A new study that compared mortgage products from around the globe found that long-term fixed-rate loans aren’t necessarily the end-all, be-all solution to fix housing.
Per the study, entitled, “International Comparison of Mortgage Product Offerings”, 95 percent of new loans originated in the United States last year were long-term fixed mortgages, compared to just one percent in Spain, two percent in Korea, 10 percent in Canada, 19 percent in the Netherlands, and 22 percent in Japan.
Meanwhile, only five percent were adjustable-rate mortgages, while 92 percent in Australia and Korea were ARMs, along with 91 percent in Ireland, 47 percent in the UK, and 38 percent in Japan.
“By comparing the performance of mortgage products internationally, we see that many countries are experiencing lower default rates than the U.S., despite having a significant share of products such as adjustable rate mortgages and interest only loans,” said Dr. Michael Lea, who conducted the study.
“This indicates the problem with loan design in the U.S. during the crisis was one of a mismatch between borrowers and particular loan designs — not the existence of the loan features themselves. In addition, the lower default rates may reflect stricter enforcement of lender rights as all countries in the survey have recourse lending.”
Lea noted that the wide range of borrowers that exist in the mortgage market require an equally wide range of mortgage program offerings, and argued that a “robust mortgage market” requires a number of different instruments to meet the needs of both borrowers and mortgage lenders.
The survey comes in response to the “Dodd-Frank Bill,” which aims to prohibit prepayment penalties and yield spread premiums, while restricting balloon payments and interest-only periods.
According to the study, these “flexible payment designs” are common in other countries and not associated with higher rates of default.
But there obviously has to be a line, like no more option arms with zero down financing.
It’s that time of the year again, when we take a look at what’s in store for mortgage rates the following year. So without further ado, here is the “2018 mortgage rate forecast” from a variety of different housing and mortgage groups.
Note that these forecasts generally apply to conventional loans backed by Fannie Mae and Freddie Mac. Typically, rates are slightly lower on FHA loans.
2018 Mid-Year Mortgage Rate Update
We’re now roughly midway through 2018
Let’s take a look at which mortgage rate predictions are the most spot on
The 30-year fixed has risen from around 4% to 4.625%-4.75% so far this year
The MBA and NAR are doing the best, but a lot can change in no time at all
Now that we’re about halfway through the year, I figured I’d check in to see which forecast is most on point.
It appears that with the 30-year fixed averaging close to 4.625% and 4.75% as of early August, the estimates from the Mortgage Bankers Association and National Association of Realtors are the most accurate.
The MBA predicted a rate of 4.7% by the third quarter of 2018 and they’ve basically nailed it on the head, which is somewhat unwelcome news for the prospective homeowners and existing borrowers looking to refinance their home loans.
The NAR expected a rate around 4.6%, which is also pretty close to what’s being offered by mortgage lenders these days.
Fannie Mae’s prediction of 4.1% is the worst of the bunch, and while brother Freddie Mac is a bit closer at 4.4%, they’re still off by a sizable margin.
Of course, if you take the time to shop around, there are still plenty of bargains to be had, and some lenders are still offering 30-year fixed rates closer to 4.25% and 4.375%.
However, these lower rates may require that you pay discount points at closing. So be sure to pay attention to closing costs when shopping rates!
2018 Mortgage Rate Forecast from the MBA
We’ll start with the Mortgage Bankers Association, which releases a monthly Mortgage Finance Forecast. In their latest release, they predict where 30-year fixed mortgage rates will go next year and even in 2019 and 2020.
Here’s how they see 2018 shaping up, broken down by quarter:
First quarter 2018: 4.3% Second quarter 2018: 4.5% Third quarter 2018: 4.7% Fourth quarter 2018: 4.8%
All in all, it doesn’t look so bad, though a slow creep from the current ~4% rate to the high-4s could dent some wallets pretty good.
And in 2019, they see rates rising to 4.9%, just shy of that all-too-scary 5% threshold. Don’t ask what they think will happen in 2020. Fine, I’ll tell you, we’re looking at a rate of 5.3%. Yikes!
It’ll be interesting to see how the housing market reacts to these potential rate hikes, with home sales already sluggish at current levels, and home prices pretty high.
2018 Mortgage Rate Forecast from Fannie Mae
While the MBA’s estimate certainly didn’t put us at ease, maybe Fannie Mae’s forecast will be a little rosier. Let’s find out.
First quarter 2018: 4.0% Second quarter 2018: 4.1% Third quarter 2018: 4.1% Fourth quarter 2018: 4.2%
That’s more like it! You gotta love Fannie Mae – they never seem to get too worked up when making their mortgage rate predictions, and 2018 is no different.
In fact, they barely expect mortgage rates to budge next year, with perhaps only a quarter-percent rise throughout the year.
Amazingly, their forecast for 2018 is lower than their 2017 predictions, which had called for rates as high as 4.3%.
In 2019, they’re still playing it cool with relatively flat rates and only a slight rise to 4.3% by that December.
For the record, they’ve nailed it two years in a row, so they might be the horse to go with in 2018 as well. If they’re right again, it’ll be more good news for both prospective and existing homeowners.
2018 Mortgage Rate Forecast from Freddie Mac
Now let’s take a look at brother Freddie Mac’s forecast, which you might want to pay close attention to seeing that they release the bellwether mortgage rate survey every week.
