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Digital News Report – Mortgage refinance rates are heading lower again (see chart). Citibank, Chase, Bank of America and PNC all lowered their rates.
Refinancing rates are different from purchase mortgage rates. When homeowners refinance their home, the old mortgages are paid off and a new loan replaces them. The goal is to lower the interest rate, the payments and the overall obligation of the loan.
PNC lowered their rate the most. The bank had a 30-year fixed mortgage rate (FRM) of 5.13%. Their 15-year FRM was 4.48%.
These are base rates. The final monthly payment will depend on the borrowers credit score, the loan amount and the location of the home.
Borrowers need to weight the cost of the loan. In some cases, the points, the appraisal fees and title costs may be excessive. Most borrowers look for loans with reduced or no closing costs.
Citibank had a rate of 5.17%. The bank also had a rate of 4.61% on their 15-year FRM. Their 5-year adjustable rate mortgage (ARM) hit 3.42%.
Bank of America offered their 30-year FRM at 5.04%. Their 5/1 ARM rate was 3.28%.
Chase Bank had a rate of 4.97%. Their 15-year rate was 4.27% and their ARM rate was 3.20%.
By Tina Brown
| REFINANCE RATES | ||||
| 2/28/2011 | Citi Bank | PNC | Bank of America | Chase Bank |
| 30-Year Fixed | 5.17% | 5.13% | 5.04 | 4.97% |
| 15-Year Fixed | 4.61% | 4.48% | NA | 4.27% |
| 5-Year Adjustable | 3.42% | NA | 3.28 | 3.20% |