Global economic forces continue to bear on mortgage interest rates, holding them at very enticing levels. This is true across the board, at the largest lenders like Bank of America (NYSE:BAC) to the smallest broker.
Today benchmark 30 year fixed loans at BoA have a best quote of 4.25% with an APR not much higher at 4.415%. This rate is relatively representative of today’s quotes as Wells Fargo (NYSE:WFC) and CitiMortgage (NYSE:C) are the same for this home purchase loan.
Shorter term loans like the 15 year fixed rate contracts are 3.25% at BoA which is comparable to the quotes from CitiMortgage and PNC Mortgage and a bit lower than Chase Bank.
20 year fixed mortgage interest rates are 3.75% with an APR of 4.004%. As rates are following more and more borrowers are looking at shorter loan durations which build principle balances more quickly.
Adjustable rate mortgages at Bank of America start at a low of 2.75% for 5 year loans. 7 year ARMs are 3.00% and 10 year ARMs are 3.625%. While these loans have the potential to have increases in interest rate, the short term likelihood of big increases is low. The Fed has committed to holding short term interest rates at rock bottom for the next two years. However there is not a big difference between the 2.75% ARM and the 15 year fixed 3.25% which doesn’t have the risk of changing over time.
Visit www.BankofAmerica.com for additional quotes and lending program information.