Benefit

Getting your mortgage that is fixed for at least 10 years gives you a fixed period for your mortgage without the additional interest rate increase of a 30 year fixed loan.

For most people having their loan fixed for 10 years is more than enough security against interest rate fluctuations.

There are few people who keep a property for more than 10 years. When you sell your property and buy another one, the new mortgage you get will be at interest rates prevailing at that point in time. Your old 30 year fixed rate may not be available at the time, but there is no way to avoid this.

How It Works

A mortgage loan comes with many different components, including:

rates

loan size

loan term

number of years a loan is fixed

A loan can be fixed for a certain amount of time, often for less than the term of the loan.

A loan can have a 30 year term and only be fixed for 2 years. The final 28 years of the loan are adjustable.

Interest Only Option

There are now loans that offer the best of both worlds: long-term interest rate security and a lower initial payment. This loan is a 30 year fixed loan with a 10 year interest only option. This has a rate that does not fluctuate, but the interest only period for the first 10 years allows you to make a lower payment.

To figure out your payments, use our free online mortgage calculators.