First quarter 2018: 4.1% Second quarter 2018: 4.3% Third quarter 2018: 4.4% Fourth quarter 2018: 4.6%
Okay Freddie Mac, we can deal with that. A mere 10-basis point climb in the first quarter, followed by similarly reasonable increases in subsequent quarters. Yeah, that probably works for most folks.
A 4.6% rate at the end of 2018 certainly isn’t something to get upset about. As for 2019, you’re looking at a still decent 4.7% 30-year fixed rate.
2018 Mortgage Rate Forecast from the NAR
First quarter 2018: 4.2% Second quarter 2018: 4.5% Third quarter 2018: 4.6% Fourth quarter 2018: 5%
Then there’s the National Association of Realtors, a group that always seems to fear for the worst when it comes to a market forecast.
I don’t think they’ve ever predicted things to just remain where they are. They seem to sell urgency, which is important when you’re trying to get people into homes.
Anyway, I now have their full quarterly breakdown, as seen above, which counters what chief economist Lawrence Yun said late last year in a release that “mortgage rates will gradually climb towards 4.50 percent by the end of 2018.”
The NAR National Housing Forecast actually calls for an average rate of 4.2% in the beginning of the year, with rates reaching 5.0% by the end of the 2018.
If you whip out a mortgage calculator you probably won’t be thrilled with the monthly payment increase at 5%, though it does depend on the loan amount. And it might not even happen.
Last year, they expected the 30-year fixed to climb to 4.6% by the end of 2017, which as you may know, didn’t transpire.
They seem to make some comparatively loose predictions, often going with whatever the next highest threshold is in terms of rate changes, though they’ve backed away from their near-5% estimate held in 2016.
My point is it seems more psychological than it is scientific, and perhaps that’s a good thing if you want rates to stay in the 4% realm.
2018 Mortgage Rate Forecast from Zillow
We’ve also got a prediction from Zillow, which recently surveyed some 100 housing experts, market strategists, and economists about mortgage rates in 2018 (among other things).
That survey’s median prediction is 4.50% on the 30-year fixed, with a low-end prediction (25th percentile) of 4.28% and a high-end prediction (75th percentile) of 4.70%.
Depending on who’s right, if anyone, rates could move as little as a quarter of a percent to nearly a point higher next year.
I also stumbled upon the National Association of Home Builders (NAHB) interest rate forecast, which sees the 30-year fixed rising to 4.20% next year and 4.67% in 2019.
The chart below from CoreLogic is an average of all those forecasts, which points to a rate of 4.6% by December 2018. The more pessimistic MBA forecast might be pushing it higher.
In summary, 2018 is looking like it’ll go relatively easy on mortgage rates, assuming the consensus is correct. Of course, anything can happen and the general trend seems to be higher price forecasts rather than lower.
But if any rate movement remains muted, it should help buyers contend with rising home prices, and also keep mortgage refinancing incentives alive for those looking to save on their existing mortgages.
If rates really jump, I expect more borrowers to look at adjustable rate mortgages, or to consider a home equity loan as opposed to a cash out refinance. It could also put pressure on home sales and the housing market as a whole.
National mortgage rates were mostly lower compared to a week ago, according to data compiled by Bankrate. Rates for 30-year fixed, 15-year fixed and jumbo loans moved lower, while rates for adjustable rate mortgages rose.
The Federal Reserve has lifted rates 10 times in a row, most recently at its May 3 meeting. Rates now are at a 15-year high, but the consensus is that inflation is finally cooling and the central bank might halt raising rates.
”Mortgage rates have settled into a new normal of around 6.5 percent on a 30-year fixed-rate loan,” says Lisa Sturtevant, chief economist at Bright MLS, a large multiple listing service in the Middle Atlantic region. ”With growing recession risks, we could see mortgage rates dip lower, but we will not be returning to the 3 percent level seen during the height of the pandemic.”
Rates last updated on June 7, 2023.
The rates listed above are marketplace averages based on the assumptions indicated here. Actual rates listed across the site may vary. This story has been reviewed by Suzanne De Vita. All rate data accurate as of Wednesday, June 7th, 2023 at 7:30 a.m.
>>Check out historical mortgage interest rate trends, from the 70s to today
You can save thousands of dollars over the life of your mortgage by getting at least three rate quotes. Comparing mortgage offers from multiple lenders is always a smart move, but shopping around grew especially critical during the interest rate run-up of 2022, according to research by mortgage giant Freddie Mac. It found the payoff for bargain-huntng borrowers doubled last year.
“All too often, some homeowners take the path of least resistance when seeking a mortgage, in part because the process of buying a home can be stressful, complicated and time-consuming,” says Mark Hamrick, senior economic analyst for Bankrate. “But when we’re talking about the potential of saving a lot of money, seeking the best deal on a mortgage has an excellent return on investment. Why leave that money on the table when all it takes is a bit more effort to shop around for the best rate, or lowest cost, on a mortgage?”
Mortgage rates for home purchase
30-year mortgage rate dips, -0.11%
The average 30-year fixed-mortgage rate is 7.02 percent, down 11 basis points since the same time last week. A month ago, the average rate on a 30-year fixed mortgage was lower, at 6.89 percent.
At the current average rate, you’ll pay $666.65 per month in principal and interest for every $100,000 you borrow. That’s a decline of $7.41 from last week.
