Today’s 10-Year Refinance Rates

Here’s a look at today’s 10-year refinance rates:

How we source rates and rate trends

Thinking about refinancing your mortgage and paying off your home faster? You’re not alone. Many homeowners are turning to 10-year refinances as a way to ditch long-term debt, save significantly on interest, and build equity faster.

Get your personal rate estimate here. 

Why Consider a 10-Year Refinance?

A 10-year refinance is a smart option for homeowners who want to take on higher monthly payments in exchange for paying off their mortgage faster and saving significantly on interest. By shortening your loan term, you can own your home outright sooner and reduce what you pay in financing costs over time.

It’s also a strong choice if you already have around 10 years left on your mortgage. In that case, refinancing into a new 10-year loan helps you stay on track while taking advantage of lower interest rates, a lower payment, or both.

Compare 10-Year Refinance Rates

Before committing to a refinance, it helps to see how 10-year terms compare with other options. The term you choose affects your monthly payment, total interest, and how quickly you build equity.

How we source rates and rate trends

Lenders often reward shorter loan terms with lower interest rates. A 10-year refinance often comes with a meaningfully better rate than a 20- or 30-year loan.

Refinance Rate Comparison Example

Here’s an example of how much shorter loan terms affect payments and lifetime interest using an example $300,000 loan at 6.5%.

Refinance Term	Example Interest Rate	Monthly P&I Payment	Total Interest Paid
10-Year	6.5%	$3,406	$108,773
20-Year	6.5%	$2,237	$236,813
30-Year	6.5%	$1,896	$382,633

Note: For example purposes only. Not a commitment to lend. Monthly P&I Payments are rounded to the nearest dollar and only include principal and interest. For a personal refinance rate estimate, get started here.

Compared to a 20-year refinance, the 10-year option comes with higher monthly payments but saves about $128,000 in lifetime interest. Against a 30-year loan, the savings are even greater, though monthly payments can nearly double.

Closing Costs and Breakeven Point

Like any refinance, a 10-year loan comes with closing costs, which are usually between 2% and 5% of the loan amount. On a $300,000 refinance, that could mean $6,000–$15,000 upfront.

Because a 10-year loan is shorter, you’ll have less time to spread those costs out. That makes your breakeven point—the time it takes for savings to outweigh what you spent—especially important. If you expect to sell your home or refinance again within a few years, you may not save enough to make the costs worthwhile.

Check out our refinance break-even calculator to run your numbers. 

Who Should Consider a 10-Year Refinance?

A 10-year refinance makes sense in several situations:

• Peak earning years: Higher income can comfortably cover the larger monthly payment.
• Near retirement: Paying off your home before retiring provides financial peace of mind.
• After a windfall: A salary increase, inheritance, or bonus makes higher payments manageable.
• Consistent overpayments: If you’ve been paying extra already, refinancing into a structured 10-year term at a lower rate adds predictability.
• You’ve only got around 10 years left on your original mortgage: If you’ve had your mortgage a while (e.g., 8–10 years left), refinancing into another 10-year loan won’t speed up your payoff—it just helps you lower costs or reset your structure. In some cases, refinancing can even extend your payoff timeline if you add years back to the clock.

Pros of a 10-Year Refinance

Build Equity Faster and Unlock More Options

With a shorter term, a bigger share of each payment goes toward principal instead of interest. That means you gain home equity at a much faster pace. More equity gives you flexibility: you can sell your home with more profit, qualify more easily for another refinance in the future, or even tap equity with a HELOC or home equity loan if needed.

Related: How Much Equity Do You Need to Refinance Your Mortgage?

Take Advantage of Lower Interest Rates

As shown above, shorter loan terms often have lower interest rates than their longer-term alternatives. Even a small drop—say half a percentage point—on a six-figure loan can save thousands of dollars over time.

Pay Less Over the Life of Your Loan

Lower rates are just part of the story. Even if interest rates were identical across loan terms, you’d still save significantly by paying interest for fewer years. A 30-year loan can cost more in interest than the original amount you borrowed, while a 10-year refinance dramatically reduces that total.

