10 Year Fixed Mortgage Rates

• Payable over 10 years
• Amortized over 10 years
• Payments never change for 10 years
• Rate never changes for 10 years

10 year fixed mortgage rates will require a payment that is quite a bit higher than a traditional 30 year fixed rate mortgage. The advantages of a 10 year fixed rate mortgage include less interest payable over the life of the loan as well as a lower interest rate than a traditional mortgage. This will allow borrowers to pay considerably less interest over the life of their home loan.

10 year fixed mortgage rates are lower than 30 year mortgage for several reasons. Rates are based on risk. A loan with more risk will always have a higher rate than a loan with less risk. When the lender is loaning the money for considerably less time they are willing to lend the money at a lower interest rate. This is the basic reason that 10 year fixed mortgage rates will always be lower than longer term mortgages.

Your new 10 year fixed rate mortgage will be paid off in just 120 months and an amortization table is a great way to see how much principal and interest is paid each month. 10 year fixed rate mortgages will pay down the principal much faster than 30 year fixed rate mortgages.

It is important to consider all of the mortgage loans that are available before deciding what is best for your financial situation. Home owners need to be prepared to make a larger payment each month if they have decided on a 10 year fixed mortgage. You can use a loan calculator to compare the difference in payment for different terms. 10 year fixed mortgage rates are also a bit harder to qualify for. Because the payment is higher than longer term loans the home owner will need to make more money than they would to qualify for a longer term loan. This is due to a higher DTI (debt to income) that results from 10 year fixed rate mortgages. Consult with the mortgage professional that we connect you with and they will let you know if you can qualify. There are also money other options available if you would like to pay your mortgage off in less than 30 years such as bi-weekly payments. Talk with our lenders to find out more about the exciting bi-weekly payment program.