New York City Mortgage Rates Survey – Week of January 16, 2012

According to a recent Primerates.com survey of New York City mortgage rates offered by the largest area banks & credit unions, two NYC institutions offered rates at 3.88% on 30-year fixed -rate conforming loans in the New York metro area for well-qualified borrowers.  Wells Fargo (www.wellsfargo.com) and Capital One (www.capitalone.com) offered this rate.  While most banks were offering rates right around 4%, Hudson City Bank remained at the top with some of the highest in the nation at 4.63%

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.

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.