Houston Mortgage Rates Survey – Week of July 23, 2012

Written by: BetterFinancePath Staff

According to a recent Primerates.com survey of Houston mortgage rates offered by the largest area banks & credit unions, seven Houston institutions offered rates below 4.00% on 30-year fixed-rate conforming loans in the Houston area for well-qualified borrowers. Compass Bank (www.bbvacompass.com) offered rates at 3.25%. JP Morgan Chase (www.jpmorganchase.com), Wells Fargo (www.wellsfargo.com), Bank of America (www.bankofamerica.com) and Capital One (www.capitalone.com) offered rates at 3.50%. Comerica Bank (www.comerica.com) offered rates at 3.71%.

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 Houston 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
JP Morgan Chase 07/23/2012 3.50% 3.55% 2.75% 2.91% 2.38% 3.07%
Wells Fargo 07/22/2012 3.50% 3.66% 2.50% 2.79% 2.25% 3.15%
Bank of America 07/20/2012 3.50% 3.67% 2.88% 3.15% 2.50% 3.23%
Compass Bank 07/20/2012 3.25% 3.41% 2.75% 2.99% 2.38% 3.16%
Sterling Bank 07/20/2012 3.71% 3.77% 2.88% 2.98% 2.69% 3.20%
Capital One 07/20/2012 3.50% 3.58% 2.75% 2.87% 2.38% 2.42%
Comerica Bank 07/20/2012 3.71% 3.77% 2.88% 2.98% 2.69% 3.20%


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.


Houston Mortgage Rates Survey – Week of July...

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