Boston Area Mortgage Rate Survey February 10, 2012

Written by: Scott Sery

According to a recent Primerates.com survey of Boston area mortgage rates offered by the largest area banks & credit unions, most banks in the Boston area had rates that decreased but still hovered around 4%.  Rockland Trust (www.rocklandtrust.com) was just barely under 4% at 3.95%.  RBS Citizens Bank (www.citizensbank.com), Century Bank and Trust (www.centurybank.com), and Danvers Bank (www.danversbank.com) all offered rates of 4%, while Bank of America (www.bankofamerica.com) rounded out the offerings with 4.13% on 30-year fixed -rate conforming loans in the Boston metro area for well-qualified borrowers.

Paying off a mortgage early is one of the best feelings.  It can end up saving thousands, and potentially hundreds of thousands, of dollars in interest payments.  But there are some precautions before trying to pay off the mortgage too quickly.

The biggest thing is to make sure to have a backup plan.  Everyone should have at least 6 months of living expenses in a cash emergency fund.  It is not a question of if, but when, emergencies will happen, and there is no telling when you might be laid off.  Or perhaps some unexpected medical bills, or car troubles will happen.  Regardless of why, extra money is needed.  If all money is tied up in the house, it can be difficult to pay those unexpected bills.  Many financial professionals agree that a person should have even up to 2 years worth of living expenses saved.

Just as important as having the emergency fund is to make sure retirement accounts are fully funded.  There is no point in paying off the house early if it means retirement is going to be a stretch.  This means sitting down and calculating out living expenses, desired retirement living expenses, figuring out how much each month is needed to be saved for retirement, then applying the extra toward the principal on the house.

By taking care of other financial needs first, a person can still get their house paid off much sooner than the 30 year mortgage calls for.

Top Boston Area Banks and Credit Unions

30-year Fixed

15-year Fixed

5/1 ARM

Rockland Trust

3.95%

3.38%

3.13%

Sovereign Bank

3.99%

3.25%

NA

RBS Citizens Bank

4.00%

3.25%

2.63%

Century Bank and Trust

4.00%

3.38%

3.00%

Danvers Bank

4.00%

3.25%

2.88%

Bank of America

4.13%

3.50%

2.88%

Boston Private Bank and Trust

NA

4.13%

3.38%

Listed rates for Boston area mortgage rates come from banks, thrifts and credit union and 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.


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Boston Area Mortgage Rate Survey February 10, 2012

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