In general, seven main factors affect your interest rate:
Your credit score.A higher score typically equals a lower rate.
Your down payment. A higher down payment usually means a lower rate.
Your loan amount. Lower loan amounts often come with higher rates.
Your home’s location. Lender rates vary based on the state you live in.
Your occupancy plans. You’ll pay a lower rate, in most cases, for a home used as your primary residence.
Your ability to pay mortgage points. If you have extra money to pay mortgage points, you could lower your rate.
The economy. A strong or weak economy, Federal Reserve policies, inflation expectations and bond yields may impact the rate you’re offered
How to get a 10-year mortgage
You’ll typically take the following four steps to get a 10-year mortgage:
Shop different lenders. Not all lenders may offer 10-year fixed loans, so you may need to try online comparison sites, call mortgage banks and mortgage brokers in your area or check with your local lender
Gather your paperwork. Once you’ve reviewed loan estimates and picked the best deal, have your paystubs, W-2 forms and bank statements handy in case the lender needs them.
Lock your rate. Ask for a rate lock to protect your rate from any potential changes before your closing.
Provide documents as needed. Look out for additional documentation requests. Lenders typically order an appraisal to verify your home’s value and a title search for any claims against your home.
Review the figures and close. You’ll receive a closing disclosure three business days before closing. If the numbers look good, sign your closing papers, and you’re all done.
FAQs about 10-year mortgages
Try an online comparison rate tool, call local mortgage companies or contact a bank or credit union in your area.
If you can afford the higher payment and want to be mortgage-free in the shortest time possible, a 10-year, fixed-rate loan probably makes sense.
The best mortgage for you leaves enough room in your budget for other expenses, as well as savings and retirement goals.