Current 10-Year Refinance Rate Trends
Updated January 14, 2021
- 10-Year Fixed Rate 2.460%; APR of 2.670%.
If you’re a homeowner who’s considering the idea of refinancing your home mortgage while interest rates are low, you have a ton of different term options, including 10 year loan terms. While not as common as some other refinancing terms, like 15 or 30 years, refinancing your home can be done through a 10-year fixed-rate loan.
Deciding on the right type of loan for your refinancing needs is important. The 10-year fixed-rate refinance loan option gives you an aggressive way to pay off your home quickly, with higher monthly payments but major interest savings. If you are close to paying off your mortgage but to lower your monthly payments, a 10-year refinance can help as well.
4 best 10-year refinance rates of 2020
- Huntington Bank: Best for customer support
- BBVA: Best for fixed rate options
- Star One Credit Union: Best for jumbo loans
- Quicken Loans: Best for customer satisfaction
Huntington Bank — Best for support
The APR rates on 10-year fixed-rate refinance loans with Huntington Bank were higher than some of the other available options. While rates will change based on your situation, preliminary checks showed APRs on 10-year options around the mid to high 4%. But, while Huntington Bank may not have the lowest refinance rates, this lender offers a strong personal touch. You can speak to an agent via phone, online or in person at one of the branch locations. Currently, Huntington Bank only offers refinancing options in Illinois, Indiana, Kentucky, Michigan, Ohio, Pennsylvania, West Virginia and Wisconsin.
BBVA — Best for fixed rate
Fixed-rate refinancing loans give you the security of knowing what your payments will be for the life of the loan. With BBVA, 10-year refinance loans start at a competitive rate around the mid-3.5% on loans less than $510,400. These rates are not only great for fixed-rate refinancing, but they are competitive with the ARM rates, too. This lender also offers 10-year refinancing rates on jumbo loans starting in the low 3% range. The bank’s jumbo products are on par with what you can get from Wells Fargo.
Star One Credit Union — Best for jumbo loans
Homeowners with more expensive homes may be on the lookout for a jumbo refinance loan to pay down their mortgage more aggressively. Star One Credit Union delivers sub 3% rates for 10-year mortgages. According to the lender, loans are available up to $5 million without a jump in APR rates.
Additionally, Star One Credit Union offers a special no closing cost option for 10-year mortgage borrowers that’s pretty attractive overall. If you currently have a mortgage through this lender, you can also look into loan modifications to achieve more favorable repayments terms that link up with your financial goals.
Quicken Loans — Best for customer satisfaction
10-year mortgages are available from Quicken Loans starting in the mid 3% range for APRs. This is about the middle ground for interest on this type of loan, with some options higher and some lower. You can apply for your loan either online or over the phone with a loan officer. For borrowers looking to get rid of PMI, Quicken Loans offers a product called PMI Advantage that will slightly lower your interest rate but eliminate PMI from your monthly costs.
The big standout of Quicken Loans, though, is the customer satisfaction. Knowing that most customers who work with the lender end up happy should be a big boost of confidence for a skeptical borrower. Quicken has been number one in customer satisfaction for primary mortgage origination for 10 years straight and number one in customer satisfaction for primary mortgage servicing for 6 years straight, per J.D. Power.
Compare 4 best 10-year refinance rates of 2020
|Huntington Bank||4.66%||4.7%||Customer service seven days a week|
|BBVA||2.5%||2.996%||Online rates updated daily|
|Star One Credit Union||2.875%||2.92%||Wide array of mortgage products|
|Quicken Loans||2.99%||3.647%||100% online lending experience in most cases|
What is a 10-year refinance?
Refinancing your mortgage is essentially taking out a second loan to pay off your existing mortgage, and in turn, the new loan becomes your sole, primary home loan. Once you have refinanced, you are only bound by the terms of your new loan. Homeowners often refinance to take advantage things like lower mortgage interest rates, an improved credit profile or to seek more advantageous repayment terms.
A 10-year refinance is a type of refinancing in which repayment is completed over the course of 10 years. Generally, these loans are used for a more aggressive approach to paying off a loan with the intent to save on interest costs. If your existing loan has longer than 10 years left on the term, you can expect your monthly payments to go up unless there has been a dramatic drop in interest rates. That said, your amortization schedule will adjust and more of your payments will be going toward the principal, which will help you pay off your loan quicker and save on interest costs.
10-year refinance vs. other mortgage refinancing
10- year fixed-term refinance vs. 10/1 ARM refinance
Deciding between a fixed-term or adjustable-rate refinance depends on your life plans. A 10/1 ARM refinance acts more like a conventional loan, but with 10 years of fixed-rate interest and variable interest thereafter. If you plan on staying in your home longer than 10 years or are unsure, you’ll probably want to opt for the security of a fixed-rate refinance. If you’re for sure planning on selling or moving before the 10-year mark, you may benefit from taking advantage of the lower rates available during the first decade of an ARM.
10- year refinance vs. 30-year refinance
It can be tempting to refinance for 30 years to have a much smaller monthly payment. Unless this is necessary, though, you may want to think twice. By doing this, you’re most likely going to incur significantly more interest costs over the life of the loan. Remember, they may be smaller monthly payments, but you’re making them for an additional two decades.
10- year refinance vs. 15-year refinance
If you’re looking to take a faster approach to building equity and paying off your mortgage, a 10-year refinance is the most aggressive option available. However, you will see much higher monthly payments. If the payments are a little too high with the 10-year refinance but you still want an aggressive approach, you may want to consider a 15-year option. If you’re getting a better rate and taking years off your repayment terms, you’re going to see savings.