According to a recent Primerates.com survey of Los Angeles mortgage rates offered by the largest area banks & credit unions, four Los Angeles institution offered rates below 4.00% on 30-year fixed-rate conforming loans in the Los Angeles area for well-qualified borrowers. Wells Fargo (www.wellsfargo.com) and Onewest Bank (www.owb.com) offered the lowest rates in the US with 3.75%. JP Morgan Chase (www.jpmorganchase.com) and Cathay Bank (www.cathaybank.com) offered rates at 3.88%. Four other institutions offered rates above 4.00% with the CityBank (www.citibank.com) offering one of the highest rates in the country with 4.38%.
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 Los Angeles 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 |
| Bank of America | 03/09/2012 | 4.13% | 4.29% | 3.38% | 3.72% | 2.63% | 3.21% |
| Wells Fargo | 03/09/2012 | 3.75% | 3.92% | 3.13% | 3.42% | 2.13% | 3.02% |
| JP Morgan Chase | 03/11/2012 | 3.88% | 3.98% | 3.13% | 3.25% | 2.50% | 3.10% |
| Citibank | 03/12/2012 | 4.38% | 4.58% | 3.75% | 4.02% | NA | NA |
| Onewest Bank | 03/09/2012 | 3.75% | 3.98% | 3.25% | 3.38% | 2.88% | 3.22% |
| U S Bank National | 03/08/2012 | 4.25% | 4.31% | 3.50% | 3.61% | 2.88% | 3.50% |
| Cathay Bank | 03/09/2012 | 3.88% | 3.89% | 3.00% | 3.02% | 2.63% | 2.64% |
| Comerica Bank | 03/09/2012 | 4.17% | 4.22% | 3.35% | 3.45% | 3.00% | 3.22% |
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.
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