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10 year fixed refinance rates

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How it works

How to find the right mortgage refinance loan for you

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Checking rates won’t affect credit score

  1. Get prequalified rates in 3 minutes:

    It's quick and painless. Tell us a little bit about you and your home to get accurate prequalified rates without impacting your credit score.

  2. Compare rates from multiple lenders:

    View the interest rate and cost breakdown of each loan to choose the best lender and loan product for you. Need help? Our mortgage team is not commissioned, so they're always on your side.

  3. Upload documents on Credible:

    We take the stress out of refinancing by automating the document collection process, keeping you updated on the status of your application every step of the way.

  4. Finish your loan with us:

    With Credible, you can complete the whole refinance process online. We have a team of dedicated mortgage experts ready to help you if you need it.

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What is a 10-year mortgage refinance?

With a 10-year mortgage refinance, you take out a new loan to pay off the remaining balance on your home loan. Depending on the 10-year mortgage refinance rates and other factors, you might be able to pay off your home faster and pay less in interest overall.

Who should choose a 10-year mortgage refinance?

Depending on your situation, a 10-year mortgage refinance can be an ideal choice if you have sufficient income or cash reserves and are looking to pay off your house sooner.

It’s important to note that a 10-year mortgage refinance is likely to come with a higher monthly payment, so you need to make sure you have enough cash flow to handle it.

PROS

Advantages of a 10-year fixed mortgage refinance rate

When looking at the refinance rates for a 10-year fixed-rate mortgage, consider the advantages:

  1. Much lower interest rate:

    Current 10-year mortgage refinance rates are low — probably lower than your current mortgage rate. Depending on your situation, you might be able to save a significant amount of money by refinancing to a lower rate.

  2. Earlier payoff date:

    If you have 15 or 20 years left on your home loan, taking advantage of refinance rates on a 10-year fixed option could mean an earlier payoff date.

    Instead of paying off your house in two decades, you might be able to pay it off in half the time. This earlier payoff date often means less paid in overall costs. Plus, you get the peace of mind that comes with being debt-free sooner.

Check Out: 

How to Refinance Your Mortgage in 6 Easy Steps

CONS

Disadvantages of a 10-year fixed mortgage refinance rate

Before deciding to get a 10-year fixed-rate mortgage refinance, it’s important to weigh the disadvantages:

  1. Significantly higher monthly payments:

    When you shorten your loan term, you’re paying over a shorter period, so your monthly payment is likely to go up. This is especially true if you refinance from a 30-year loan to a 10-year loan. If you are going to refinance to a shorter term, make sure you consider your cash flow and whether you can afford the higher monthly payments.

  2. Closing costs:

    In many cases, a mortgage refinance comes with closing costs. You might be able to roll these into your loan, but that increases the amount that you’re paying interest on.

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How to get the best rate for a 10-year fixed mortgage refinance

To access the best 10-year mortgage refinance rates, you need to make sure you have a good credit score. Additionally, you need a significant amount of equity in your home to qualify for the best rates.

Don’t forget to shop around, too. Credible can help you compare prequalified mortgage refinance rates and terms quickly and easily. See today’s rates below and get prequalified all without leaving our platform.

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When is the right time to refinance?

With mortgage rates near historic lows, now is a good time to refinance and lock in a low rate. With lower interest rates, you’ll pay less in interest throughout the life of the loan, allowing you to reduce your spending overall.

Additionally, refinancing can be a good choice for someone approaching retirement. You can refinance to a 10-year mortgage to put yourself in position to become debt-free early in retirement, which can help reduce your overall costs.

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Resources

Frequently asked questions about 10-year fixed refinance rates

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By Chris Jennings

As a Credible authority on mortgages, Chris Jennings covers topics including home loans and mortgage refinancing. His work has appeared in Fox Business and GOBankingRates.
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Freddie Mac doesn’t track 10-year refinance rates specifically. In general, though, 10-year refinance rates are slightly lower than refinance rates for 15-year loans.

The average rate for a 15-year loan has run below 3% since the beginning of the COVID-19 pandemic, and 10-year refinance rates have naturally remained just below that threshold.

While 10-year refinance rates are currently in an uptrend, they still remain below their pre-pandemic average.

Assuming you have an excellent credit score (usually 740 or higher) and can qualify for the lowest rates, a good 10-year refinance rate might be around 2.5%. For fair to good credit (600s to low 700s), your rate might be closer to 3%.

Mortgage rates remain near record lows, though, so while you might not receive the best rate with a lower credit score, a 10-year refinance rate at around 3% is still a relatively good rate.

As 10-year refinance rate trends are shifting higher, it’s vital to compare rates from multiple lenders to ensure you’re getting the best possible rate. You can quickly compare personalized rates, monthly payments, and fees with Credible in just a few minutes. Checking your refinance rates and terms with us is free and won’t affect your credit score.