15-year fixed mortgage falls,-0.11%
The average rate you’ll pay for a 15-year fixed mortgage is 6.38 percent, down 11 basis points since the same time last week.
Monthly payments on a 15-year fixed mortgage at that rate will cost roughly $865 per $100,000 borrowed. The bigger payment may be a little harder to find room for in your monthly budget than a 30-year mortgage payment would, but it comes with some big advantages: You’ll come out several thousand dollars ahead over the life of the loan in total interest paid and build equity much more rapidly.
5/1 ARM rate rises, +0.02%
The average rate on a 5/1 adjustable rate mortgage is 6.06 percent, ticking up 2 basis points over the last 7 days.
Adjustable-rate mortgages, or ARMs, are home loans that come with a floating interest rate. In other words, the interest rate can change intermittently throughout the life of the loan, unlike fixed-rate mortgages. These types of loans are best for those who expect to sell or refinance before the first or second adjustment. Rates could be substantially higher when the loan first adjusts, and thereafter.
While borrowers shunned ARMs during the pandemic days of super-low rates, this type of loan has made a comeback as mortgage rates have risen.
Monthly payments on a 5/1 ARM at 6.06 percent would cost about $603 for each $100,000 borrowed over the initial five years, but could increase by hundreds of dollars afterward, depending on the loan’s terms.
Jumbo mortgage interest rate moves down, -0.08%
The average rate for the benchmark jumbo mortgage is 7.03 percent, a decrease of 8 basis points over the last week. A month ago, the average rate was below that, at 6.93 percent.
At the average rate today for a jumbo loan, you’ll pay $667.32 per month in principal and interest for every $100,000 you borrow. That represents a decline of $5.39 over what it would have been last week.
Rate review: How mortgage rates have shifted
30-year fixed mortgage rate: 7.02%, down from 7.13% last week, -0.11
15-year fixed mortgage rate: 6.38%, down from 6.49% last week, -0.11
5/1 ARM mortgage rate: 6.06%, up from 6.04% last week, +0.02
Jumbo mortgage rate: 7.03%, down from 7.11% last week, -0.08
Refinance rates
30-year mortgage refinance drops, –0.08%
The average 30-year fixed-refinance rate is 7.11 percent, down 8 basis points over the last seven days. A month ago, the average rate on a 30-year fixed refinance was lower, at 7.02 percent.
At the current average rate, you’ll pay $672.71 per month in principal and interest for every $100,000 you borrow. That’s down $5.40 from what it would have been last week.
Where mortgage rates are headed
The days of sub-3 percent mortgage interest on the 30-year fixed are behind us, and rates have so far risen beyond 7 percent in 2022.
“Low interest rates were the medicine for economic recovery following the financial crisis, but it was a slow recovery so rates never went up very far,” says McBride. “The rebound in the economy, and especially inflation, in the late pandemic stages has been very pronounced, and we now have a backdrop of mortgage rates rising at the fastest pace in decades.”
Comparing different mortgage terms
The 30-year fixed-rate mortgage is the most popular loan for homeowners. This mortgage has a number of advantages. Among them:
Lower monthly payment: Compared to a shorter term, such as 15 years, the 30-year mortgage offers lower payments spread over time.
Stability: With a 30-year mortgage, you lock in a consistent principal and interest payment. Because of the predictability, you can plan your housing expenses for the long term. Remember: Your monthly housing payment can change if your homeowners insurance and property taxes go up or, less likely, down.
Buying power: With lower payments, you can qualify for a larger loan amount and a more expensive home.
Flexibility: Lower monthly payments can free up some of your monthly budget for other goals, like saving for emergencies, retirement, college tuition or home repairs and maintenance.
Strategic use of debt: Some argue that Americans focus too much on paying down their mortgages rather than adding to their retirement accounts. A 30-year fixed mortgage with a smaller monthly payment can allow you to save more for retirement.
That said, shorter-term loans have gained popularity as rates have been historically low. Although they have higher monthly payments compared to 30-year mortgages, there are some big benefits if you can afford the upfront costs. Shorter-term loans can help you achieve:
Greatly reduced interest costs: Because you pay off the loan faster, you’ll be able to pay less interest overall.
Lower interest rate: On top of less time for that interest to compound, most lenders price shorter-term mortgages with lower rates.
Build equity faster: The faster you pay off your mortgage, the faster you’ll own value in your home outright. That’s especially handy if you want to borrow against your property to fund other spending.
Debt-free sooner: A shorter-term mortgage means you’ll own your house free and clear sooner than you would with a longer-term loan.
How do mortgage rates affect homebuyers?
In a housing boom, low mortgage rates can present pros and cons for borrowers. One pro: Low rates give borrowers more buying power. A $300,000 loan at 4 percent equates to a monthly payment of $1,432. If rates fall to 3 percent, the payment plunges to $1,265.
However, that sort of decline also can help push up home prices — and values indeed have jumped in recent months.
Here’s an example to show how soaring home prices and plunging mortgage rates can have offsetting effects. Let’s say you chose not to buy a $300,000 home a year ago, when the 30-year mortgage rate was around 3.75 percent. Your 20 percent down payment would’ve been $60,000 and your monthly payment would’ve been $1,111.
