10-year mortgage rates: What to expect in 2025

When you get a mortgage, you need to choose the repayment term, which is how long it will take for you to pay off the loan by following the minimum payment schedule. A 10-year mortgage is one that you’ll pay off after 10 years.

While 10-year mortgages get you out of debt quickly, there are some drawbacks to keep in mind, like higher monthly payments. We’ll break down what you need to know to see if a 10-year loan is right for you.

What is a 10-year mortgage rate?

A mortgage’s interest rate is the cost of borrowing money. It describes how much interest accrues on your loan. A 10-year mortgage rate is the interest rate for a 10-year loan and is usually fixed for the life of the loan.

The shorter a mortgage’s term, the lower its interest rate. Shorter loans also leave less time for interest to accrue, so 10-year mortgages usually have lower interest paid over time than longer loans because of the way mortgage interest works. Reducing the total cost of your loan can free up money that you can use for other financial goals.

However, the monthly payments required are higher because you need to pay more principal with each payment.

What factors determine your 10-year fixed mortgage rate?

Lenders generally base the interest rate of a loan on the perceived risk of that loan. If a lender thinks someone is less likely to pay their debt, they’ll charge a higher rate to compensate. On the other hand, if someone is very likely to make their loan payments on time, the rate will typically be lower.

Some factors influencing your 10-year mortgage rate include:

• Credit score: Higher credit scores mean less risk for the lender, so a good score can lower your rate.
• Down payment: A larger down payment means more equity in your home and reduces the amount the lender has to lend you, so it reduces risk and therefore the interest rate of your loan.
• Loan-to-value (LTV) ratio: This is the percentage of your home’s value you’re borrowing. If the home is worth $400,000 and you borrow $320,000, your LTV ratio is ($320,000 / $400,000 = 80%). Loans with lower LTV ratios usually have lower rates.
• Market factors: Rates also depend on the wider economy and market factors. If the Federal Reserve raises or lowers the federal funds rate, mortgage rates will rise or fall too.

Current 10-year mortgage rates

10-year mortgages are less common than 30-year or 15-year mortgages, so there is less data about typical rates for 10-year loans.

According to Federal Reserve data, as of August 21, 2025, the average 30-year rate is 6.58% and the average 15-year rate is 5.69%, so it’s likely that a 10-year mortgage to have an even lower rate than 5.69%.

Some mortgage experts believe rates are likely to fall in the coming year, so rates could get even lower if you’re able to wait before applying for a loan.

Can you expect lower 10-year mortgage rates in 2025?

No one can predict the future of 10-year mortgage rates or mortgage rates overall. Some mortgage experts believe that interest rates may be likely to fall in the coming months. The Fed did cut interest rates in September 2025.

Fannie Mae usually uses the 30-year mortgage rate to predict trends in mortgages, and it expects that rates may fall. It usually uses the yield on 10-year Treasury notes, a medium-term debt security issued by the U.S. government that investors can buy directly or through a brokerage account, to make mortgage rate predictions.

Since rates for shorter-term loans are usually lower than for 30-year mortgages, it follows that 10-year mortgages might see loan rates drop. Again, no one can say for certain where mortgage rates will land.

Trends in mortgage rates

The past five years have seen a lot of volatility in the mortgage market. In the aftermath of the Covid-19 pandemic, rates on 30-year loans were as low as 3% or lower. As the pandemic eased and inflation spiked, rates jumped to about 7% and have hovered between 6% and 8% since roughly January of 2023. You can see current rates for 30-year loans here.

How to get the best 10-year mortgage rate

10-year mortgages have seen similar rises and volatility in interest rates over the past five years. Mortgage rates vary based on many factors. Some are out of your control, but there are steps you can take to land a better rate.

Improve your finances

Lenders set interest rates based on the perceived risk of the loan. The more you can do to convince lenders that you’re a safe bet and will have no problems paying back your mortgage, the better the interest rate offered will be.

When you apply for a loan, lenders will do a close examination of both your financial situation and your credit history. You want to show them that you have a strong level of income and a solid employment history to get the best deal. You should also take steps to boost your credit score.

Some ways to improve your credit include:

• Pay your bills on time: This includes credit cards, utilities, and loans. Timely payments help build a positive payment history, which is a major factor in credit scoring.
• Lower your overall debt: Focus on high-interest credit card balances, which improves your credit utilization ratio and overall credit score. 
• Limit the number of new credit applications: This minimizes hard inquiries on your credit report, which can temporarily lower your score.
• Regularly review your credit report: Look out for inaccuracies. Dispute any errors to prevent unwarranted negative impacts on your credit score.
• Keep older accounts open: Keep them open even if they are not actively used. Doing so can contribute positively to the length of your credit history, benefiting your overall score.

Boosting your credit can take some time, but it is something that’s very achievable if you try and it will pay big dividends in the long run.

