Bank Mortgage Rates

Today's Bank Mortgage Rates

Usually when you have made the decision to buy a home, or refinacne your exisiting mortgage, you think of one your options being getting the mortgage loan from your banking institution first.

Are all Bank Mortgage Rates the Same?

No. Banks all have their own loan programs and guidelines that they set for determining their bank mortgage rate per individual and program. Different banks offer different lending programs and therefore you may get a different loan amount or mortgage interest rate from two separate banks.

What Drives Bank Mortgage Rates?

Bank mortgage rates are driven by many different factors such as the Treasury Bond Interest Rates, Fed Funds Rates, Global money exchange rates to name a few; however it depends on their individual bank's guidelines for how that effects consumers with the mortgage rates offered. Bank mortgage rates are often driven up or down by the “federal fund rate” which is the rate at which banks can borrow against the Federal Reserve, however this may not determine a higher or lower mortgage interest rate for consumers.

Can I get a better interest rate than what the bank offered?

Yes, it is important to compare more than one bank mortgage rate to other banks and even other mortgage brokers. Mortgage brokers can often find programs that will work with you in different loan scenarios, such as less-than-perfect credit or low down payments. One bank may offer a loan program that another bank does not.

Comparing Bank Mortgage Rates & Programs

Most banks will offer similar loan programs, such as 30-year fixed rate mortgages, 15-year fixed rate mortgages, 3, 5 or 7 year adjustable rate mortgages, and some will offer government backed programs such as FHA loans, HARP refinancing, HUD etc. What will differ the most is the guidelines and fees a bank charges to put together a loan for each individual, as well as that individuals credit, income, assets and down payment.

What you must compare is the fees associated with the loan programs you are being offered. You may find a slightly higher bank mortgage rate at one institution, but it covers fees that another institution does not cover with their offer of a lower mortgage rate. Overall you need to know the total cost of each program including fees and requirements like down payment, mortgage insurance and closing costs as well as what you can pay out of pocket initially and can afford monthly.