Minneapolis Mortgage Rates Survey – Week of February 6, 2012

Written by: BetterFinancePath Staff

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.


Minneapolis Mortgage Rates Survey – Week of...

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