Chicago Area Mortgage Rate Survey February 10, 2012

Written by: Scott Sery

According to a recent Primerates.com survey of Chicago area mortgage rates offered by the largest area banks & credit unions, many of the Chicago area banks lowered their rates.  JP Morgan Chase (www.jpmorganchase.com) had the lowest rate of 3.75% on 30-year fixed -rate conforming loans in the Chicago metro area for well-qualified borrowers. PNC Bank National (www.pnc.com) had rates of over half a percentage point higher at 4.38%.

People with an existing mortgage that are looking to refinance have a great opportunity ahead of them.  With rates at some of the lowest levels in history they can knock at least a percentage point off their loan.  For people a few years into their first mortgage this means they have to start the 30 year period over again.  This should not be a problem.  Since they are accustomed to paying a higher rate each month, they can now keep paying that higher rate, but have more of their monthly payments go toward principal.  For instance, a $200,000 loan at 6% would have monthly payments of principal and interest of $1,199.  Refinancing to 4% would lower those payments to $954, a savings of $245 per month.  But if that $245 was reapplied to principal it would lower the length of the loan from 30 years, to just a few months over 20 years.  Through the length of the loan a total of $51,296 would be saved in interest payments, all without changing the amount out of pocket each month.

Top Chicago Area Banks and Credit Unions

30-year Fixed

15-year Fixed

5/1 ARM

JP Morgan Chase

3.75%

2.88%

2.25%

Fifth Third Bank

3.88%

3.13%

2.50%

RBS Citizens National

4.00%

3.25%

2.63%

Bank of America

4.13%

3.50%

2.88%

Citibank

4.13%

3.38%

NA

First Midwest Bank

4.13%

3.50%

3.38%

US Bank National

4.25%

3.50%

2.88%

PNC Bank National

4.38%

3.63%

NA

Listed rates for Chicago area mortgage rates come from banks, thrifts and credit union and were listed on their websites on the date indicated for conforming loans with 0 points.  Data is believed accurate at time of collection, can change without notice, and will vary based on an individual’s credit history.  Contact a specific institution for current rates.


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Chicago Area Mortgage Rate Survey February 10,...

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