The price of the same house has jumped to $335,000 today. However, you can get a 30-year mortgage at 3 percent. As a result, your monthly payment rises only slightly, to $1,130. However, you’ll have to come up with an extra $7,000 to make a 20 percent down payment.
The Sunshine State is a great place to call home. Whether you’re an individual or small business owner, rest assured there are many banks available to help you meet your financial goals.
While some banks have brick-and-mortar locations in Miami, Tampa, Jacksonville, Orlando, and other parts of the state, others are online-only, meaning you’ll need to use an online portal or mobile banking app to manage your accounts.
15 Best Banks in Florida
We’ve done all the research and compiled this list of the best banks in Florida so you can make the most informed decision for your unique situation.
1. Huntington Bank
Huntington Bank has been around since 1866 and primarily services Southwest Florida. Its solo Florida branch can be found in Naples but you can bank from anywhere, thanks to a robust digital banking program.
Huntington’s checking accounts come with many benefits, such as 24-hour grace overdraft fee relief, platinum debit cards, mobile pay, and early pay. You can make deposits to them directly or through an ATM or mobile device.
If you’re looking for the ideal savings account, you may choose from several money market accounts, IRAs and other retirement accounts, and certificates of deposit. Huntington serves small business owners in Florida as well through business checking accounts, business credit cards, business loans, insurance products, and more.
2. Chime
Chime isn’t a traditional bank or credit union. However, it’s a mobile banking app you can take advantage of in Florida. It made its debut in 2013 and offers online banking services through Bancorp Bank, N.A. and Stride Bank.
With the Chime Checking account, you can enjoy early direct deposit, automated savings tools, free debit card replacement, and access to over 60,000 fee free ATMs across the county. If you opt for the Chime High-Yield Savings account, you’ll lock in a competitive interest rate and won’t have to pay monthly fees or meet a minimum balance requirement. Plus, there is no cap on how much interest you may earn.
3. Revolut
Revolut is another non-traditional banking opinion that serves Floridians from the U.K. With Revolut, you can access your paycheck up to two days early and won’t be charged fees for withdrawals at 55,000 ATMs across the nation.
If you consider yourself an avid traveler, you’re sure to appreciate its travel perks, such as currency exchange, overseas health insurance, delayed baggage and flight insurance, and the ability to make purchases in numerous currencies.
With the Smart Delay feature, you’ll get to hang out in airport lounges if your flight is delayed. Additionally, Revolut offers budgeting and analytics tools so you can keep your finances in check as well as cash back when you make purchases at select retailers.
4. Ally Bank
Ally Bank is an online bank with rates that are about 10 times the national average. Even though there are no Ally branches in Florida, it’s a solid pick if you’d like your money to grow quickly. Unlike most brick-and-mortar financial institutions in the Sunshine State, Ally doesn’t charge monthly fees or impose minimum balance requirements.
You can open an Ally account with any deposit amount. In addition to a savings account, you may take advantage of an interest bearing checking account and credit cards with rewards like cash back and travel points. We can’t forget Ally’s retirement and investment services, which include self-directed trading, robo portfolios, IRAs, stocks, commission-free ETFs, and even cryptocurrency.
5. Regions Bank
Regions Bank is a regional bank with more than 300 branches and 500 ATMs in Florida. If you’re an avid traveler, rest accrued the bank also has many locations in the Midwest, South, and Texas. Regions stands out from other, larger financial institutions for its checking account rewards program and LifeGreen Savings account, which is free of monthly maintenance fees and service fees.
In addition to the LifeGreen Savings account, you may opt for a Regions Savings account. This account offers a discount on a safe deposit box, a minor account for children under 18, and the Now Savings account, which is specifically for those with a Regions prepaid Visa card.
Furthermore, Regions offers CDs with terms that range from seven days and 72 months. Other perks include a robust mobile app and 24/7 customer service through an online secure messaging system.
6. Bank of America
Bank of America is a large bank with nearly 500 branches throughout the Sunshine State and no shortage of ATMs across the country. Thanks to its handy mobile app, you can cash checks, pay bills, and manage your accounts while you’re on the go. Speaking of accounts, there’s something for everyone at Bank of America.
The Bank of America Advantage Banking account is a checking account with three features: SafeBalance, Advantage Plus, and Advantage Relationship. With SafeBalance, which is ideal for students, you don’t have to worry about overdraft fees.
Advantage Plus offers several ways to waive monthly fees and Advantage Relationship rewards you with interest and other perks for higher balances. In addition, Bank of America boasts credit cards with generous sign on bonuses for new checking account customers, a variety of mortgages, and investment management services.
7. Chase Bank
Chase Bank is a part of JPMorgan Chase and has more than 400 branches in Florida. With Chase, you can expect a large ATM network of over 16,000 ATMs across the country and a number of online and mobile banking tools. If you decide to become a Chase customer, you’ll have access to two savings accounts: the Chase Savings account and the Chase Premier Savings account.
While Chase Savings comes with a low monthly fee, the Chase Premier Savings is a solid pick if you’re looking for a competitive interest rate on a large balance. When it comes to checking accounts, Chase offers several options, like the Chase Total Checking account and the Chase Sapphire Checking account with perks like attractive interest rates and no ATM fees.
Note that the Chase Sapphire Checking account is only available for Sapphire members with an average balance of $75,000 average balance.
