According to a recent Primerates.com survey of Sacramento mortgage rates offered by the largest area banks & credit unions, six Sacramento institutions offered rates below 4.00% on 30-year fixed-rate conforming loans in the Sacramento area for well-qualified borrowers. The River City Bank (www.rcbank.com) offered rates at 3.38%. Wells Fargo (www.wellsfargo.com) and the Bank of the West (www.bankofthewest.com) offered rates at 3.75% while the U.S. Bank National (www.usbank.com) offered rates at 3.95%. one other institution, namely the El Dorado (www.eldoradosavingsbank.com) offered rates above 4.00% with 4.75%.
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 | 5/27/2012 |
3.75% |
3.93% |
2.88% |
3.18% |
2.25% |
3.15% |
| U.S. Bank National | 5/27/2012 |
3.95% |
4.01% |
3.38% |
3.48% |
2.63% |
3.49% |
| JPMorgan Chase | 5/27/2012 |
3.88% |
3.93% |
-99 |
-99 |
-99 |
-99 |
| Bank of the West | 5/27/2012 |
3.75% |
3.81% |
3.00% |
3.11% |
2.50% |
3.13% |
| El Dorado | 5/27/2012 |
4.75% |
4.83% |
3.38% |
3.51% |
NA | NA |
| Umpqua Bank | 5/27/2012 |
3.63% |
3.77% |
2.88% |
3.12% |
NA | NA |
| River City Bank | 5/27/2012 |
3.38% |
3.47% |
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.
){kind=link}