Houston Area Mortgage Rate Survey February 10, 2012

Written by: Scott Sery

According to a recent Primerates.com survey of Houston area mortgage rates offered by the largest area banks & credit unions, several Houston area banks offered rates under 4%.  JP Morgan Chase (www.jpmorganchase.com), and Compass Bank (www.bbvacompass.com) both offered the rates at 3.75% on 30-year fixed -rate conforming loans in the Houston metro area for well-qualified borrowers.  Comerica Bank (www.comerica.com) remained the highest offer with rates a half a percentage point higher at 4.25%.

One of the great ways the government encourages people to borrow money to buy a home is by allowing the interest payments to be deducted from taxes.  Many home owners are in the 25% tax bracket, so when figuring out interest rates and how they compare, they can actually figure that they are paying 25% less than what is listed.  For instance, a loan that has an interest rate of 4% really only feels like 3% after the write-off.   So if a person pays $2,000 over the course of a year on interest payments, they will be able to write that much off their taxes and see an immediate return of $500.  Many people like to use this write-off as a justification for carrying the debt.  However, it really does not make sense if the loan is only held for purposes of writing off interest payments.  Why spend $1 in order to save $.25?  If you are successful enough to be in the position to pay cash for the house, it would be better to give the extra money to charity and get the deduction, than to give the money to the bank and get the deduction.

Top Houston Area Banks and Credit Unions

30-year Fixed

15-year Fixed

5/1 ARM

JP Morgan Chase

3.75%

3.00%

2.38%

Compass Bank

3.75%

2.75%

2.63%

Wells Fargo

3.88%

3.13%

2.13%

Capital One

3.97%

3.27%

2.84%

Bank of America

4.25%

3.50%

3.00%

Sterling Bank

4.25%

3.41%

2.94%

Comerica Bank

4.25%

3.41%

2.94%

Listed rates for Houston 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.


LIKE US ON FACEBOOK   

Houston Area Mortgage Rate Survey February 10,...

Share Tweet