8. Fifth Third Bank
Fifth Third Bank is a national bank that was recognized by J.D. Power for the great banking experience it provides in Florida. It has numerous branches in Bradenton, Lakeland, Apopka, Orlando, and other cities throughout the state.
You can open a checking or online savings account without having to worry about an opening deposit requirement and won’t be charged a monthly fee for any checking account.
If you do face a fee for a savings account, there are several ways to get it waived. Fifth Third also offers an extensive ATM network, which will give you access to more than 50,000 ATMs across the country.
Additionally, if you get paid via direct deposit in a Fifth Third account, you may access your paycheck up to two days early. For questions and concerns, you can reach out to Fifth Third’s customer service team 6-days a week.
9. TIAA Bank
TIAA Bank is the largest regional bank in the Sunshine State. You can find its financial centers in Jacksonville, Clearwater, Boca Raton, Coral Gables, Fort Lauderdale, Naples, and Fort Myers.
In addition to a personalized banking experience, this Florida bank provides a checking account featuring low fees and no transaction limits, a savings account with no monthly account fees and competitive rates, and three different types of CDs.
Plus, the bank is digitally savvy and provides online banking tools so you can keep tabs on your accounts, set a budget and savings goals, make transfers, pay bills, and send money with Zelle. If you’re interested in investing, TIAA Bank will give you the opportunity to invest in precious metals and foreign currencies.
10. Capital One
Capital One is a national bank that’s known for its flagship 360 Checking account. With a 360 Checking account, you can enjoy an attractive interest rate, access to more than 70,000 fee-free ATMs across the U.S., and 24/7 mobile banking.
You also won’t be on the hook for any monthly fees and Capital One will automatically decline any transitions that overdraw your balance for no extra charge.
Even though Capital One does not have any physical branches in Florida, you can apply for and manage your accounts online. Other benefits of Capital One include early paycheck, which can allow you to receive your incoming funds up to two days early, free financial coaching sessions, and a well-designed mobile app.
11. Raymond James Bank
Raymond James Bank is based in Florida. It’s an affiliate of Raymond James, which is a financial company with headquarters and one branch location in St. Petersburg. Through its Enhanced Savings Program, you’ll be able to earn interest on certain cash if you link your brokerage account to a high-yield Raymond James bank account.
You can also receive yields that are higher than traditional checking or savings accounts without bank fees or holding periods. Raymond James also offers a plethora of mortgage products, such as fixed rate and adjustable rate mortgages, interest-only mortgages, jumbo mortgages, pledged securities mortgages, construction mortgages, and home equity lines.
12. PNC Bank
PNC Bank is one of the largest traditional banks in the U.S. with nearly 200 branches in Florida. It offers the PNC Standard Savings account, a children’s savings account, and Virtual Wallet, which pairs a traditional checking and savings account. If you decide on the Virtual Wallet, you can enjoy a generous sign-up bonus and no fees.
When it comes to CDs, you can choose from a plethora of options including fixed rate CDs, ready access CDs, fixed rate IRA CDs, callable CDs, variable CDs, and stepped rate CDs. Additionally, the bank goes the extra mile with free budgeting tools and competitive interest rates for account holders that meet certain criteria. As an added bonus, PNC has a reputation for stellar customer service.
13. Discover Bank
Discover Bank is known for its credit cards. However, it’s an online bank with other banking products for Florida residents. Not only does Discover offer cash back on debit card purchases, it doesn’t charge monthly maintenance fees, insufficient funds fees, or overdraft fees.
While there are no branch locations in Florida, Discover has an intuitive mobile banking app and is part of a large ATM network of more than 60,000 fee free ATMs. In addition to checking accounts and savings accounts, you can turn to Discover for credit cards with various rewards and loans, like personal loans, student loans, home equity loans, and mortgage refinancing.
14. Wells Fargo
Wells Fargo is a major financial institution with more than 600 branches and thousands of ATMs throughout Florida. At Wells, you’ll find a full suite of banking products and services, such as checking accounts, savings accounts, certificates of deposit (CDs), credit cards, personal loans, and home loans.
You can choose from a basic, no-frills free checking account or opt for an interest checking account or a checking account for a teen or young adult. There are also a few saving account options, like a goal-based savings account and a high-interest savings account.
While you can visit a local branch if you prefer an in-person banking experience, you may also take advantage of online and mobile banking. In addition, Wells offers other conveniences like Zelle money transfers and online bill pay.
15. My eBanc
My eBanc is an online savings bank that serves customers in Florida and other parts of the U.S. It’s part of Banco Bradesco, a large bank in Latin America, which is an FDIC insured institution chartered in Florida. As a My eBanc customer, you’ll have access to several products that can help you save money and achieve various financial goals.
The SuperSaver Money Market account requires a $5,000 minimum deposit but offers perks such as a competitive interest rate, unlimited deposits, money management tools, and mobile check deposit. Other popular accounts you might consider include the eRelationship Savings account and Advantage Checking account. My eBanc also offers online time deposits with terms between 6 months and 36 months.
Types of Banks in Florida
The ideal bank depends on your particular banking preferences. In the Sunshine State, most banks are either national banks, regional banks, community banks, or online banks. Let’s take a closer look at how each banking option works.
