Shared from our friends at Yahoo! Homes, this article is about the little-known mortgage that could save you big!

10-year, fixed-rate mortgages may be little known, but here are four money-saving reasons you may want to learn about them.

1. The Interest Rate on a 10-Year Loan is Much Lower (Compared to a 30-Year Loan)

If
you’re like most people, you refinance your mortgage for one main
reason: to save money. So understandably, people usually focus on how
their new interest rate will affect their monthly payment.

So,
how much can you save in interest with a 10-year vs. a 30-year loan?
Look at the average interest rates from August 13, 2013 according to PNC
Bank. This compares a 30-year at a rate of 4.375 percent, with a
10-year at a rate of 3.125 percent, for a loan amount of $300,000.

That’s pretty evident! If you can afford the higher monthly payment, you’ll save almost a whopping $190,000 over the life of the loan!

2. Refinancing to a 10-Year Loan Won’t Reset the Clock

Traditional wisdom says that if you’ve got fewer than 20 or 15 years left on your 30-year mortgage, refinancing probably should be avoided. That’s because refinancing to another 30-year mortgage resets the clock on your mortgage.

But, refinancing to a 10-year mortgage with a low interest rate could turn that logic on its head, says Duffy. That’s because most people who only have 15 or so years left on their mortgage probably have an interest rate much higher than today’s historically low rates, he says. Why? Interest rates were a lot higher 15 years ago, and homeowners who haven’t refinanced at all could still be stuck with these high rates.

For example, the interest rate for a 30-year, fixed-rate mortgage in January of 1995 was 9.15 percent, according to the Federal Reserve Board. Duffy says he recently helped a couple who only had 12 years left on their mortgage refinance to a 10-year mortgage.

“They initially had an interest rate of over 7 percent. They refinanced to a 10-year mortgage at a little over 3 percent,” which saved them tens of thousands of dollars, he says. “So it was a terrific move.”

3. You Can Build Equity Faster with a 10-Year Loan

How can this help? By refinancing to a 10-year mortgage, you can build equity faster, and own enough of your home so that it’s not underwater anymore when it comes time to sell. “I’ve done several 10-year loans for people who want to move in three years and the best way they can see to do it is to budget every month and pay that principal down quickly, so they do a 10-year fixed,” says Duffy.

4 – A 10-Year Loan Allows for a Stress-Free Retirement

The 10-year mortgage may be the right move if you’re nearing retirement.

Here’s why: For many people, their monthly mortgage payment is their biggest expense. Of course, when you’re working, that may not be a big deal. But what about when you retire and you start seeing a lot less income?  That payment could become quite a burden, making your sunset years not quite as sunny. Worse, it could force you to sell your home, or put off retirement. Duffy says that these are two major reasons he’s done many 10-year refinances.