According to a recent Primerates.com survey of St. Louis mortgage rates offered by the largest area banks & credit unions, four St. Louis institutions offered rates below 4.00% on 30-year fixed-rate conforming loans in the St. Louis area for well-qualified borrowers. The Commerce Bank (www.commercebank.com) and PNC Bank (www.pnc.com) offered rates at 3.75%. UMB Bank (www.umb.com) offered rates at 3.92%. Two other institutions, namely the M&I Marshall and Ilsley Bank (www.mibank.com) and Reliance Bank (www.reliancebankstl.com) offered rates at 4.00%.
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 St. Louis 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|
|M&I Marshall and Ilsley Bank||5/21/2012||4.00%||4.03%||3.25%||3.31%||2.63%||2.95%|
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.