According to a recent Primerates.com survey of Minneapolis mortgage rates offered by the largest area banks & credit unions, two Minneapolis institutions offered rates at 3.875% on 30-year fixed-rate conforming loans in the Minneapolis metro area for well-qualified borrowers. Wells Fargo Bank (www.wellsfargo.com) and M&I Marshall and Ilsley Bank (www.mibank.com) offered this rate. While most banks were offering rates right around 4%, U.S. Bank National remained at the top with some of the highest in the nation at 4.250%
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 Minneapolis Area Banks and Credit Unions||As of||30-year Fixed||15-year Fixed||5/1 ARM|
|Wells Fargo Bank||02/05/2012||3.875%||3.125%||2.125%|
|M&I Marshall and Ilsley Bank||02/05/2012||3.875%||3.250%||NA|
|U.S. Bank National||02/05/2012||4.250%||3.500%||2.875%|
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.