Mortgage Rates: Bank of America Remains Low
Bank of America (NYSE:BAC) is among the nation’s top four biggest mortgage lenders. Wells Fargo (NYSE:WFC), CitiMortgage (NYSE:C) and Chase Bank (NYSE:JPM) round out the rest of the list. BoA’s rates are competitive and sometimes ahead of the other lenders. Today the pack is tight with most lenders offering the 30 year fixed rate loan at 4.25%. The Bank of America offering has an APR of 4.432%.
15 year fixed loans at the bank are 3.375% today with a 3.712% APR. Adjustable rate mortgages which have an interest rate that varies as an index interest rate changes start today at 3.125% for the 7 year loan. The 5 year loan is at a low 2.75%.
Refinance mortgages at BoA also remain competitive with 30 year fixed rates at 4.375%, a bit higher than the rate quoted above for home purchase loans. The refinance loan has an APR of 4.589%. 15 year fixed rate refinances at the bank are 3.75% with an APR of 4.103% today which is a slight improvement over yesterday.
ARMs are also available for refinancing and the 7 year ARM is at 3.25% while the 5 year ARM loan is at 3.00% even to start.
While the average rates across the nation are better than they have ever been on an historical basis, it is not often the case that a borrower walks away with the rate quoted in the window. General rate quotes are usually “best available” which means that only the best qualified borrowers are eligible to borrow money at those rates. Not only must borrowers have excellent credit scores, the property purchased must be affordable to the buyer with mortgage contracts yielding a monthly payment that is well within the borrowers where-with-all to make. As a result, most borrowers walk away with interest rates that are a bit higher than those quoted and maybe have to pay more in downpayments to get the rates they would like to have.
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