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Compare 10-year mortgages

Build equity fast, but prepare for steep monthly payments.

Updated
Fact checked

To help you pay off your mortgage fast, some banks offer a rare 10-year fixed term. If you can comfortably make the monthly payments, you stand to save thousands in interest.

How does a 10-year mortgage compare to a 30-year mortgage?

A 10-year mortgage offers you the chance to pay a lot less in interest over a short term in exchange for higher monthly payments than a 30-year mortgage.

While the interest paid on a 30-year mortgage can nearly equal the initial principal, you may pay only 25% of that initial principal as interest with a 10-year term.

A $200,000 mortgage at 4.50% interest

Mortgage termMonthly PaymentTotal interest paidSavings
10 years$2,072.77$48,732.18$133,499.49
30 years$1,013.37$164,813.42–
While your monthly payments on a $200,000 mortgage with a 4.5% APR are $1,013, the interest you’ll have paid by the end of the loan term totals $164,813 — or more than 80% of the original principal.

A 10-year mortgage will run you $48,732 in total interest, though the trade-off is monthly payments of $2,073. For further comparison, that’s roughly $30,000 less than interest you’ll pay on a 15-year mortgage.

Compared to a 30-year mortgage, you could save $133,499.49 in interest on the same home with a 10-year mortgage.

Compare mortgage lenders

Compare top brands by home loan type, state availability and credit score. Select See rates to provide the lender with basic property and financial details for personalized rates.

1 - 5 of 5
Updated regularly
Name Product Loan products offered State availability Min. credit score ‎
Rocket Mortgage
(NMLS #3030)
Rocket Mortgage
Conventional, Jumbo, FHA, VA, Refinance
Available in all states
620
See rates
More Info
Streamline your mortgage from quote to final payment — all from your computer or phone.
Morty
(NMLS #1429243)
Morty
Conventional, Jumbo
Not available in: AZ, HI, MA, MO, NV, UT
620
See rates
More Info
Preapproval in minutes and closing in as little as 3 weeks with no origination fees.
LendingTree
(NMLS #1136)
LendingTree
HELOC, Home Equity loans
Available in all states
620
See rates
More Info
Connect with vetted lenders quickly through this free online marketplace.
Veterans United
(NMLS #1907)
Veterans United
Conventional, FHA, VA, USDA, Jumbo, Refinance
Available in all states
620
See rates
More Info
Veterans United stands out from other lenders for its focus on serving the military community.
Freedom Mortgage
(NMLS #2767)
Freedom Mortgage
Conventional, Jumbo, FHA, VA, USDA, Refinance
Available in all states
620
See rates
More Info
A lender that excels in FHA and VA loans, offering low down payment options to borrowers.
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What are the benefits of a 10-year mortgage?

A 10-year mortgage offers big perks like:

  • Low interest rates. Most lenders that offer 10-year terms keep interest rates low, sometimes less than a 15-year rate.
  • Huge interest savings.The interest you’ll end up paying on a 10-year mortgage is much lower than that of a 30-year loan.
  • Quick equity build-up. With more of your payment going toward your principal, you’re building equity at a much faster rate than through a 15- or 30-year mortgage.

What should I watch out for?

Though 10-year mortgage savings are substantial, watch for potential financial drawbacks:

  • High monthly payments. Monthly payments on a 10-year mortgage are high compared to 30-year mortgages, which can become a problem if you aren’t easily able to cover living expenses.
  • Less flexibility. High monthly payments could mean you have less money for investing elsewhere, which can be risky.
  • Limited purchasing power. You might not qualify for a more expensive home under a 10-year mortgage.

Is a 10-year mortgage loan right for me?

A 10-year mortgage isn’t for everyone. The monthly payments are demanding, and locking yourself into a 10-year mortgage could limit you from spending in other areas.

But if your income can support it, paying over a decade rather than 30 years can help you build equity and save thousands in interest.

ARM vs. fixed 10-year mortgage

Adjustable-rate mortgages offer interest rates that can fluctuate over time based on the market. For example, a 5/1 ARM has a fixed interest rate for the first five years, and once that time is up, the rate can change annually.

Because ARMs come in 30-year terms only, 10/1 is the only “10 year” ARM. This means your interest rate is fixed for the first 10 years of your term and may change for each subsequent 20.

If you plan on moving to another home within 10 years, a 10/1 ARM is likely the better financial choice to help you save on interest without the high monthly costs of a 10-year fixed payment. Otherwise, a 10-year fixed mortgage can help you pay off your home loan and own your house quickly.

Which banks offer a 10-year mortgage?

10-year mortgages are rare, and some consider it a type of specialty loan program. As such, not many banks openly advertise this term. Banks currently advertising a 10-year mortgage include:

Bottom line

If you can afford the monthly payments of a 10-year mortgage — and you can find a bank that offers them — you can save a lot in interest compared to a traditional 30-year term.

But those high monthly payments can be prohibitive for those with unstable finances, making a longer-term mortgage a safer, more flexible, more reliable choice.

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