The ten year fixed-rate mortgage has generated renewed interest as borrowers look to lock in for the long term and enjoy the security and peace of mind this brings. With rates at an all-time low the ten year fixed rate has never looked so tempting.
After five years there is only a three month interest penalty to get out of the mortgage; currently the lowest penalty available for a fixed rate - much more attractive than facing a much higher interest rate differential penalty.
If one is on a fixed income taking advantage of a longer term fixed rate mortgage can definitely be beneficial. Currently the five-year fixed rate is about 3.19% and the ten year at 3.89%. (These are not the posted rate but the rate for qualified buyers.) If after five years the five year rate has risen to 4.6% or higher you would still be ahead taking the current 10 year at 3.89%. If you are on a fixed income this may be something to consider.