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 4.000%. Wells Fargo Bank (www.wellsfargo.com ) offered 3.875% and Compass Bank (www.bbvacompass.com ) offered 3.750% on 30-year fixed -rate conforming loans in the Denver metro area for well-qualified borrowers. Three other Denver institutions offered rates at 4.000% to 4.250%; U.S. Bank National (www.usbank.com ) offered rates at 4.250%, KeyBank National Association (www.key.com ) offered rates at 4.040% and Bank of the West (www.bankofthewest.com ) offered a 4.000% rate.
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-year Fixed |
15-year Fixed |
5/1 ARM |
Wells Fargo Bank |
02/05/2012 |
3.875% |
3.125% |
2.125% |
U.S. Bank National |
02/05/2012 |
4.250% |
3.500% |
2.875% |
Bank of the West |
02/05/2012 |
4.000% |
3.375% |
2.625% |
KeyBank National Association |
02/05/2012 |
4.040% |
3.375% |
2.625% |
Compass Bank |
02/05/2012 |
3.750% |
2.750% |
2.625% |
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.