Whether you are buying your first home or your vacation home or just investing in Real estate, you have good news. One of the country’s largest lenders, The Bank of America (NYSE:BAC) has slashed the interest rates of all its mortgage loans, except Re-financing options. After the acquisition of Countrywide Financial for $4.1 billion five years ago, BoA Home loans has been raring to compete with its primary competitors like Wells Fargo, J.P. Morgan and Citibank through the mere figures.
In such a daring drive, BofA has now been quoting a mere 3.75% interest on its benchmark 30 year fixed rate mortgage. Today’s announcements declared such cut-throat competitive measures by BofA to usher in some long awaited movement in the American debt market. Along with an Annual Percentage Rate (APR) of 3.902% and discount points of upto 1.033, the 30-year fixed-ratemortgage is sure to remain as the most popular choice of Housing finance for the common American.
The opening rate of the 15-year fixed rate mortgage is also now reduced to3%, while yielding an APR of3.284% anddiscount points of 1.15.
This is the choice of the comparatively more affluent and experienced borrowers who want to ease off the interest burden quickly with less interest paid. However, people who like a bit of risk and are mostly looking for finance while investing in Real-estate choose the 5/1 Adjustable Rate Mortgages, the interest rates of which were also reduced to 2.375% while yielding a 2.923% APR and rewarding a cool 0.957discount points. Besides these most popular three types of mortgages, the 7 year ARM deals now comes at a mere 2.75% interest andan APR of 2.955%. Even the interests on 10 year Adjustable Rate Mortgages are now only 3.250% with an APR of 3.241%.
All these figures, sourced from the BofA website are subject to variation based upon market activity as Mortgage rates fluctuate everyday depending on the index to which they’re tied. So it’s advised that you consult any of the 5,873BofAMortgage Retail offices, as you get even better deals based upon your area of property and down payment amount.