According to a recent Primerates.com survey of Pittsburgh mortgage rates offered by the largest area banks & credit unions, five Pittsburgh institutions offered rates below 4.00% on 30-year fixed-rate conforming loans in the Pittsburgh area for well-qualified borrowers. The Dollar Bank (www.dollarbank.com) and First Commonwealth (www.fcbanking.com) offered rates at 3.63%. The Fidelity Savings Bank (www.fidelitybank-pa.com) offered rates at 3.88%. Three other institutions offered rates above 4.00% with the Citizens Bank of Pennsylvania (www.citizensbank.com) and ESB Bank (www.esbbank.com) offering rates at 4.00% and the Washington Financial Bank (www.mywashingtonfinancial.com) offering rates at 4.13%.
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 Pittsburgh 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|
|Citizens Bank of Pennsylvania||5/20/2012||4.00%||4.04%||3.25%||3.31%||2.63%||3.15%|
|Northwest Savings Bank||5/20/2012||3.75%||3.77%||3.13%||3.17%||3.63%||3.16%|
|Washington Financial Bank||5/20/2012||4.13%||4.14%||3.38%||3.40%||3.13%||3.14%|
|Fidelity Savings Bank||5/20/2012||3.88%||3.92%||3.00%||3.09%||3.63%||3.26%|
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.