Houston Mortgage Rates Survey – January 9-10, 2012

Written by: Scott Sery

According to a recent Primerates.com survey of Houston mortgage rates offered by the largest area banks & credit unions, many Houston area banks offered rates under 4%.  Wells Fargo (www.wellsfargo.com) offered the lowest rates at 3.75% on 30-year fixed -rate conforming loans in the Houston metro area for well-qualified borrowers.  Sterling Bank (www.banksterling.com) and Comerica Bank (www.comerica.com) were half a percentage point higher with rates of 4.25%.

When shopping for a loan, consider the type of program to be used.  For those who qualify a VA loan offers some excellent benefits including faster loan approval, no down payment, and avoiding Private Mortgage Insurance (PMI).  Even though nearly all VA loans do not require a down payment, with loan origination fees the borrower can end up with an initial loan of about 103% the value of the house.  For those with less than reputable credit, they may qualify for an FHA loan.  These loans will allow a person to put as little as 3.5% down on the house (whereas a conventional loan often requires 20% down).  There are some added fees to an FHA loan, and should only be used when a person’s credit reputation does not allow them to obtain a conventional loan.  Most loans are conventional loans.  Generally they are what people think of when they hear the term “mortgage.”  There is no wrong way to get a loan.  All of the programs were designed to help people get into a house, and choosing one mainly depends on what the borrower can afford.

Top Houston Area Banks and Credit Unions

As of

30-year Fixed

15-year Fixed

5/1 ARM

Wells Fargo

01/10/12

3.75%

3.13%

2.13%

JP Morgan

01/09/12

3.88%

3.25%

2.50%

Compass Bank

01/09/12

3.88%

3.00%

NA

Amegy Bank

01/09/12

3.88%

3.13%

NA

Capital One

01/09/12

4.00%

3.25%

2.88%

Bank of America

01/09/12

4.13%

3.38%

3.00%

Sterling Bank

01/09/12

4.25%

3.34%

2.75%

Comerica Bank

01/09/12

4.25%

3.34%

2.75%

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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Houston Mortgage Rates Survey – January 9-10,...

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