10 Year Mortgage RatesWritten by Norene Anderson
Ten year mortgage rates have a fixed interest rate slightly lower than 15-year or 30-year mortgages, which as of July 2010 are just below 4%. The 10-year mortgage gives great opportunity to pay off the loan early. Equity builds rapidly in this short-term loan.
While paying off your home in one third of the time it takes to pay off a traditional 30 year mortgage—and saving substantially on interest payments can be a huge incentive to choose a 10 year loan over a 15 or 30 year loan, you also need to consider that payments on a 10 year loan can run as high as double the payments on a traditional loan. If hard times hit and the higher payment becomes unmanageable, you may face foreclosure. Therefore, it is important to weigh the benefits of a ten year mortgage against the more affordable payments of a thirty year home loan.
An online mortgage calculator can give you all the information you need to determine the amount of principal and interest that will be paid over the process of the term of the loan you're considering. You can quickly see the difference in total savings with a 10-year loan. Taking into account, however, the higher payments required by the ten year loan, if you can find a 30-year mortgage for approximately the same interest rate, it could be a safer plan to go with a traditional-length mortgage and make double payments rather than to risk not being able to make higher payments on the shorter, 10-year loan should you encounter difficult economic times.
The 10 year mortgage rates and mortgage rates in general have dropped recently. This is due in part to the decline in economic growth. There is still a difference in the rates for those making a larger down payment, and of course, different rates based on creditworthiness.
Ten Year Mortgage Rates Are Low
A reputable licensed broker is an excellent advocate to find the best 10 year mortgage rate available. It pays to shop around for the best rate. Just a few percentage points can make a big difference in the total amount paid. Keep in mind that in addition to the principal and interest, there are taxes and insurance that must be paid. Some mortgage institutions include these in the monthly payment. Other lending institutions require them to be paid separately.
Have you found the home of your dreams and want to move right in? It is easy to do with all the tools available online. You can get a jumpstart on pre-qualifying for a loan and choose a broker to coordinate the entire process to become a homeowner. A reputable broker can put you in touch with the lending institution offering the lowest interest rate on a 10-year mortgage.