According to a recent Primerates.com survey of Sacramento mortgage rates offered by the largest area banks & credit unions, five Sacramento institutions offered rates below 4.00% on 30-year fixed-rate conforming loans in the Sacramento area for well-qualified borrowers. Umpqua Bank (www.umpquabank.com) offered rates at 3.38%. River City Bank (www.rcbank.com) offered rates at 3.50%. Wells Fargo (www.wellsfargo.com) and JPMorgan Chase (www.jpmorganchase.com) offered rates at 3.88%. The U.S. Bank National (www.usbank.com) offered rates at 3.95%. One institution, namely El Dorado (www.eldoradosavingsbank.com) offered rates above 4.00% with 4.63%.
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 Sacramento 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|
|U.S. Bank National||07/28/2012||3.95%||4.01%||3.25%||3.36%||2.88%||3.50%|
|River City Bank||07/28/2012||3.50%||3.61%||3.00%||3.16%||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.