Question:

Are 10 year fixed rate mortgages popular?

Answer:

The 10 year fixed rate mortgages may be popular among borrowers who want to pay off their mortgage as soon as possible. However, even though the 10-year fixed rate mortgage rates will be the lowest compared to FRMs with longer terms, the monthly payment will be the highest of all, since the amortization period is shortest.

The 10 year fixed rate mortgage is possible with either first or second mortgage loans, or with home equity programs, mortgage refinance or subprime financing.

A 10 year fixed rate mortgage loan will allow you to pay off your home much sooner than with other mortgage options and you will save a lot of money on interest. The difference in interest rate between a 30-year and 10-year fixed rate mortgage can total a whole percent. Even though in the short run you are paying more in monthly payments, you will save tens of thousands on interest in the long run.

Mortgage rates hit their lowest since 1955. Ask the home loan experts we recommend Quicken Loans how to take advantage of them.
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