According to a recent Primerates.com survey of Chicago mortgage rates offered by the largest area banks & credit unions, most of the Chicago area banks offered rates in the low 4% range. Harris National (www.harrisbank.com) had the lowest rate of 3.88% on 30-year fixed -rate conforming loans in the Chicago metro area for well-qualified borrowers. The highest rate offered came from Citibank (www.citibank.com) only slightly higher at 4.25%.
When getting approved for a loan, lenders look at two different types of debt. They will look at a person’s front-end debt ratio first. When calculating out the monthly payments needed for a loan, lenders do not like the principal, interest, taxes and insurance (PITI) to be more than 28% of a person’s income. So for someone who makes $1,000 per month, they may have trouble getting a loan where the total payment is over $280 per month. Lenders will also look at the debt-to-income ratio. Debt-to-income includes all payments on debt such as car loans, credit cards, etc. This should not be higher than 36%. Many lenders are flexible with their numbers. Someone with an outstanding credit score may be able to get a loan for higher than 28% because they have proven they are able to make their payments on time.
|
Top Chicago Area Banks and Credit Unions |
As of |
30-year Fixed |
15-year Fixed |
5/1 ARM |
| Harris National |
01/09/12 |
3.88% |
3.38% |
3.00% |
| US Bank National |
01/09/12 |
3.95% |
3.38% |
2.63% |
| Fifth Third |
01/09/12 |
3.99% |
3.25% |
2.75% |
| JP Morgan Chase |
01/09/12 |
4.00% |
3.25% |
2.63% |
| PNC Bank National |
01/06/12 |
4.00% |
3.25% |
NA |
| Bank of America |
01/06/12 |
4.13% |
3.50% |
3.00% |
| MB Financial |
01/09/12 |
4.13% |
3.50% |
3.88% |
| RBS Citizens National |
01/09/12 |
4.13% |
3.38% |
2.75% |
| Citibank |
01/09/12 |
4.25% |
3.50% |
NA |
| First Midwest Bank |
01/09/12 |
NA |
5.50% |
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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