Adjustable Rate Mortgages at the Top Five US Bank Mortgage Lenders
Since the price of housing has become so expensive, a number of home buyers continue to look for lower monthly mortgage payments with an adjustable rate mortgage. By reducing the mortgage rate on a home loan by .500%, a borrower a may be able to lower their payments by $31.37 a month for every $100,000 borrowed. Of course, the trade off is the potential for a rising rate and monthly payment when the adjustable rate mortgage adjusts in the future.
The advantage of the 5/1 adjustable rate mortgage (ARM) is that this home loan has an initial five year fixed -interest rate. After this initial five year fixed term, the mortgage rate will adjust on an annual basis according to an index plus a margin.
Current mortgage rates for 5/1 adjustable rate mortgages offered by the five largest US banks include the following rate and point options:
Chase Bank offers a 5/1 ARM with a rate of 4.75% and no points with an APR of 3.847%.
Chase Bank mortgage can be reached at 800-873-6577.
Bank of America offers a 5/1 ARM at 4.00% with 0.875 points and an APR of 3.655%.
Bank of America mortgage operations can be reached at 800-551-7975.
Citibank does actively market a 5/1 ARM. Rates were not available.
To contact Citibank mortgage originations the phone is 800-667-8424.
Wells Fargo Bank promotes a 5/1 adjustable rate mortgage with an interest rate of 4.00% with 1 point and a 3.663% APR.
Wells Fargo Bank mortgages can be contacted at 877-937-9357.
US Bank markets a 5/1 ARM at 4.125% and no pints with an APR of 3.948%.
US Bank mortgages loan personnel can be contacted at 888-831-7524.
Just for good measure, Quicken Loans offers a 5/1 ARM at 3.875% with 1.875 points and an APR of 3.654%.
Quicken Loans can be reached at 800-251-9080.
Mortgage rates continue to remain low though the forecast is for rates to rise in the coming months. During periods of rising rates, borrowers should generally consider locking into the current low fixed interest rates that are available in the mortgage market. Whether mortgage interest rates will rise is open for debate, however rates are highly unlikely to fall any further and will inevitably begin to rise at some point over the next few months or years.
The mortgage rates from the mortgage lenders listed were obtained on January 8, 2010. Mortgage rates are subject to change. All loans are subject to bank approval, additional conditions may apply.
Mortgage Rates January 11, 2010 on 30 Year fixed Rate Home Loans
Mortgage rates have been inching up slowly but steadily over ansthe past several weeks. Though mortgage rates are up, the increases have been mild and rates remain at relatively low levels.
The enclosed list of mortgage rates includes some of the largest mortgage lenders in the U.S. Among the list of mortgage lenders and mortgage rates are a number of 30 year term home loans with a rate of 5.25% and no points. Mortgage rates from the top lenders can be found lower on the list with added cost of paying points along with closing costs.
As mortgage rates have become slightly more volatile, the biggest change in mortgage rates has been the increase in the average amount of points and fees charged. The enclosed list searches among the top mortgage lenders and post the rates with the lowest points
30 year fixed rate mortgages with no points can be found at the following large mortgage lenders:
US Bank 30 year rate is 5.250 with 0.000 points and an APR of 5.317%
Phone number: 888-831-7524.
AimLoan.com 30 year has a rate of 5.250% with 0.000 points and an APR of 5.337%
Phone number: 888-411-4246.
Shelter Bank 30 year rate is 5.250 with 0.000 points and an APR of 5.810%
Phone number: 800-251-7115.
In addition to those rates a few large US mortgage lenders have rates that at 5.25% or lower with less than a one point origination fee.
Citibank 30 year fixed rate is 5.250% with 0.125 points with an APR of 5.443%
Phone number: 800-667-8424.
Chase Bank 30 year is at 5.250% with 0.250 points and an APR of 5.323%
Phone number: 800-873-6577.
Fifth Third Bank offers a slightly lower 30 year rate at 5.115% with 0.500 points and an APR of 5.272%
Phone number: 866-351-5353.
Mortgage rates are subject to change at anytime. Interest rates change regularly, based on fluctuations in the interest rate market.
In order to determine the borrower’s ability to repay the loan and adjust the mortgage rate to match any added risk on a particular borrower’s home loan, the mortgage lender will evaluate income and assets as well as debts and credit history.
Call the mortgage lender to obtain the most current home loan rates and obtain a written list of the estimated closing costs associated with your mortgage transaction to avoid any misunderstandings regarding the proposed transaction. A good faith estimate is required by federal law; it includes charges from the mortgage lender and third party charges, and approximate costs for property taxes and homeowner’s insurance.
Mortgage rates offered by the listed local mortgage lenders and banks are accurate of January 10, 2009. Rates may change and additional conditions will apply.
The above lenders all offer mortgage rate lock options with various conditions. Once a borrower locks in a mortgage rate the mortgage rate will not change regardless of what happens in the interest rate market as long as they close on the home loan on or before the rate lock expiration date.