According to a recent Primerates.com survey of Sacramento mortgage rates offered by the largest area banks & credit unions, five Sacramento institutions offered rates below 4.00% on 30-year fixed-rate conforming loans in the Sacramento area for well-qualified borrowers. Umpqua Bank (www.umpquabank.com) offered rates at 3.38%. River City Bank (www.rcbank.com) offered rates at 3.50%. Wells Fargo (www.wellsfargo.com) and JPMorgan Chase (www.jpmorganchase.com) offered rates at 3.88%. The U.S. Bank National (www.usbank.com) offered rates at 3.95%. One institution, namely El Dorado (www.eldoradosavingsbank.com) offered rates above 4.00% with 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.
| 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 | 5/1 ARM-APR |
| Wells Fargo | 07/28/2012 | 3.88% | 4.05% | 2.88% | 3.18% | 2.38% | 3.12% |
| U.S. Bank National | 07/28/2012 | 3.95% | 4.01% | 3.25% | 3.36% | 2.88% | 3.50% |
| JPMorgan Chase | 07/28/2012 | 3.88% | 3.97% | 3.00% | 3.16% | 2.50% | 3.11% |
| El Dorado | 07/28/2012 | 4.63% | 4.71% | 3.25% | 3.39% | NA | NA |
| Umpqua Bank | 07/28/2012 | 3.38% | 3.52% | 2.63% | 2.87% | NA | NA |
| River City Bank | 07/28/2012 | 3.50% | 3.61% | 3.00% | 3.16% | 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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