Baltimore Mortgage Rates Survey – Week of February 6, 2012

According to a recent Primerates.com survey of Baltimore mortgage rates offered by the largest area banks & credit unions, two Baltimore institutions offered rates at 3.875% on 30-year fixed-rate conforming loans in the Baltimore area for well-qualified borrowers.  Wells Fargo ( www.wellsfargo.com ) and The Columbia Bank (www.thecolumbiabank.com ) offered this rate. While the SunTrust bank ( www.suntrust.com ) was offering a slightly higher rate of 3.990%. 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 Baltimore Area Banks and Credit Unions As of 30-year Fixed 15-year Fixed 5/1 ARM Wells Fargo 02/05/2012 3.875% 3.125% 2.125% SunTrust Bank 02/05/2012 3.990% 3.375% 2.625% The Columbia Bank 02/05/2012 3.875% 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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Baltimore Mortgage Rates Survey – Week of February 6, 2012

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