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Digital News Report – Refinance rates were higher today with Bank of America making some big changes (see chart). Citibank drastically cut interest rates today.
Banks usually charge a different rate to refinance a home than they do to purchase one. Refinancing rates are usually higher, but some banks, like HSBC, charge the exact same for both home loan products.
When a homeowner refinances their mortgage, the old obligations are paid-off in full and a new loan replaces them. Currently, many subprime adjustable rate mortgages (ARM) are adjusting putting homeowners in a bind. The good news is that rates are still near historic lows.
Citibank had a rate of 4.92%. Their 15-year fixed rate mortgages (FRM) were 4.20% and their 5-year ARM rates were 3.15%.
PNC had a 30-year fixed rate mortgage for 4.83% today. Their 15-year mortgages were 4.10%.
Bank of America raised their rates today. Their 30-year FRM was 5.005% and their 5-year ARM rates was 3.228%.
Chase held steady at 4.97%. The bank also offers other loan products. See the chart for more details.
By Tina Brown