Mortgage

Boston Mortgage Rates Survey – Week of January 20, 2012

According to a recent Primerates.com survey of Boston mortgage rates offered by the largest area banks & credit unions, most banks in the Boston area offered rates around 4%.  Sovereign Bank (www.sovereignbank.com) was just barely under 4% at 3.99%.  Rockland Trust (www.rocklandtrust.com), and Century Bank and Trust (www.centurybank.com) both offered rates of 4%, while Bank of America (www.bankofamerica.com) rounded out the offerings with 4.25% on 30-year fixed -rate conforming loans in the Boston metro area for well-qualified borrowers.

While most people will refinance their loan because they want to save money on their interest payments each month, that can mean reducing the term of the loan.  Refinancing from a 30-year mortgage to a 15-year mortgage may in fact increase the amount paid each month, but the length is cut in half.  Not only will a person be paying less in interest, they will also be paying for a shorter period of time.  But it should be kept in mind that on a 30-year loan there are almost no lenders that charge penalties for early repayment.  So instead of switching to a 15-year product, and creating higher required monthly payments, the borrower can keep the 30-year product and simply pay more toward principal every month.  There is no product that is the right product for everyone, and each person must take his or her own earnings and future earnings into consideration when crunching the numbers to decide how they want to refinance.

Top Boston Area Banks and Credit Unions

As of

30-year Fixed

15-year Fixed

5/1 ARM

Sovereign Bank

01/20/12

3.99%

3.25%

NA

Rockland Trust

01/20/12

4.00%

3.38%

3.00%

Century Bank and Trust

01/20/12

4.00%

3.38%

3.00%

RBS Citizens

01/20/12

4.13%

3.38%

2.75%

Danvers Bank

01/20/12

4.13%

3.38%

3.00%

Bank of America

01/20/12

4.25%

3.50%

3.13%

Boston Private Bank and Trust

01/20/12

NA

4.13%

3.38%

 

Listed rates from banks, thrifts and credit union 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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