Which Bank Has the Best Home Loan Rates in America?

Which Bank Has the Best Home Loan Rates in America?
 
 
 
 
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Home loan rates have been low in recent years, thanks to a financial environment that has kept borrowing costs muted. If you have decided it’s time to refinance or get a loan for a new home purchase, you can benefit from attractively low-interest payments.

While average rates hover between 3% and 5% for 30-year mortgages, it pays to shop around. Different lenders will offer different rates, and your credit history or financial profile can play a big role. It’s good to consider also regional banks and community lenders, as these might be able to give you special deals.

Below, find out our picks of the banks that offer the best home loan rates for your new loan.

Quicken Loans

There’s a reason why Quicken is the nation’s biggest lender when it comes to home loans. This home finance giant has been in the business for more than 30 years. It counts over 2 million families as customers. Quickens stands out for its smooth, hassle-free application process, which takes place online. This eliminates stacks of forms you might have to fill out elsewhere. The company offers competitive rates for home mortgages, with its 5-year and 30-year mortgages among the best countrywide.

Bank Of America

One of the country’s biggest banks is also among the best sources for home loans. Bank Of America stands out for its ability and willingness to go on a limb for the homeowner. The bank has a maximum loan-to-value ratio (LTV) of around 100%. This means that, if your credit score is good enough, you might be able to get a home loan with next to nothing down. The bank is also able to offer loan amounts up to the higher end of the scale, with a $5 million cap.

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BNC National Bank

First time home buyers face many challenges when looking for home loans. One of these is raising your first down payment. BNC National Bank is one of the best options for first time home buyers due to its work with Federal Housing Administration (FHA) loans. The FHA insures loans that offer concessionary terms for lower-income home buyers and others who may not have stellar credit. BNC also offers some conventional home loans at rates better than average.

Chase Bank

Chase Bank is one of the nation’s premier financial institutions, and this plays to your advantage if you are looking for a home loan. The bank offers just about every mortgage type available, right across the nation. This includes VA mortgages, jumbo mortgages, conventional mortgages, and other home loans. Chase home loans, depending on your credit, will likely be close to the prime lending rate. This means your interest payments will be near the lowest nationally. Chase offers mortgage options with down payments as low as 3%.

To Consider Before Your Purchase

It’s best to apply for a mortgage well ahead of time, in order to allow sufficient time for the preapproval process. If you are not applying for a new home loan but rather, looking to refinance an existing mortgage, special requirements apply. For example, you will typically need to have acquired 20% equity in the home. This can be from paying down your current loan or from a rise in your home’s market value.

Our Notes

  • Quicken Loans: Rated “Highest Customer Satisfaction” by J.D. Power 
  • Bank Of America: 620 minimum credit score
  • BNC National Bank: Also supports VA loans
  • Chase Bank: Allows a 50% maximum debt-to-income ratio

What Do They Say on Other Sites

“I just recently bought a house under Bank of America home loan program. My loan officer was Kevin **. I have to say that the service Kevin and his team provided was excellent. They were able to close my loan on time. Communication with anyone on the team was superb.” (Sammy at Consumer Affairs)

“I thought I would try BofA since I do a lot of business with them, BIG MISTAKE. My credit score is 740+ , the Loan to Value was 50%, but none of that matters, they put me through hell.” (Andrew at Consumer Affairs)

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