National Banks
National banks are common in larger cities throughout Florida. If you’re looking for a wide range of banking products, you’re sure to find them at national banks, such as Wells Fargo, PNC Bank, and Wells Fargo.
Regional Banks
Regional banks have branches in certain regions of the U.S. In most cases, these banks are mid sized and offer a good mix of personal banking and business banking products. A few examples of regional banks in Florida include Regions Bank and TIAA Bank.
Community Banks
Community banks serve customers in specific geographic areas. Also known as local banks, community banks are similar to credit unions in that they focus on personal customer service and community outreach. Community Bank of the South and Mainstreet Community Bank of Florida are two community banks in Florida.
Online Banks
Online banks don’t have physical locations in Florida but serve individuals and businesses with online banking services. Since they have less overhead costs than banks with brick-and-mortar locations, online banks tend to offer more competitive interest rates and minimal to no fees.
Bottom Line
If you live or work in Florida, there are many reputable banking options available to you. As you explore various banks and credit unions, consider their accounts and services, fees, interest rates, customer service, and perks. Good luck in your search for the best bank in Florida.
Frequently Asked Questions
What are the largest banks in Florida?
The largest banks in the Sunshine State include Bank of America, Wells Fargo, and Fifth Third Bank. These banks have many branches throughout the state.
Should I choose an online bank?
If you’re comfortable with the internet or mobile apps, online banking from a place like Ally Bank and CIT Bank can be a smart choice. This is particularly if you can find the products you need with competitive interest rates and low fees.
What is the best bank for in person service?
Florida offers many great options if you prefer an in-person banking experience. You might want to consider Regions Bank, TIAA Bank, or Raymond James Bank.
How do I open a bank account in Florida?
Most banks allow you to open a deposit account online, from the comfort of your own home or office. Be prepared to make a minimum opening deposit and provide basic personal information, like your name and Social Security number.
Do Florida banks charge fees?
In most cases, larger brick and mortar banks require customers to pay fees like monthly service fees, wire transfer fees, overdraft fees, excessive withdrawal fees, ATM fees, and late payment fees. You might be able to get them waived, depending on the bank and the type of account you open.
What is the best local bank in Florida?
There are many local banks in the Sunshine State that each come with their own benefits and drawbacks. Several options you might want to explore include Florida Shores Bank, Seaside Bank and Trust, and One Florida Bank.
What is the difference between a bank and a credit union?
Anyone can become a customer at a bank. If you want to take advantage of the products and services at a credit union, you’ll need to meet certain criteria and join it.
National mortgage rates were mostly lower compared to a week ago, according to data compiled by Bankrate. Rates for 30-year fixed, 15-year fixed and jumbo loans moved lower, while rates for adjustable rate mortgages rose.
The Federal Reserve has raised rates 10 times in a row, most recently at its May 3 meeting. Rates now are at a 15-year high, but the consensus is that inflation is finally cooling and the central bank might halt raising rates.
”Mortgage rates have settled into a new normal of around 6.5 percent on a 30-year fixed-rate loan,” says Lisa Sturtevant, chief economist at Bright MLS, a large multiple listing service in the Middle Atlantic region. ”With growing recession risks, we could see mortgage rates dip lower, but we will not be returning to the 3 percent level seen during the height of the pandemic.”
Rates as of June 5, 2023.
These rates are marketplace averages based on the assumptions here. Actual rates listed across the site may vary. This story has been reviewed by Suzanne De Vita. All rate data accurate as of Monday, June 5th, 2023 at 7:30 a.m.
>>See historical mortgage interest rate movements
You can save thousands of dollars over the life of your mortgage by getting at least three rate quotes. Comparing mortgage offers from multiple lenders is always a smart move, but shopping around grew especially critical during the interest rate run-up of 2022, according to research by mortgage giant Freddie Mac. It found the payoff for bargain-huntng borrowers doubled last year.
“All too often, some homeowners take the path of least resistance when seeking a mortgage, in part because the process of buying a home can be stressful, complicated and time-consuming,” says Mark Hamrick, senior economic analyst for Bankrate. “But when we’re talking about the potential of saving a lot of money, seeking the best deal on a mortgage has an excellent return on investment. Why leave that money on the table when all it takes is a bit more effort to shop around for the best rate, or lowest cost, on a mortgage?”
Mortgage rates for home purchase
30-year mortgage falls, -0.20%
The average rate you’ll pay for a 30-year fixed mortgage is 6.99 percent, down 20 basis points since the same time last week. A month ago, the average rate on a 30-year fixed mortgage was lower, at 6.87 percent.
At the current average rate, you’ll pay $664.63 per month in principal and interest for every $100k you borrow. That’s lower by $13.48 than it would have been last week.
The 30-year mortgage is the most popular option for borrowers. It has a number of advantages. Among them:
Lower monthly payment. Compared to a shorter-term mortgage, such as 15 years, the 30-year mortgage offers more affordable monthly payments spread over time.
Stability. With a 30-year mortgage, you lock in a consistent principal and interest payment. Because of the predictability, you can plan your housing expenses for the long term. Remember: Your monthly housing payment can change if your homeowners insurance and property taxes go up or, less likely, down.
Buying power. With lower payments, you can qualify for a larger loan amount and a more expensive home.
Flexibility. Lower monthly payments can free up some of your monthly budget for other goals, like building an emergency fund, contributing to retirement or college tuition, or saving for home repairs and maintenance.
