According to a recent Primerates.com survey of Chicago mortgage rates offered by the largest area banks & credit unions, two Chicago institutions offered rates at 4.00% on 30-year fixed-rate conforming loans in the Chicago area for well-qualified borrowers. The JP Morgan Chase (www.jpmorganchase.com) offered 3.88% and the Fifth Third Bank (www.53.com) offered rates at 3.99%. The PNC Bank National (www.pnc.com) offered rates at 4.00% while four other institutions offered rates above 4.00%.
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 Chicago Area Banks and Credit Unions||As of||30 Yr-Rate||30 Yr- APR||15 Yr- Rate||15 Yr- APR||5/1 ARM-IR
|JP Morgan Chase||04/06/2012||3.88%||3.98%||3.00%||3.16%||2.38%||3.05%|
|PNC Bank National||04/06/2012||4.00%||3.98%||3.13%||3.15%||NA||NA|
|Fifth Third Bank||04/07/2012||3.99%||4.05%||3.13%||3.21%||2.50%||2.61%|
|First Midwest Bank||04/05/2012||4.13%||4.22%||3.38%||3.54%||3.38%||3.47%|
|U S Bank National||04/06/2012||4.13%||4.19%||3.38%||3.48%||2.75%||3.46%|
|RBS Citizens National||04/06/2012||4.13%||4.16%||3.38%||3.44%||2.88%||3.16%|
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.