10-Year Fixed Mortgage

10 Year Fixed Mortgage Rates

If you are looking for the security of a fixed rate mortgage and are planning on paying off your loan quickly, then a 10 year mortgage might be the right program for you. 10 Year fixed rate loans tend to be the lowest of all fixed rate products. You may also save a tremendous amount of interest over the life of the loan due to the shortened duration of the mortgage and rapid pay down of principal. If you can afford the payments, then we say ''go for it''. Let's take a look at some of the numbers:

Sample loan comparison between a 15 year fixed and a 10 year fixed rate loan:

15 Year Fixed
$100,000 Loan Amount
Note Rate: 5.50%
Monthly Principal & Interest Payment: $817.08
Total Interest Paid Over the Life of the Loan: $47,075.02

10 Year Fixed
$100,000 Loan Amount
Note Rate: 5.375%
Monthly Principal & Interest Payment: $1,079.33
Total Interest Paid Over the Life of the Loan: $29,519.16

Total Interest Saved with 10-year mortgage: $17,555.68
As you can see, you could save a considerable amount of money by simply shortening the length of the loan five years. Note this is just a rough comparison and only takes into about the note rate. Be sure to review APR when considering a provider.