Yes, 10-year, fixed mortgages usually offer rates that are lower than 30-year mortgages.
A good 10-year mortgage rate is the lowest rate that you can qualify for. Look into what different mortgage lenders advertise and apply to a few lenders of your choice so that you can compare offers and take the best one. Shopping around for a mortgage can save you tens of thousands of dollars.
To qualify for a 10-year mortgage, you must prove you’re able to make the payments. For a conventional mortgage, you also typically need at least a 3% down payment and a 620 credit score. Read about the minimum mortgage requirements for different types of mortgage loans to get a better idea of whether you might qualify.
Lenders determine the mortgage rates they offer by reviewing overall economic conditions as well as your individual financial profile. Overall economic conditions include factors like inflation and the rates set by the Federal Reserve. Personal financial profiles include credit scores and debt-to-income ratios.
Because there is no way to know what rates you’ll be paying once an ARM loan adjusts, comparing a fixed-rate loan to an ARM can be like comparing apples to oranges. One way to do it is to dive into the fine print in your ARM’s loan estimate, because an ARM lender is required to disclose the maximum amount your interest rate can adjust by. Do the math on what your payments would look like at the bottom and top of the range of interest rates you may see