10-Year Mortgage Calculator: Calculate Your Monthly Mortgage Payments

Andrea Riquier is a New York-based writer covering mortgages and the housing market for Forbes Advisor. She was previously at Dow Jones MarketWatch, on the housing market and financial markets beats. Before that, she covered macro and central banks for Investor's Business Daily, and municipal bonds for Debtwire.

Andrea Riquier

Andrea RiquierForbes Advisor Staff

Forbes Advisor Staff

Rachel WitkowskiCorrespondent/Editor

Rachel Witkowski is an award-winning journalist whose 20-year career spans a wide range of topics in finance, government regulation and congressional reporting. Ms. Witkowski has spent the last decade in Washington, D.C., reporting for publications including The Wall Street Journal, American Banker and Bankrate. Ms. Witkowski's deep knowledge of government and policy aided a series of investigative stories that triggered congressional hearings on employee claims of discrimination at a federal agency and how indirect auto lenders were being reviewed by regulators.

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Rachel Witkowski

Rachel WitkowskiCorrespondent/Editor

Correspondent/Editor

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Updated: Jul 27, 2022, 11:35am

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Mortgages lasting 10 years are relatively rare, but it might be just the right length of time for you depending on your budget and financial goals. To help you decide, you can estimate how much you might pay for a 10-year mortgage based on key factors like current interest rates, the home price and your down payment.

How to Use the 10-year Mortgage Calculator

This calculator is meant to help you understand how different variables impact your mortgage payment. Those numbers may include the size of your down payment, the interest rate you qualify for, how long you expect to keep the home and so on.

First, your will need to input values for: the home price, down payment, interest rate and loan term (years). For down payment, you can populate either the amount or the percentage, and the calculator will automatically fill in the other field.

Click “calculate” for a breakdown of your monthly payment, as well as an amortization schedule that plots your monthly payments by principal and interest, over time.

You get more granular in your monthly payment estimate by clicking the “additional options” button to add items like property’ insurance costs, mortgage insurance and homeowners association (HOA) fees. Some of those costs will not be built into your mortgage payment, but it’s still wise to consider them as part of your monthly housing budget.

While 30- or 15-year mortgages are far more common, many lenders offer shorter, and sometimes longer, periods of time. Each product will have different benefits and downsides depending on your budget and how quickly you want to pay off the mortgage.

10-year Mortgage: Costs and Requirements

The average national interest rate for a 10-year fixed mortgage was 6.61%. Closing costs for any kind of mortgage can total as much as 3% to 6% of the home’s purchase price.

The paperwork associated with getting a mortgage can be almost as onerous as the costs. It’s important to first get your credit score as strong as possible in order to get the best interest rate offer. But you also have to be prepared to demonstrate in writing that you’re a good credit risk and will make monthly payments on time.

Most lenders require tax returns for the last two years, as well as recent pay stubs or W-2 forms. If you’re self-employed, you’ll need to document your income with 1099s or profit-and-loss statements.

Also be prepared to provide bank statements for checking and savings accounts, retirement and other brokerage accounts for at least the past 60 days.

Lenders may require other things, such as a list of your liabilities. That could include credit card balances or other loans. They may also request canceled rent checks or a letter from your landlord verifying you pay housing expenses on time.

If you’re going to use gifted funds for your down payment, you will need to provide a detailed paper trail showing where that money came from.

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Comparing 10-year Mortgages to Other Loan Terms

While 10-year mortgages are not as common as other home loans, they still have some advantages. Because it’s short, a 10-year mortgage means you will pay off the house much faster. That minimizes the interest you pay, and lets you build equity far more quickly.

However, you will have a much higher monthly mortgage bill because you’re compressing a home loan into such a short period of time compared to the more popular 30-year mortgage.

If you still want to pay off the house sooner but don’t have the income to pay as quickly as a 10-year mortgage requires, you might consider taking the middle ground with a 15- or 20-year mortgage. That gets you a smaller ongoing monthly payment, but the flexibility to pay down more of the mortgage on a monthly or yearly basis as you’re able.

Use the calculator above to see how much you’ll pay every month under each scenario, as well as how quickly you’ll pay off interest over time. One caveat: In certain circumstances, mortgage interest is tax-deductible, which may be a benefit for some people.

How to Find the Best 10-year Mortgage

Before you apply for any mortgage, it’s a good idea to start by getting your credit score in the best shape possible—a process which may take some time. Then, gather your documentation and use our calculator to get a rough estimate of what you can afford.

You should always plan to contact several lenders, even if you start with one with whom you already have a relationship. Another option is to work with a mortgage broker, who will shop around on your behalf.

Frequently Asked Questions (FAQs)

What is the current 10-year mortgage rate?

The current average 10-year mortgage rate is 6.61% compared to 6.69% a week before.

What is a 10-year, fixed-rate mortgage?

A fixed-rate mortgage is a loan whose interest rate remains unchanged throughout its lifespan. When interest rates are very low, fixed-rate mortgages are usually the better option. Even with a shorter mortgage term, like 10 years, financial markets and the economy may change dramatically between the time you take out the loan and when you finish paying it off.

Now that fixed rates are higher, borrowers may also want to consider adjustable-rate mortgages (ARMs), which fluctuate as market conditions change. Those are loans that tend to have a fixed lower interest rate for an initial period of time, usually five or seven years, before switching to an adjustable rate.