Consumers interested in purchasing a new home with a mortgage have several resources available to them. Mortgage lenders are the best option for homebuyers with average credit and funds. Homebuyers with excellent credit can qualify through a bank to get a lower interest rate mortgage.
First Merchants Bank
First Merchants Bank NA (NASDAQ: FRME FRMEFirst Merchants Corp43. 17 + 0. 30% Created with Highstock 4. 2. 6 ) is a bank headquartered in Central Indiana that has been providing banking services since 1893. The bank has branches in Indiana, Illinois and Ohio. However, it can serve customers nationwide through its online banking services. First Merchants Bank offers one of the best 30-year fixed-rate mortgages for home buyers, putting down 20%. On 29. August 2016, it offered a rate of 3. 5% and an annual percentage rate (APR) of 3. 524% for applicants with a credit score of 740 or more. This is 0. 046% lower than the weekly mortgage average of 3. 57%. For a loan amount of $ 300, 000, the fees would be $ 905 and the monthly amount would equal $ 1, 347. The bank also offers a discount of 0. 25% on loan products if the applicant has a checking account with First Merchants Bank. Bankrate lists First Merchants Bank as the lowest 30-year fixed mortgage rate, with a rating of four out of five stars.
Regions Bank
Regions Bank is part of Regions Financial Corp. (NYSE: RFRegions Financial Corp.15-0. 10% Created with Highstock 4. 2. 6 ) and has more than 1,600 banking offices in the South, Midwest and Texas. Company's mortgage division is located in Birmingham, Alabama, and currently has over 500 mortgage lenders. Regions Bank offers one of the best 15-year fixed-rate mortgages for home buyers, putting down 20%. The current rate was 2. 75% and the APR was 2. 795%, as of 29. August 2016. Applicants would pay $950 in fees and a monthly payment of $2. 036 for a loan amount of $ 300, 000 pay. Regions Bank four out of five stars, signaling that the bank is of general sound quality. Regions Bank also has the lowest current rate among other banks for a 15-year fixed-rate mortgage.
Raymond James Bank
Raymond James Bank NA is the banking division of Raymond James Financial Inc. (NYSE: RJF RJFRaymond James Financial Inc85. 35-0. 41% Created with Highstock 4. 2. 6 ) and is based in St. Petersburg, FL. Raymond James Bank offers customers traditional deposit accounts, certificates of deposit (CDs) and a variety of lending solutions. Specifically, it offers one of the best 5/1 adjustable rate mortgages (ARMs) for consumers seeking an adjustable rate loan.With a 20% down payment in August 2016, the interest rate is 2. 625% with an APR of 3. 201%. Applicants should expect to pay a $265 fee and make a monthly $205 for a $300, 000 loan. Consumers looking for a short-term mortgage option should contact Raymond James Bank to inquire about the 5/1 ARM, as Bankrate gives the bank a four-star rating, noting that it offers the lowest interest rates on a 5/1 ARM.
LincolnWay Community Bank
Homebuyers with less than perfect credit scores and those who fail to put 20% down should consider using a Federal Housing Administration (FHA) mortgage. FHA loans require a minimum score of 580 to qualify and a down payment of at least 3, 5%. LincolnWay Community Bank is a local bank in Mokena, Illinois. As of 29. August 2016, 30-year FHA mortgages were offered with an interest rate of 3.25% and an APR of 3.279% granted. For a loan in the amount of 300.000, applicants pay $1,085 in fees and a $306 per month. FHA loans are ideal for first-time home buyers due to lower down payment requirements. However, for down payments under 20%, the applicant can purchase private mortgage insurance (PMI), which adds to the monthly cost. Bankrate rates LincolnWay three out of five stars, an average rating. However, there are few banks that offer FHA loans, and LincolnWay offers the lowest interest rates.
IAB Finance Bank
Active military members, veterans, reservists and National Guard members, as well as spouses of deceased military members, are eligible to apply for Veterans Administration mortgages. VA loans are great solutions for the military because they don't require a minimum credit score or down payment for eligibility. IAB Financial Bank is an independent, community-owned bank serving four Indiana counties. It offered VA mortgages at a rate of 3. 25% and an APR of 3. 272%, as of 29. August 2016. Applicants will pay a fee of $828, and a $300, 000 property would $1.306 per month cost. Unlike FHA loans, VA loans that do not have at least a 20% down payment may not need to have PMI. Bankrate rates IAB Financial Bank four out of five stars, noting that it is the highest rated bank offering VA loans.