According to a recent Primerates.com survey of Sacramento mortgage rates offered by the largest area banks & credit unions, three Sacramento institutions offered rates above 4.00% on 30-year fixed-rate conforming loans in the Sacramento area for well-qualified borrowers. The River City Bank (www.rcbank.com) offered rates at 3.63%. Wells Fargo (www.wellsfargo.com) and Umpqua Bank (www.umpquabank.com) offered rates at 3.88%. Five other institutions offered rates above 4.00% with the El Dorado (www.eldoradosavingsbank.com) offering rates at 4.75%.
While most lenders will push one of the three products on the list below, there are other options for the borrower. The 30-year fixed rate loan is the most popular since it offers the lowest monthly payment. The trade-off is paying a higher interest rate. For those who have a better cash flow, the 15-year product may be more suitable. The 15-year fixed rate loan will allow the borrower to pay more toward principal with each payment, and since it has a lower interest rate the overall amount of money that is paid in interest will be much lower. While many people steer clear of the 5/1 ARM it is beneficial to some borrowers. For instance, a person with a smaller loan (usually due to refinancing) may have the cash flow to pay off their ARM in 5 years or less. This person could save an extra 1% in interest payments over the 15-year product and never worry about the rate adjusting later in the life of the loan.
Top Sacramento Area Banks and Credit Unions | As of | 30 Yr-Rate | 30 Yr-APR | 15 Yr-Rate | 15 Yr-APR | 5/1 ARM-IR | 5/1 ARM-APR |
Wells Fargo | 04/29/2012 | 3.88% | 4.05% | 3.00% | 3.31% | 2.25% | 3.07% |
U.S. Bank National | 04/29/2012 | 4.00% | 4.06% | 3.38% | 3.48% | 2.63% | 3.55% |
JPMorgan Chase | 04/29/2012 | 4.00% | 4.06% | 3.13% | 3.27% | 2.38% | 3.06% |
Citibank | 04/29/2012 | 4.25% | 4.38% | -99 | -99 | NA | NA |
Bank of the West | 04/29/2012 | 4.00% | 4.06% | 3.13% | 3.23% | 2.50% | 3.05% |
El Dorado | 04/29/2012 | 4.75% | 4.83% | 3.63% | 3.76% | NA | NA |
Umpqua Bank | 04/29/2012 | 3.88% | 4.02% | 3.00% | 3.25% | NA | NA |
River City Bank | 04/29/2012 | 3.63% | 3.73% | 3.00% | 3.19% | NA | NA |
Listed rates from banks, thrifts, and credit unions were listed on their websites on the date indicated for conforming loans with 0 points. Data is believed accurate at time of collection, can change without notice, and will vary based on an individual’s credit history. Contact a specific institution for current rates.