Strategic use of debt. Some argue that Americans focus too much on paying down their mortgages rather than adding to their retirement accounts. A 30-year fixed mortgage with a smaller monthly payment can allow you to save more for retirement.
15-year mortgage moves lower,-0.24%
The average rate you’ll pay for a 15-year fixed mortgage is 6.37 percent, down 24 basis points since the same time last week.
Monthly payments on a 15-year fixed mortgage at that rate will cost around $864 per $100k borrowed. Yes, that payment is much bigger than it would be on a 30-year mortgage, but it comes with some big advantages: You’ll come out several thousand dollars ahead over the life of the loan in total interest paid and build equity much more quickly.
5/1 ARM rate moves upward, +0.02%
The average rate on a 5/1 adjustable rate mortgage is 6.02 percent, climbing 2 basis points over the last week.
Adjustable-rate mortgages, or ARMs, are mortgage terms that come with a floating interest rate. In other words, the interest rate can change periodically throughout the life of the loan, unlike fixed-rate loans. These loan types are best for people who expect to refinance or sell before the first or second adjustment. Rates could be substantially higher when the loan first adjusts, and thereafter.
While borrowers shunned ARMs during the pandemic days of super-low rates, this type of loan has made a comeback as mortgage rates have risen.
Monthly payments on a 5/1 ARM at 6.02 percent would cost about $601 for each $100,000 borrowed over the initial five years, but could ratchet higher by hundreds of dollars afterward, depending on the loan’s terms.
Jumbo mortgage declines, -0.22%
The average rate you’ll pay for a jumbo mortgage is 6.98 percent, a decrease of 22 basis points over the last week. This time a month ago, the average rate for jumbo mortgages was lesser, at 6.94 percent.
At today’s average jumbo rate, you’ll pay $663.96 per month in principal and interest for every $100,000 you borrow. Compared with last week, that’s $14.83 lower.
Rate review: How interest rates have shifted over the past week
30-year fixed mortgage rate: 6.99%, down from 7.19% last week, -0.20
15-year fixed mortgage rate: 6.37%, down from 6.61% last week, -0.24
5/1 ARM mortgage rate: 6.02%, up from 6.00% last week, +0.02
Jumbo mortgage rate: 6.98%, down from 7.20% last week, -0.22
Refinance rates
Current 30 year mortgage refinance rate trends down, –0.15%
The average 30-year fixed-refinance rate is 7.10 percent, down 15 basis points from a week ago. A month ago, the average rate on a 30-year fixed refinance was lower, at 7.01 percent.
At the current average rate, you’ll pay $672.03 per month in principal and interest for every $100,000 you borrow. Compared with last week, that’s $10.15 lower.
Where are mortgage rates headed?
The days of sub-3 percent mortgage interest on the 30-year fixed are behind us, and rates have so far risen beyond 7 percent in 2022.
“Low interest rates were the medicine for economic recovery following the financial crisis, but it was a slow recovery so rates never went up very far,” says McBride. “The rebound in the economy, and especially inflation, in the late pandemic stages has been very pronounced, and we now have a backdrop of mortgage rates rising at the fastest pace in decades.”
Comparing mortgage options
The 30-year fixed-rate mortgage is the most popular option for homeowners, and this type of loan has a number of advantages, including:
Lower monthly payment: Compared to a shorter term, such as 15 years, the 30-year mortgage offers lower payments spread over time.
Stability: With a 30-year mortgage, you lock in a consistent principal and interest payment. Because of the predictability, you can plan your housing expenses for the long term. Remember: Your monthly housing payment can change if your homeowners insurance and property taxes go up or, less likely, down.
Buying power: With lower payments, you can qualify for a larger loan amount and a more expensive home.
Flexibility: Lower monthly payments can free up some of your monthly budget for other goals, like saving for emergencies, retirement, college tuition or home repairs and maintenance.
Strategic use of debt: Some argue that Americans focus too much on paying down their mortgages rather than adding to their retirement accounts. A 30-year fixed mortgage with a smaller monthly payment can allow you to save more for retirement.
That said, shorter-term loans have gained popularity as rates have been historically low. Although they have higher monthly payments compared to 30-year mortgages, there are some big benefits if you can afford the upfront costs. Shorter-term loans can help you achieve:
Greatly reduced interest costs: Because you pay off the loan faster, you’ll be able to pay less interest overall.
Lower interest rate: On top of less time for that interest to compound, most lenders price shorter-term mortgages with lower rates.
Build equity faster: The faster you pay off your mortgage, the faster you’ll own value in your home outright. That’s especially handy if you want to borrow against your property to fund other spending.
Debt-free sooner: A shorter-term mortgage means you’ll own your house free and clear sooner than you would with a longer-term loan.
What are current mortgage rates?
Mortgage rates have been volatile because of the COVID-19 pandemic. Generally, though, rates have been low. Mortgage rates are rising and falling from week to week, as lenders are inundated with forbearance and refinance requests. In general, however, rates are consistently below 4 percent and even dipping below 3%. This is an especially good time for people with good to excellent credit to lock in a low rate for a purchase loan. However, lenders are also raising credit standards for borrowers and demanding higher down payments as they try to dampen their risks.
