According to a recent Primerates.com survey of Seattle/Tacoma mortgage rates offered by the largest area banks & credit unions, three Seattle/Tacoma institutions offered rates below 4.00% on 30-year fixed-rate conforming loans in the Seattle/Tacoma area for well-qualified borrowers. The HomeStreet Bank (www.homestreet.com) offered rates at 3.75%. U.S. Bank National (www.usbank.com) and KeyBank National (www.key.com) offered rates at 3.88%. two other institutions, namely the Washington Federal (www.washingtonfederal.com) and the First Savings Bank Northwest (www.fsbnw.com) offered rates at 4.00%.
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 Seattle/Tacoma 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 |
| U.S. Bank National | 5/21/2012 | 3.88% | 3.94% | 3.13% | 3.23% | 2.75% | 3.54% |
| KeyBank National | 5/21/2012 | 3.88% | 3.94% | 3.06% | 3.17% | 2.67% | 3.19% |
| Washington Federal | 5/21/2012 | 4.00% | 4.10% | NA | NA | NA | NA |
| HomeStreet Bank | 5/21/2012 | 3.75% | 3.89% | 3.00% | 3.24% | 2.63% | 2.50% |
| First Savings Bank Northwest | 5/21/2012 | 4.00% | 4.08% | 3.25% | 3.39% | 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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