According to a recent Primerates.com survey of Boston mortgage rates offered by the largest area banks & credit unions, six Boston institutions offered rates below 4.00% on 30-year fixed-rate conforming loans in the Boston area for well-qualified borrowers. Bank of America (www.bankofamerica.com) and Rockland Trust (www.rocklandtrust.com) offered rates at 3.50% while the Sovereign Bank (www.sovereignbank.com) and Century Bank and Trust (www.centurybank.com) offered rates at 3.63%. Danversbank (www.danversbank.com) offered rates at 3.75% and the RBS Citizens (www.citizensbank.com) offered rates at 3.88%.
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 | 08/10/2012 | 3.50% | 3.65% | 2.75% | 3.03% | 2.38% | 3.11% |
RBS Citizens | 08/10/2012 | 3.88% | 3.91% | 3.00% | 3.06% | 2.63% | 3.07% |
Sovereign Bank | 08/10/2012 | 3.63% | 3.78% | 2.99% | 3.27% | NA | NA |
Rockland Trust | 08/10/2012 | 3.50% | 3.56% | 2.88% | 2.99% | 2.75% | 3.25% |
Century Bank and Trust | 08/10/2012 | 3.63% | 3.67% | 2.99% | 3.08% | 2.88% | 2.92% |
Danversbank | 08/10/2012 | 3.75% | 3.90% | 3.00% | 3.25% | 2.75% | 3.19% |
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.