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Digital News Report – Refinance mortgage interest rates dropped yesterday at some banks while they increased at others (see chart). Bank of America increased their refinance loan products while Chase lowered them.
Refinance rates may be different from purchase mortgage rates. When a homeowner refinances their home loan, the original obligations are paid-off and a new obligation takes their place.
Citibank had a refinance rate of 5.19%. Their 15-year fixed rate mortgage (FRM) was 4.62% and their 5/1 adjustable rate mortgage (ARM) was 3.42%.
PNC had a rate of 5.11% on their refinance mortgages. Their 15-year lending rate was 5.48%.
Bank of America had a rate of 5.16% on their 30-year FRM. Their 5-year ARM rate was 3.378%.
Chase Bank had 30-year fixed mortgage rates of 4.97%. Their 15-year rate was 4.27 percent.
The final interest rate will depend on several factors, including the location of the home, the loan amount, and the credit history of the borrower. A good credit score will translate into less risk for the lender while a bad credit score will translate into more risk. The more risk, the higher the interest rate.
By Tina Brown
| REFINANCE RATES | ||||
| 3/3/2011 | Citibank | PNC | Bank of America | Chase Bank |
| 30-Year Fixed | 5.19% | 5.11% | 5.16 | 4.97% |
| 15-Year Fixed | 4.62% | 4.48% | NA | 4.27% |
| 5-Year Adjustable | 3.42% | NA | 3.378 | 3.18% |