According to a recent Primerates.com survey of Sacramento mortgage rates offered by the largest area banks & credit unions, three Sacramento institutions offered rates below 4.000% on 30-year fixed-rate conforming loans in the Sacramento area for well-qualified borrowers. Wells Fargo (www.wellsfargo.com) offered rates at 3.875%, the Umpqua Bank (www.umpquabank.com) offered 3.750% rates, and the River City Bank (www.rcbank.com ) offered the lowest rate with 3.500%. They offered an Annual Percentage Rate of 4.054%, 3.869%, and 3.605% respectively. Other five banks offered rates at about 4.000% and the El Dorado (www.eldoradosavingsbank.com) offered the highest rate with 4.750%.
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 Sacramento Area Banks and Credit Unions||As of||30 Yr-Rate||30 Yr- APR||15 Yr- Rate||15 Yr- APR||5/1 ARM-IR
|Bank of America||02/13/12||4.125%||4.276%||3.500%||3.729%||2.750%||3.293%|
|U.S. Bank National||02/13/12||4.000%||4.200%||3.250%||3.596%||2.500%||3.528%|
|Bank of the West||02/13/12||4.125%||4.188%||3.375%||3.485%||3.000%||3.304%|
|River City Bank||02/13/12||3.500%||3.605%||3.000%||3.187%||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.