According to a recent Primerates.com survey of Phoenix mortgage rates offered by the largest area banks & credit unions, three Phoenix institutions offered rates at below 4.000% on 30-year fixed -rate conforming loans in the Phoenix metro area for well-qualified borrowers. Wells Fargo (www.wellsfargo.com) and Mutual of Omaha Bank (www.mutualofomahabank.com) offered rates at 3.875% while Compass Bank (www.bbvacompass.com ) offered the lowest rate with 3.750%. While most banks were offering rates right around 4%, U.S. Bank National Association remained at the top with some of the highest in the nation at 4.500%
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 Phoenix 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 |
|
Wells Fargo |
02/12/2012 | 3.875% | 4.014% | 3.125% | 3.368% | 2.250% | 3.118% |
| Compass Bank | 02/12/2012 | 3.750% | 3.931% | 2.875% | 3.137% | 2.625% | 3.248% |
| M&I Marshall and Ilsley Bank | 02/12/2012 |
4.000% |
4.029% |
3.375% |
3.426% |
NA |
NA |
| U.S. Bank National Association |
02/12/2012 |
4.500% |
4.564% |
3.750% |
3.860% |
2.875% |
3.580% |
| Washington Federal
|
02/12/2012 |
4.000% |
4.095% |
NA |
NA |
NA |
NA |
| Mutual of Omaha Bank
|
02/12/2012 |
3.875% |
3.943% |
3.125% |
3.240% |
NA |
NA |
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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