According to a recent Primerates.com survey of Detroit mortgage rates offered by the largest area banks & credit unions, two Detroit institutions offered rates at about 4.000% on 30-year fixed -rate conforming loans in the Detroit metro area for well-qualified borrowers. Comerica Bank (www.comerica.com) offered the highest rate with 4.250% while the RBS Citizens (www.citizensbank.com) offered rates at 4.000%.
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 Detroit Area Banks and Credit Unions |
As of |
30-year Fixed |
15-year Fixed |
5/1 ARM |
Comerica Bank |
02/05/2012 |
4.250% |
3.375% |
2.875% |
RBS Citizens | 02/05/2012 |
4.000% |
NA |
2.750% |
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.