mortgage rates to drop through the first quarter of 2024, by half a percentage point to about nine-tenths of a percentage point. Figures are the predicted quarterly average rates for the 30-year fixed-rate mortgage.

Will mortgage rates ever go back to 3 percent? ›

Even so, Evangelou doesn't expect mortgage rates to go back to 3% anytime soon but notes that even fixed mortgage rates below 6% will still be less than the historical average of roughly 8%. Other experts agree that rates will likely come down in the next few years.

Is it a good time to lock in mortgage rate? ›

The ideal time to lock your mortgage rate is when interest rates are at their lowest, but this is hard to predict — even for the experts. It's worth noting that interest rates could decrease during your lock period. Should this happen, you'll most likely have to pay the rate you initially locked in.

Where are interest rates going in the next 5 years? ›

The predictions made by the various analysts and banks provide insight into what the financial markets anticipate for interest rates over the next few years. Based on recent data, Trading Economics predicts a rise to 5% in 2023 before falling back down to 4.25% in 2024 and 3.25% in 2025.

What will interest rates be in 2023 and 2024? ›

The Fed penciled in a 5-5.25 percent peak interest rate for 2023, after which officials see rates falling to 4.25-4.5 percent by the end of 2024.

Where are interest rates headed in 2023? ›

Interest Rate Hike in 2023

The terminal rate, which is the rate at which the benchmark fed funds rate will peak, has been kept at 5.1%. This is equivalent to a target range of 5%-5.25%, which has remained unchanged from the last estimate in December.

What will interest rates be in 2025? ›

An interest rate forecast by Trading Economics, as of 12 May, predicted that the Fed Funds Rate could hit 5.25% by the end of this quarter - a forecast that has been materialised. The rate is then predicted to fall back to 3.75% in 2024 and 3.25% in 2025, according to our econometric models.

What is the best age to have your mortgage paid off? ›

“Shark Tank” investor Kevin O'Leary has said the ideal age to be debt-free is 45, especially if you want to retire by age 60. Being debt-free — including paying off your mortgage — by your mid-40s puts you on the early path toward success, O'Leary argued.

What is the oldest age for a mortgage? ›

Summary: maximum age limits for mortgages

Many lenders impose an age cap at 65 - 70, but will allow the mortgage to continue into retirement if affordability is sufficient. Lender choices become more limited, but some will cap at age 75 and a handful up to 80 if eligibility criteria are met.

How to pay off a 10 year mortgage in 5 years? ›

How To Pay Off Your Mortgage In 5 Years (or less!)
  1. Create A Monthly Budget. ...
  2. Purchase A Home You Can Afford. ...
  3. Put Down A Large Down Payment. ...
  4. Downsize To A Smaller Home. ...
  5. Pay Off Your Other Debts First. ...
  6. Live Off Less Than You Make (live on 50% of income) ...
  7. Decide If A Refinance Is Right For You.
Oct 26, 2021

How to cut 10 years off mortgage? ›

Tips to pay off mortgage early
  1. Refinance your mortgage. ...
  2. Make extra mortgage payments. ...
  3. Make one extra mortgage payment each year. ...
  4. Round up your mortgage payments. ...
  5. Try the dollar-a-month plan. ...
  6. Use unexpected income.

How to pay 30 year mortgage in 10 years? ›

How to Pay Your 30-Year Mortgage in 10 Years
  1. Buy a Smaller Home. Really consider how much home you need to buy. ...
  2. Make a Bigger Down Payment. ...
  3. Get Rid of High-Interest Debt First. ...
  4. Prioritize Your Mortgage Payments. ...
  5. Make a Bigger Payment Each Month. ...
  6. Put Windfalls Toward Your Principal. ...
  7. Earn Side Income. ...
  8. Refinance Your Mortgage.

Does a 10 year arm make sense? ›

Pros. Relatively long fixed-rate period: A 10/1 ARM has a relatively long fixed-rate period, which can be attractive, especially considering the average homeowner tends to move before then. Could potentially pay less in interest: With a 10/1 ARM, you could save on interest as long as rates remain low.

Why did my mortgage go up if I have a fixed rate? ›

A fixed rate means the principal and interest payment on your loan will never change. However, your monthly mortgage payment also includes an escrow payment for real estate taxes and insurance premiums, which do change periodically.

How long should you have a fixed-rate mortgage? ›

A fixed rate loan is a loan that has a fixed interest rate and therefore fixed loan repayments. The time period of these loans can vary, but you can usually "lock in" your repayments for between 1-5 years. Although the fixed rate period may be 3 years, the total length of the loan itself may be 25 or 30 years.

Is 4.75 a good mortgage rate? ›

Is 4.75% a good interest rate for a mortgage? Currently, yes—4.75% is a good interest rate for a mortgage. While mortgage rates fluctuate so often—which can affect the definition of a good interest rate for a mortgage—4.75% is lower than the current average for both a 15-year fixed loan and a 30-year mortgage.

What is the best way to get the lowest mortgage rate? ›

7 ways to reduce mortgage rates
  1. Shop around. When looking for mortgages, be sure to contact several different lenders. ...
  2. Improve your credit score. ...
  3. Choose your loan term carefully. ...
  4. Make a larger down payment. ...
  5. Buy mortgage points. ...
  6. Rate locks. ...
  7. Refinance your mortgage.

Which bank has the lowest interest rate? ›

Ans. Among leading private sector banks, Axis Bank, IDFC First Bank, IndusInd Bank offer the lowest interest rates on personal loans starting at 10.49% p.a., closely followed by HDFC Bank and ICICI Bank offering personal loans at 10.50% p.a. onwards.

Why is it better to take a 15-year mortgage instead of a 30-year mortgage? ›

People with a 15-year term pay more per month than those with a 30-year term. In exchange, they are given a lower interest rate. This means that borrowers with a 15-year term pay their debt in half the time and possibly save thousands of dollars over the life of their mortgage.

Is there a 12 year mortgage? ›

The BECU 12-year mortgage lets you:

Refinance your existing mortgage without additional BECU fees. Enjoy significant savings in interest.

Why is it better to take out a 15-year mortgage instead of a 30-year mortgage Dave Ramsey? ›

You'll build equity in your home faster.

Since you're making bigger monthly payments on a 15-year mortgage, you'll pay down the interest a lot faster, which means more of your payment will go to the principal every month.

What credit score is needed to buy a 300k house? ›

Additionally, you'll need to maintain an “acceptable” credit history. Some mortgage lenders are happy with a credit score of 580, but many prefer 620-660 or higher.

How much of a loan can I get with a 650 credit score? ›

You can borrow as much as $40,000 - $100,000+ with a 650 credit score. The exact amount of money you will get depends on other factors besides your credit score, such as your income, your employment status, the type of loan you get, and even the lender.

What is the highest credit score possible? ›

FICO scores range from 300 to 850.


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