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Digital News Report – Refinancing rates were lower this week compared to last (see chart). The trend is lower with Chase, Citibank and Bank of America lowering their rates significantly.
Refinance rates may be different from purchase mortgage rates. When a homeowner refinances their loan, they pay-off the existing loan and replace it with a new one. The goal is to lower the interest rate and monthly payments. Borrowers may also want to pull-out equity and shorten the term of the loan.
Citibank had a rate of 4.55% Friday. The week before the bank had an interest rate of 4.68%. Citibank also lowered their 15-year refinance rates to 4.19%.
Many banks still offer adjustable rate mortgages (ARMS). These loans adjust higher or lower after a set period of time. During times of low interest rates the bank benefits. The bank can make the loan with peace of mind. If the rates increase, so will the loans the make now.
Citibank has a rate of 3.30% on their 5/1 ARM. Last week the rate was 3.37%.
PNC had a rate of 4.62% today. This is the banks refinance loan rate, not their purchase rate.
Bank of America mortgage rates were lower this week. The bank is offering their 30-year fixed rate mortgage for 4.483%. Last week the rate was 4.534%.
Chase mortgage rates were down to 4.32% Friday. The bank also offers a 15-year fixed rate mortgage and an adjustable refinance mortgage.
By: Tina Brown
| REFINANCE RATES | ||||
| 11/5/2010 | Citi Bank | PNC | Bank of America | Chase Bank |
| 30-Year Fixed | 4.55% | 4.62% | 4.483 | 4.32% |
| 15-Year Fixed | 4.19% | 4.06% | NA | 3.77% |
| 5-Year Adjustable | 3.30% | NA | 3.181 | 3.12% |