Out of the several things that fuel the upward and downward journey of the mortgage rates, the loan structure outstripped the others and played its part in increasing the 30 year fixed mortgage rates today at the Bank of America (NYSE: BAC) BAC +0.57%. The standard 30 year fixed rate mortgage (FRM) loan options have now been listed at an interest rate of 4.250%, which is up from the 4.125% rate listed yesterday. The 30 year FRMs accompany an annual percentage rate (APR) yield of 4.350% today.
As far as the shorter, 15 year fixed rate mortgages are considered, the Bank of America publishes the loan schemes at a rate of 3.375%, along with an annual percentage yield of 3.608%. For the borrowers, who are in need of something more flexible in terms of interest rates, Bank of America also provides 5 year variable adjustable rate mortgages (ARM) at a rate of 3.125% today, along with an APR yield of 3.062%.
Coming to the refinancing portfolio, Bank of America today listed its 30 year refinancing fixed rate mortgages at a rate of 4.375%, carrying an APR yield of about 4.523% and 0.631 worth discount points. The shorter 15 year refinancing fixed mortgage rates have also experienced a hike from yesterday and have been published by the bank at 3.375% and yield an APR of 3.757% and 1.037 discount points.
The borrowers who are looking for more flexible financing options, taking the 5 year refinancing adjustable rate mortgages from Bank of America would be a nice option. Today, the bank quoted the 5 year refinancing ARMs at an increased rate of 3.375% and APR yield of 3.148%, along with 0.203 discount points.
Since the crash of the housing market, it is for the first time that buyers, without a lot of money, can now obtain mortgage easily from Bank of America under its new home loan structure. According to the new structure, the bank will now provide the facility to the interested buyers to own their dream home with as low as 5 % worth down payment.
Earlier, the buyers with poor credit score or without stacks of locker-money, used to apply for the FHA (Federal Housing Administration) versions of the fixed and adjustable rate mortgages as they came with lower down payments and at less rate of interests. But now, with the new home loan structure of Bank of America, it would be easier to obtain a home in the tough realty market. Moreover, this initiative would have a positive impact on stabilizing the home prices and the mortgage rates in the weeks to come, which somehow managed to jump to upper levels after the announcement of the new 5% policy.
Disclaimer: The rates quoted above are basically the average advertised by a particular lending company. No guarantee of taken from the lender’ aspect whether the borrower will qualify for the mortgage rates mentioned in the article. The lenders dole out interest depending upon various facets, some of which may be unique to the borrower. This website does not engage in the sale or promotion of financial products and makes no claims as to the accuracy of the quotation of interest rates.