According to a recent Primerates.com survey of Denver mortgage rates offered by the largest area banks & credit unions, two Denver institutions offered relatively low interest rates at below 3.875% and 3.750%. Wells Fargo Bank (www.wellsfargo.com ) offered rate at 3.875% and an Annual Percentage Rate of 4.014% while Compass Bank (www.bbvacompass.com) offered a rate at 3.750% and an Annual Percentage Rate of 3.931% on 30-year fixed-rate conforming loans in the Denver metro area for well-qualified borrowers. Four other Denver institutions offered rates at in the range of 4.080% to 4.500%; U.S. Bank National (www.usbank.com ) offered the highest rate at 4.500%, KeyBank National Association (www.key.com) offered rates at 4.080%, Bank of the West (www.bankofthewest.com ) offered a 4.125% rate and the UMB Bank Colorado (www.umb.com) offered rates at 4.080%.
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 Denver 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 |
| Wells Fargo Bank |
02/12/2012 |
3.875% |
4.014% |
3.125% |
3.368% |
2.250% |
3.118% |
| U.S. Bank National |
02/12/2012 |
4.500% |
4.564% |
3.750% |
3.756% |
2.845% |
3.580% |
| Bank of the West |
02/12/2012 |
4.125% |
4.158% |
3.375% |
3.432% |
3.000% |
3.276% |
| KeyBank National Association |
02/12/2012 |
4.080% |
4.135% |
3.440% |
3.538% |
2.750% |
3.211% |
| Compass Bank |
02/12/2012 |
3.750% |
3.931% |
2.875% |
3.137% |
2.625% |
3.248% |
| UMB Bank Colorado |
02/12/2012 |
4.080% |
4.199% |
3.350% |
3.559% |
2.875% |
3.314% |
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.
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