What is a 10-Year Fixed Mortgage?

In this article:

• What Is a 10-Year Fixed Mortgage?
• Advantages of a 10-Year Fixed Mortgage
• Disadvantages of a 10-Year Fixed Mortgage
• Current 10-Year Fixed Mortgage Rates

What Is a 10-Year Fixed Mortgage?

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. However, the breakdown of how much of your mortgage payment goes to principal and how much goes to interest will shift throughout the lifetime of the loan. Your payments will be spread over 10 years, with the interest payments making up the majority of the payment at the beginning, and then principal paid off toward the end of the term.

10-year fixed mortgages are not the most typical fixed rate loan, but they have increased in popularity recently. When rates are low and you can afford the much higher monthly payment, a 10-year fixed mortgage allows you to pay off your mortgage in only 10 years, build equity at a faster rate and save thousands in interest.

Advantages of a 10-Year Fixed Mortgage

• Less mortgage insurance compared with a 30-year fixed mortgage if you are putting less than 20 percent down.
• It might make sense if owning your home outright quickly is important to you.
• It might make sense if you would like to have your mortgage paid off before a big life event such as sending your kid to college, retiring, etc.
• 10-year rates are lower than 30-year fixed rates.
• Great to lock in safe, consistent and stable rate if rates are low.
• Pay off mortgage completely in a relatively short period of time. Some people don’t like owing anyone money.
• Build up equity at a faster rate than a longer loan term.
• Save lots of money in interest because the lifetime of the loan is shorter.

Check today’s mortgage rates on Zillow

Disadvantages of a 10-Year Fixed Mortgage

• Very high monthly payment means that you have less cash for emergencies, if you lose your job, etc.
• Very high monthly payment could prevent you from investing or diversifying your investments more.
• Difference in rate between a 15-year fixed loan and a 10-year fixed loan is not that significant.
• Less mortgage interest to deduct on your taxes.
• With rising cost of inflation, your income and other expenses will likely rise but your mortgage payment won’t, so essentially it’s cheaper to get a 30-year fixed loan.
• Equity is tied up in the house, and you’d have to sell or get a home equity loan to get money out of your house investment.

Current 10-Year Fixed Mortgage Rates

Below are today’s average 10-year fixed interest rates. You can also use Zillow to get interest rates for your particular situation. Enter your loan details and you'll get free quotes from multiple lenders, anonymously.

Next: Shop for 10-year fixed mortgage rates on Zillow.