Homeowners who can afford the higher monthly payments often save tens of thousands in interest, leaving more money for retirement, investments, or other financial goals.

Cons of a 10-Year Refinance

Higher Monthly Payments Require a Strong Budget

The biggest drawback is affordability. A 10-year refinance may double your monthly payment compared to a 30-year term. If you move from $1,200 a month to $2,400, you’ll need a stable income and confidence that you can sustain it over time.

Less Flexibility for Other Financial Goals

Locking more of your budget into a mortgage leaves less room for other priorities—like contributing to retirement accounts, building an emergency fund, or investing in opportunities with potentially higher returns. If flexibility matters more than faster payoff, a 15- or 20-year refinance may strike a better balance.

Tougher Qualification Standards

Because of the higher payment, lenders scrutinize 10-year refinance applicants more closely. You’ll generally need strong credit (700+), a low debt-to-income ratio, and at least 20% equity. If you’re not there yet, it may make sense to either wait or choose a longer loan term.

Keep in mind that this varies by lender. 

Prepayment Flexibility on Longer Loans

If you like the idea of paying off your home faster but aren’t sure you can commit to the higher monthly payment of a 10-year refinance, paying extra each month on a longer loan term may offer a middle ground.

For example, refinancing into a 15– or 20-year loan gives you smaller required payments, but you can still make extra principal payments to accelerate your payoff. Most lenders allow this without prepayment penalties. This approach gives you flexibility: if your budget allows, you can pay like it’s a 10-year loan—but if money gets tight, you can always fall back to the lower minimum payment.

Read more in our guide, where we break down refinancing vs. paying extra principal. 

How to Qualify for a 10-Year Mortgage

Qualifying for a 10-year refinance can be more challenging than qualifying for a longer-term loan. Because the payments are typically higher, lenders want to be sure you can handle the increased monthly obligation.

That said, higher payments aren’t always the case. If you already have around 10 years left on your mortgage and are simply refinancing to lower your rate, your payment may actually stay the same—or even decrease. In those cases, the lender’s scrutiny may not feel any different from that of a longer-term refinance.

Here’s what lenders usually look for:

Strong Credit Score

A credit score of at least 700 is often needed to secure the best 10-year refinance rates. Higher credit reassures lenders that you’re a low-risk borrower, which can help offset concerns about the bigger monthly payment.

Manageable Debt-to-Income (DTI) Ratio

Lenders typically want your DTI below 43%, though lower is always better. A smaller DTI shows that even with the higher mortgage payment, you’ll still have room in your budget for other debts and living expenses.

Steady, Verifiable Income

You’ll need to provide proof of stable income through W-2s, tax returns, or pay stubs. If you’re self-employed, lenders usually require at least two years of consistent earnings. Reliable income demonstrates you can keep up with larger payments month after month.

Solid Home Equity

At least 20% equity is usually required for a 10-year refinance. This not only helps you avoid private mortgage insurance (PMI) but also signals to the lender that you have a strong ownership stake in the home. More equity = less risk for them.

Consistent Employment History

Two or more years in the same job or industry is ideal. It signals career stability, which makes lenders more confident you’ll continue to afford the higher monthly payment.

Tips to Strengthen Your Application

Even if you’re not a perfect candidate yet, there are ways to improve your odds:

• Pay down high-interest debt to lower your DTI.
• Check your credit report for errors and dispute inaccuracies.
• Save for closing costs (2–5% of your loan amount).
• Shop multiple lenders to compare rates and terms.
• Consider applying with a co-borrower to boost your financial profile.

Ready to Take the Next Step?

A 10-year refinance can be a powerful tool, but it’s not one-size-fits-all. It works best if you want to eliminate debt quickly, save on interest, or lock in favorable rates. But if you’re already deep into your mortgage, the benefit is less about paying off sooner and more about lowering costs. And for many households, a 15- or 20-year refinance may strike a better balance between savings and affordability.

Start your refinance journey today with Refi.com.