Several economic and personal factors influence your mortgage rates. The 10-year Treasury bond yield is one of the most significant variables as rising yields tend to indicate higher refinance rates.

Other economic factors that can also cause mortgage rates to increase, decrease, or stay the same include the unemployment rate, inflation rate, and general mortgage demand.

While you cannot control every factor that determines current mortgage rates, you can take several steps to qualify for a lower rate:

  • Credit score: Lenders usually require you to have an excellent credit score — 740 or higher in most cases — to be eligible for the best rates. You can still qualify for a competitive rate if your score is in the upper 600s to lower 700s. Find out ways to improve your credit score before applying.

  • Debt-to-income ratio (DTI): An ideal DTI is 36% or less, but you might be able to refinance into a conventional loan with a DTI of 50%.

  • Repayment term: Shorter repayment terms usually have the lowest interest rates. A 10-year loan may offer the best fixed interest rates, while a 30-year loan will usually have the highest.

  • Closing costs: Rolling some of your origination fees into the refinance loan can increase your annual percentage rate (APR).

  • Down payment: Similar to a home purchase, mortgage lenders require a loan-to-value ratio (LTV) below 80% to waive private mortgage insurance (PMI). A lender will typically require you to order a home appraisal to determine that your home value is sufficient.

  • No cash out: A conventional refinance typically has lower rates than a cash-out refinance — but you won’t be able to tap your equity and receive a lump sum of cash.

  • Adjustable rates: You might qualify for a lower rate if you apply for an adjustable rate mortgage (ARM). These typically offer lower initial rates than fixed-rate loans. However, if the rate rises following the fixed introductory period, you’ll still be expected to make those higher payments.

A 10-year and 20-year mortgage can both offer favorable rates and terms. However, you’ll need to consider your own circumstances to come to the best decision.

For example, a 20-year refinance loan will have smaller monthly payments as you’ll have an extra decade to repay the loan. But you’ll also pay a higher interest rate and, in turn, more interest over the life of the loan.

Compare that to a 10-year refinance loan. These loans are lower but require a more substantial monthly payment due to its aggressive repayment schedule. Your lender may require a lower debt-to-income ratio as well to ensure you can afford the higher payments.

Here’s an estimate of what your new monthly payment and total interest savings might look like on a $200,000 loan for a 10-year term vs. a 20-year term.

Repayment term10 Years20 Years
Interest rate (APR)2.526%2.971%
Monthly payment$1,887.76$1,106.29
Total interest cost$26,531.62
($38,978.99 savings)
$65,510.61

This table shows how 10-year refinance rates compare to shorter and longer terms with a $200,000 loan balance ($600,000 for jumbo mortgages).

Repayment termInterest rateMonthly paymentTotal interest cost
30-year fixed 3.120%$856.21$108,234.49
20-year fixed 2.971%$1,106.29$65,510.61
15-year fixed 2.504%$1,333.96$40,111.87
10-year fixed 2.526%$1,887.76$26,531.62
30-year jumbo 3.540%$2,707.68$374,765.82
15-year jumbo 3.688%$4,344.90$182,082.46

In addition to looking for the lowest interest rate, you should also compare your monthly payments. You may want to choose the highest payment that you can comfortably afford to minimize your lifetime interest costs.

However, it’s also important to weigh your other financial priorities. Refinancing to get a lower rate and monthly payment but keeping the same repayment term can be sufficient if you simply want to free up more cash for other expenses.

A 10-year fixed-rate loan differs from a 10/1 ARM. Essentially, you’re comparing a 10-year loan vs. a 30-year loan with different repayment terms.

If you refinance into a 10-year fixed-rate loan, you’ll enjoy the same monthly payment for 10 years and pay off your loan after 120 monthly payments.

Refinancing into a 10/1 ARM, on the other hand, provides a fixed interest rate for the first 120 monthly payments (10 years), before the rate adjusts annually for the remainder of the term (usually 20 years).

10-year fixed-rate loan pros and cons

If you can comfortably afford the higher monthly mortgage payment, refinancing into a 10-year fixed-rate loan might be your best option as a homeowner.

Pros

  • Typically have the lowest rates among all fixed-rate mortgages

  • Lower lifetime interest costs

Cons

  • Higher monthly payment

  • You cannot extend the repayment term

10/1 ARM pros and cons

Refinancing into an ARM can be an excellent option if you intend on selling your house within the first 10 years but want to take advantage of current low rates while you own the property.

Pros

  • Potentially lower initial interest rate (compared to a 30-year fixed-rate loan)

  • Longer fixed-rate period

Cons

  • Interest rates adjust annually after 10 years

  • Your plans to sell or refinance the home may change

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