According to a recent Primerates.com survey of Boston mortgage rates offered by the largest area banks & credit unions, five Boston institutions offered rates below 4.00% on 30-year fixed-rate conforming loans in the Boston area for well-qualified borrowers. The Bank of America (www.bankofamerica.com) offered rates at 3.75%. RBS Citizens (www.citizensbank.com) offered rates at 4.13%.
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 Boston 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 |
| Bank of America | 04/20/2012 | 3.75% | 3.95% | 3.00% | 3.31% | 2.63% | 3.20% |
| RBS Citizens | 04/22/2012 | 4.13% | 4.16% | 3.38% | 3.44% | 2.75% | 3.11% |
| Sovereign Bank | 04/20/2012 | 3.99% | 4.15% | 3.25% | 3.53% | NA | NA |
| Rockland Trust | 04/20/2012 | 3.88% | 3.96% | 3.25% | 3.39% | 2.75% | 3.19% |
| Century Bank and Trust | 04/23/2012 | 3.99% | 4.04% | 3.38% | 3.46% | 3.00% | 2.97% |
| Danversbank | 04/20/2012 | 3.88% | 4.02% | 3.25% | 3.51% | 3.00% | 3.27% |
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.
