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.