Washington DC Mortgage Rates Survey Week of December 26, 2011

Written by: Scott Sery

According to a recent Primerates.com survey of Washington DC mortgage rates offered by the largest area banks & credit unions in the DC area SunTrust Bank (www.suntrust.com) and Wells Fargo (www.wellsfargo.com) both offered rates at 3.88% on 30-year fixed -rate conforming loans for well-qualified borrowers.  The offerings were staggered up to the highest with Branch Banking and Trust (www.bbt.com) which advertises a rate of 4.31%.

There is a good reason that the 30 year and 15 year fixed rate mortgages are the most popular home loans available.  They offer the most protection to the borrower in terms of predictability.  While an interest-only loan may be suitable for some borrowers, in most circumstances it is not.  In this case the borrower will be gambling on the fact that the property should increase significantly in value over time.  However, as we saw in the last several years, the value of many homes actually decreased substantially.  Owners of this type of mortgage were hurt even more than those who had been paying even a small amount toward the principal of the loan.

Along the same lines, many people will not be best served with an Adjustable Rate Mortgage (ARM).  The initial rate seems enticing, but after 5 years the loan interest rate can increase significantly, and continue to increase every year.  In the long run those with this type of loan can find themselves paying quite a bit more than those who took a conventional fixed rate loan.  Even if the borrower plans to sell the house before the rate adjusts, the market can be fickle and cause the house to sit without selling for quite a while.

Top Washington DC Area Banks and Credit Unions

As of

30-year Fixed

15-year Fixed

5/1 ARM

SunTrust Bank

12/23/11

3.88%

3.25%

2.63%

Wells Fargo

12/26/11

3.88%

3.25%

2.25%

Bank of America

12/23/11

4.00%

3.38%

2.88%

Capital One

12/23/11

4.00%

3.25%

2.75%

PNC Bank National

12/23/11

4.13%

3.25%

NA

Citibank

12/26/11

4.25%

3.50%

NA

HSBC Bank

12/23/11

4.25%

3.50%

3.00%

Branch Banking and Trust

12/23/11

4.31%

3.35%

NA

 

Listed rates from banks, thrifts and credit union 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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Washington DC Mortgage Rates Survey Week of...

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