While a 10 year mortgage loan is not for everyone it does have some great benefits. If you are currently shopping for a home loan or looking to refinance don’t overlook your other financing options besides the traditional 30 year fixed rate mortgage.
One of the greatest benefits of a shorter term mortgage, such as the 10 year fixed, is that the interest rate is much lower than longer term loans such as the 30 year fixed. Mortgage interest rates on shorter term loans can be 1-1.5% lower than 30 year fixed rate loans. This results in thousands of dollars saved in interest over the life of the loan.
The one thing that holds many back from obtaining a short term loan like the 10 year fixed is the higher monthly payments. Not everyone has the cash flow available to spend more on their house payment, but it will get you mortgage free faster, and will save you money in the long run.
If you do have a stable job that you don’t plan on moving from and your income is steady a 10 year fixed rate mortgage may be right for you. Consult your loan officer for more details on short term mortgages and find out what works best for your situation.