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Digital News Report – Fixed rate refinance mortgages were higher this week but the 5-year adjustable rate refi was lower Friday (see chart).
With mortgage rates at historic lows, Americans are scrambling to refinance their homes. Despite the low rates, it has become very difficult for some people to acquire a loan.
Citibank is offering a 30-year fixed rate refinance mortgage for 4.73%. Their 15-year fixed mortgage rate was 4.35%. The bank also offers a 5-year adjustable rate mortgage for 3.36%.
Adjustable rate mortgages can re-adjust after a set period of time. The interest rate will be dependent on external criteria.
PNC had a 30-year fixed rate mortgage for 4.86%. Their 15-year rate was 4.24%.
Bank of America had a rate of 4.776%. Their 5/1 ARM was 3.211%.
Chase offers a wide range of mortgage products. Their 30-year fixed rate loans were 4.56%.
Refinance mortgages are different from purchase loans. When a homeowner refinances their home, the original loan is paid-off and a new mortgage is created. The goal is to lower interest rates, payments and the overall cost of the loan.
By Tina Brown
| REFINANCE RATES | ||||
| 11/12/2010 | Citi Bank | PNC | Bank of America | Chase Bank |
| 30-Year Fixed | 4.73% | 4.86% | 4.776 | 4.56% |
| 15-Year Fixed | 4.35% | 4.24% | NA | 3.90% |
| 5-Year Adjustable | 3.36% | NA | 3.211 | 3.22% |