According to a recent Primerates.com survey of Washington DC mortgage rates offered by the largest area banks & credit unions, seven Washington DC institutions offered rates above 4.00% on 30-year fixed-rate conforming loans in the Washington DC area for well-qualified borrowers. Wells Fargo (www.wellsfargo.com) and the Bank of America (www.bankofamerica.com) offered the lowest rates in the city with 4.00% while the Citibank (www.citibank.com) offered the highest rates in the United States with 4.50%.
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 Washington DC 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 |
| Capital One |
03/16/2012 |
4.13% | 4.20% | 3.25% | 3.38% | 2.75% | 2.83% |
| Wells Fargo |
03/17/2012 |
4.00% | 4.17% | 3.38% | 3.67% | 2.25% | 3.06% |
| Bank of America |
03/16/2012 |
4.00% | 4.15% | 3.38% | 3.64% | 3.00% | 3.32% |
| Suntrust Bank |
03/16/2012 |
4.13% | 4.01% | 3.63% | 3.42% | 2.88% | 2.45% |
| Branch banking & Trust |
03/16/2012 |
4.31% | NA | 3.35% | NA | NA | NA |
| Citibank |
03/19/2012 |
4.50% | 4.64% | 3.88% | 4.11% | NA | NA |
| HSBC Bank |
03/16/2012 |
4.25% | 4.39% | 3.50% | 3.73% | 3.00% | 3.28% |
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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