bank rates

Illinois Deal: 3.375% On A 5/1 ARM

Neighborhood Loans has a great deal on 5-year adjustable-rate mortgages for borrowers in Illinois.

The online lender headquartered in Bloomingdale, Ill., is charging just 3.375% with no points and $795 in fees.

That’s more than half a percentage point lower than the national average of 3.95% for 5-year ARMs.

Principal and interest payments for the first five years would be just $442 a month on every $100,000.

Some lenders offer ARMs with lower rates. But check their interest rate caps before you sign up.

The rates on some bargain-basement loans can go up as much as five percentage points when they reset for the first time.

This mortgage won’t do that.

Its interest rate caps are 2/2/6, which means it can’t go up more than two percentage points the first time it adjusts in five years or two percentage points each year after, and can never go up more than six percentage points.

To qualify for this loan, you need a credit score of 720 or higher. You must also be applying for a conforming loan — one for less than $417,000 to $729,750, depending on where you live.

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Comments (3)
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3 Existing Comments
  1. Kathy O'Gorman said:
    on January 30th at 12:23 pm

    This rate is still available as of Jan. 30.

  2. Kathy at Bankaholic said:
    on February 28th at 10:23 am

    You can still get this rate as of Feb. 28, 2011.

  3. Kathy at Bankaholic said:
    on April 3rd at 04:34 pm

    The rate is still offered as of April 3, 2011.