Best 10-Year Mortgage Rates

If you’re considering taking out a mortgage, it’s important to decide how long you want to take to repay the loan. By far, the most popular type of mortgage is the 30-year fixed rate mortgage. This is an ideal option for new and younger home buyers who intend to stay in their homes for a long time.

However, 10-year mortgage rates tend to be much more favorable than those of mortgages with longer terms. A shorter term also allows you to pay off your loan faster so you can build equity in your home quickly. That said, 10-year mortgages aren’t for everyone. Not every provider offers them, and some only offer them as adjustable-rate mortgages (ARMs).

Average 10-year mortgage rates tend to be between 3% and 4%, but they vary. Here are some of the best 10-year mortgage rates and providers to help you decide. Also compare current mortgage rates if you’re interested in looking at multiple products and terms.

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Current 10-Year Mortgage Rates

Product Interest Rate APR
10-Year Fixed RateN/AN/A
10-Year Adjustable RateN/AN/A

Rates data as of

4 Best 10-Year Mortgage Providers of 2020

  • Quicken Loans: Highest levels of customer satisfaction
  • Bank of America: Best 10-year ARM
  • New American Funding: Best for borrowers with poor credit
  • U.S. Bank: Best for investment properties

Quicken Loans — Highest levels of customer satisfaction

Quicken Loans is the largest online retail mortgage lender in the country and one of the highest-rated mortgage lenders available today. J.D. Power has ranked this mortgage provider #1 In customer satisfaction for primary mortgage origination 9 years in a row.

The online process makes obtaining a loan quick and easy. Instead of meeting in person, all you have to do is upload documents using the online portal. If you do want to talk to a person, they’re just a click away.

Bank of America — Best 10-year ARM

As the second-largest bank in the U.S., Bank of America has a full range of mortgage products, including 30-year, 20-year and 15-year fixed loans. They only offer an ARM for 10-year mortgages, but the rates are competitive and a range of online tools make applying for it easy.

New American Funding — Best for borrowers with poor credit

Like other mortgage providers, New American Funding allows you to begin the mortgage application online. However, their underwriting process is a manual one, which means your application won’t be rejected outright by a computer algorithm.

This is advantageous for borrowers with poor credit. New American Funding is more likely to look at your entire financial picture, so even if your credit isn’t fantastic, New American may still approve you for a 10-year mortgage if it’s clear you can make the payments with your income.

U.S. Bank — Best for investment properties

U.S. Bank offers a 10-year ARM at a reasonable rate, but other providers may have better offers for regular home buyers. The key difference with U.S. Bank is that it offers loans for second homes and investment properties.

U.S. Bank might be a viable option for anyone looking to invest in real estate. It may also be a decent choice for investors who wish to start a rental home business with a short-term mortgage.

Compare the 4 Best 10-Year Mortgage Lenders of 2020

LenderRateAPRMin Down Payment
Quicken Loans4.25%4.362%3%
Bank of America3.250%3.771%3%
New American Funding3.625%3.769%3%
U.S. Bank3.750%3.931%3%

What is a 10-year Mortgage?

A 10-year mortgage is a shorter-term mortgage that you repay relatively quickly, but you pay in monthly installments just like any other type of mortgage. The most popular types of conventional mortgages have terms of 15 years or 30 years, so 10-year mortgages are less common. Some providers don’t offer them, and others may require additional documentation from you to approve them.

A 10-year mortgage results in rather large monthly payments. They enable you to avoid accruing long-term interest, but the loan must be paid to completion in a third of the time of a traditional 30-year term mortgage. Most experts recommend this type of loan for people who have a high and steady income, are relatively debt-free or are close to retirement.

Compare 10-Year Mortgages to Other Mortgage Types

10-Year vs 30-Year Fixed Rate Mortgage

30-year mortgages are the most popular type of term mortgages because they enable the buyer to make smaller monthly payments over a longer period. They are usually the best choice for home buyers who intend to live in their homes as a primary residence. They are great for first-time home buyers and younger buyers who earn a middle-of-the-road income.

Nonetheless, a 30-year mortgage typically comes with a higher interest rate, which results in a higher overall payment to the lender by the end of the term. For this reason, 10- and 15-year mortgages are often better for investors and those who can afford higher monthly payments.

10-Year Fixed Rate vs 10-Year Jumbo Rate Mortgage

A jumbo mortgage is a loan that covers the expense of a high-value property that cannot be purchased with a traditional loan. Individuals who take out jumbo loans are taking on a substantial amount of debt, which makes the loan a risky investment for the lender. Lenders typically require borrowers to go through a heavy vetting process before taking out a jumbo loan.

If 10-year conventional mortgages are already rare, 10-year jumbo mortgages are even more so. They are not recommended for most home buyers. Usually, they are only suitable for borrowers who have enough cash to cover the high monthly payments and then some.

10-Year Fixed Rate vs 10-Year Adjustable-Rate Mortgage

Some lenders will only offer a 10-year mortgage as an adjustable-rate mortgage, or ARM. An ARM will come with a fixed interest rate for set number of months or years, and will automatically switch to an adjustable mortgage rate determined by the market. Meanwhile, a fixed-rate 10-year mortgage has the same interest rate throughout the repayment period.

ARMs can be advantageous because they initially come with a lower interest rate. However, they can also be risky. Once the fixed period ends, interest rates are dependent upon the market and can go up substantially.

The Final Word

Real estate investors, individuals with high and steady monthly incomes, and home buyers with excellent credit may wish to consider a 10-year mortgage to build equity faster. If you’re considering a 10-year mortgage, look for low rates from reputable companies like Quicken or Bank of America. Whether you choose a fixed rate or adjustable rate mortgage depends on your tolerance for risk, and first-time and middle-income buyers should consider mortgages with longer repayment terms.

Michael Rand

Personal Finance Contributor

Michael Rand is a business and personal finance writer based in Beverly, Massachusetts. He holds a master’s degree in writing from Salem State University and spent years producing content for financial services clients as an agency writer. His work has been featured in publications like, The Simple Dollar, and