Detroit Mortgage Rates Survey – Week of July 16, 2012

Written by: Primerates Staff

According to a recent Primerates.com survey of Detroit mortgage rates offered by the largest area banks & credit unions, three Detroit institutions offered rates below 4.00% on 30-year fixed-rate conforming loans in the Detroit area for well-qualified borrowers. The Huntington National Bank (http://www.huntington.com) offered rates at 3.38%, the Citizens Bank (www.citizensbanking.com) offered rates at 3.69% while the RBS Citizens (www.citizensbank.com) offered rates at 3.88%.

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 Detroit 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
RBS Citizens 07/15/2012 3.88% 3.91%  NA NA 2.63% 3.15%
The Huntington National Bank 07/15/2012 3.38% 3.62%  NA NA 2.63% 3.24%
Citizens Bank 07/15/2012 3.69% 3.79% 2.93% 3.10% 2.56% 3.19%

 

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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Detroit Mortgage Rates Survey – Week of July...

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