Looking for the sweet spot of the mortgage market? Shorter-term mortgage loans are growing in popularity.

10-year mortgages are getting some real mojo in the marketplace. They now represent one fifth of the entire mortgage market. The key demographic for 10-year mortgages are the Baby Boomers who are refinancing into these shorter-term loans.

What kind of interest rates can you get? As of this writing, 10-year mortgages can have rates of 2.375% up to as much as 3% at the high end. Compare that to 30-year refinances in the 4% range.

15-year loans are another great mortgage option. They're now enjoying the largest historical spread -- right around a full interest rate point -- versus traditional 30-year notes.

I've long said if you can't afford the car payments on a 42-month car loan, you're buying too much car. Well, I'm now this close to saying if you can't afford the mortgage payment on a 15-year loan, you're possibly buying more home than you can afford. It's just something to think about.

On the refinance side, the 10-year notes are compelling because they start at 2.375%. With rates that low, you're paying at roughly the rate of inflation -- meaning you're borrowing money for free!

If you're looking for a 10-year mortgage, go to a local bank or credit union. They specialize in these loans and tend to keep them in portfolio for the life of the loan, making the whole process a lot easier.

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Image of Clark Howard About the author: Clark Howard

Clark Howard is a consumer expert whose goal is to help you keep more of the money you make. His national radio show and website show you ways to save more, spend less and avoid getting ripped off. View More Articles

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