Make a large down payment

A large down payment will help you reduce the cost of your loan in a few ways.

For one, the more money you put down upfront, the less money the lender has to lend to you. That limits the lender’s risk and can reduce your loan’s interest rate. That smaller loan amount also means that less interest accrues, and you have to make smaller principal payments each month.

You’ll also have more equity in the property, so if values fall, you have more breathing room before you’re underwater on the home. That also reduces the lender’s risk and makes you a more attractive borrower.

Finally, making a sufficient down payment, usually 20%, can help you avoid having to pay for private mortgage insurance (PMI). Avoiding that additional cost will make your loan more affordable.

Compare lenders and options

Whenever you’re making a big financial decision, you should take the time to shop around. Each lender is different and will give you different quotes for mortgage fees and interest rates. If you get a few offers, you may be able to find a great deal.

Keep in mind that interest rates are just one thing to look at. When choosing a mortgage lender, consider the fees each lender charges, as well as non-numerical factors, such as how easy the lender is to work with, how good they are at communicating, customer reviews, and the like.

Should you get a 10-year fixed mortgage?

10-year mortgages have a lot of perks, including being cheaper overall and having a faster payoff, but it’s also important to consider their downsides. For example, higher payments mean less financial flexibility.

Keep these pros and cons in mind when deciding if a 10-year fixed loan is right for you.

10-year mortgage pros

Some of the benefits of 10-year mortgages include:

• Accelerated homeownership: You own your home outright in just 10 years, freeing up your finances sooner.
• Lower total interest: You pay significantly less interest over the life of the loan compared to longer-term mortgages.
• Faster equity building: Higher monthly payments contribute more toward principal, increasing your home equity quickly.
• Potential for lower interest rates: 10-year fixed mortgages often come with lower interest rates than 15- or 30-year loans.
• Financial stability: Fixed monthly payments provide predictability and help with budgeting.

10-year mortgage cons

Before committing to a 10-year mortgage, you also need to consider the downsides.

• Higher monthly payments: The shorter loan term results in significantly larger monthly payments compared to longer-term mortgages.
• Reduced financial flexibility: Higher payments may strain your budget and limit your ability to save for other goals or handle unexpected expenses.
• Qualification challenges: The increased monthly payment amount may make it harder to qualify for the loan, especially for those with lower incomes.
• Opportunity cost: Borrowers can invest the money allocated to higher mortgage payments elsewhere, potentially yielding higher returns.
• Potential for overextending: Committing to high payments might lead to financial stress if your income decreases or expenses rise unexpectedly.

Locking in your 10-year mortgage rate

When you get preapproved for a mortgage, lenders will give you a quote with the amount you can borrow and the interest rate they will charge. However, it may take time for you to find a house you want to buy, make an offer, and make it to closing. During that time, interest rates can fluctuate significantly, making the home less affordable.

Many lenders will let you lock in the offered rate for a period of time, such as 30 or 90 days. The rate lock may be free or may come at a fee, but locking in a good rate can help give you peace of mind while you make offers on homes.

Keep in mind that if you think rates may fall, you might prefer not to lock in your rate in hopes that your loan will become cheaper. Consider talking with your lender for personalized advice for your situation.

Alternatives to a 10-year fixed-rate mortgage

A 10-year fixed-rate mortgage can be a good choice if you’re looking to save money on interest, but it’s not the only option. Consider these other types of home loans.

• 10/1 adjustable-rate mortgage: Adjustable-rate mortgages (ARMs) have interest rates that are set for an initial period, then change based on the rate market. Usually, the intro rate is lower than the rate on fixed-rate loans. With a 10/1 ARM, the rate is fixed for ten years, then adjusts annually over the remaining term of the loan.
• 15-year mortgage: 15-year fixed-rate mortgages offer a middle ground between a 10-year and 30-year mortgage. It offers a lower interest rate but a higher monthly payment than a 30-year loan, but not quite as high a payment as a 10-year loan, so it may be more manageable.
• 30-year fixed-rate mortgage: These longer loans have lower monthly payments because they split your payments over a longer period. However, their mortgage rates are higher than other loan types, and they leave more time for interest to accrue, so they cost more in the long run. You can check current 30-year mortgage rates here.
• Government-backed mortgage: There are some specialized government loan programs, such as FHA loans, USDA loans, and VA loans, that are supported by the government to help people afford to buy homes. These may have perks like lower down payments and easier underwriting to make homeownership more accessible.

The bottom line

A 10-year mortgage is one of the shortest-term home loans out there. While payments are high, they may offer lower interest rates when compared to longer-term loans, making them cheaper in the long run. If you can afford to make the high monthly payments and give up the financial flexibility in your monthly budget, this loan can be an appealing option.

If you’re considering a mortgage, you reach out to Rocket Mortgage® to see what you qualify for.