Mortgage rates took a break this week after free falling for some time, national average rate averages were unchanged the past two trading days. Bank of America (NYSE:BAC) is quoting 4.00% even for the benchmark 30 year fixed rate home loan.
National averages are 4.03% the 30 year loan through the holiday weekend. BoA’s loan quote comes with 1.125 points and and APR of 4.20%. While some lenders are quoting below 4.00%, this level is quite competitive among the nation’s biggest mortgage brokerages.
15 year loans at the back still hover at 3.50%, an aggressive rate but not the most competitive. The loan has .875 points and yields an APR of 3.814%. 20 year loans at Bank of America start at 3.875%, not much under the 30 year rate. At that level the 15 year loan duration is a much better deal than the 20 year offering.
Adjustable rate mortgages at the bank begin at 2.875% for the 5 year ARM. 7 year ARMs are 3.125% today and 10 year ARMs are 3.75%.
Housing prices continue to be quite low and homeowners who saw their homes lose substantial value over the past 3 years may not be able to refinance. The challenge in refinancing is that LTV ratios are closely watched by lenders. The Value of a home must be 20% more than the Loan amount for most lenders to consider refinancing a loan. So if a home value has dropped significantly it might prevent a borrower from refinancing.