Save more, spend smarter, and make your money go further We all know about supply and demand in relation to the economy, but have you heard of a housing bubble? Perhaps you’ve heard the term as it relates to the 2008 market crash, or perhaps you’ve heard whispers that we’re in another housing bubble again. … [Read more…]
The Federal Reserve today approved an interim rule that will require mortgage lenders to disclose examples of how a mortgage loan’s interest rate and monthly payment may change.
This is pretty important seeing that monthly payments may become unaffordable if interest rates rise significantly from the time the loan is taken out to the month of the first adjustment.
ARM Warnings Will Be the Norm
Because ARMs were a major driver of the housing crisis
The Fed wanted to make sure new protections were in place
To ensure borrowers are aware of what they’re getting into
Of course it still requires borrowers to actually read their paperwork!
Beginning on October 1, 2011, banks and mortgage lenders must alert borrowers to the risk of payment increases before they agree to take out mortgage loans with variable rates or terms, otherwise known as adjustable-rate mortgages.
They will be required to include a payment summary in the form of a table, including the initial rate, maximum rate that can occur in the first five years, and the “worst case” rate possible over the life of the loan, along with corresponding monthly mortgage payments.
Pay Attention to Your Projected Payments
As you can see from the sample table above, a $4,000 monthly payment could turn into a nearly $6,000 payment over time, assuming the borrower kept the loan, and projections hold true.
You can find this information on your Loan Estimate (LE) or Closing Disclosure (CD) if you’re taking out an ARM and curious what may happen to the monthly payment.
Just keep in mind that these are estimates and may not actually materialize. As mentioned, a lot of borrowers sell their homes or refinance their mortgages before the loans actually adjust.
“This interim rule clarifies that creditors’ disclosure should reflect the first rate adjustment for a “5/1 ARM” loan because the new rate typically becomes effective within 5 years after the first regular payment due date,” the Fed said in a release.
“Today’s interim rule also corrects the requirements for interest-only loans to clarify that creditors’ disclosures should show the earliest date the consumer’s interest rate can change rather than the due date for making the first payment under the new rate.”
Additionally, it clarifies which mortgage types are covered by the special disclosure requirements, including loans with minimum payment options that cause the loan balance to increase, such as teaser rates and negative amortization loans.
Of course, the impact of this rule will probably be minimal, given the fact that it’ll end up somewhere in a pile of paperwork given to borrowers at loan origination.
That, along with the fact adjustable-rate mortgages only account for about five percent of market share these days now that fixed mortgages have taken center stage.
The VA streamline refinance is the quickest, cheapest, and most beneficial type of refinance for veterans who currently have a VA home loan. VA refinance rates are at historic lows. If you are interested in reducing your interest rate and monthly payment, it’s worthwhile to check current VA streamline rates.
The VA streamline is one of the only refinance programs available in 2023 that allow you to qualify without income or bank account verification. It’s available to those with less than perfect credit. It is one of today’s quickest and easiest refinance options.
Check today’s VA streamline refinance rates by completing this quick online form.
What is a VA Streamline Refinance Loan?
The VA streamline helps veterans lower their mortgage rate and payments. When rates are low like they are now, veterans can refinance into a new loan based on today’s rates, and often reduce their monthly payment quickly and easily.
This loan type, also called the Interest Rate Reduction Refinancing Loan (IRRRL) eliminates many of the roadblocks that hold up applicants on other types of refinances. The VA Streamline is much easier because:
No paystubs or W2s are required
No bank statements are required
No home appraisal is required
There is no loan-to-value limitation because no appraisal or value is required.
Underwater homes are eligible
The required funding fee is lower than for VA purchase loans
Closing costs can be wrapped into the new loan, meaning little or no out-of-pocket expenses
Get a VA streamline rate quote here, no obligation.
Why is this loan so easy to obtain? Homeowners with a VA loan are more likely to make payments on time if their payments are lower. It benefits everyone when veterans have affordable mortgage payments.
Current VA Refinance Rates
VA streamline refinance rates are at historic lows. Many Veterans who have purchased or refinanced a VA home loan in the past few years should check today’s VA rates to make sure they have the absolute lowest rate and monthly payment possible.
Click here for a free VA streamline rate quote.
Eligibility
If you’re interested in a VA Streamline (IRRRL) you must currently have a VA loan. Your mortgage professional will pull a Prior Loan Validation from VA’s website to prove current VA loan status. There are some additional requirements.
On-Time Payments
In addition, you are required to have made on-time payments over the past year, with no more than one payment that was 30+ days late in the past 12 months. If you did have a late payment, say, 8 months ago, you may want to wait 4 months before applying.
The VA Streamline Refinance Must Improve Veteran’s Situation
The VA streamline has to put the borrower in a better financial situation. VA lenders may only approve streamline refinances that help the veteran.
The new payments on the VA streamline must be lower than your current payments. There are a few exceptions, like when you:
Refinance an adjustable rate mortgage (ARM) to a fixed rate mortgage.
Refinance into a shorter term
Finance energy efficient improvements into the VA streamline
In all cases except for an ARM refinancing into a fixed rate, the interest rate must decrease.
Check VA streamline refinance rates here.
To prove the benefit of the refinance, your lender will provide you with a form stating the interest rate and payment of your current loan compared to the rate and payment of the new loan. The form will also state how long it will take the refinance to pay for itself. For instance, if the refinance will cost you $3000 in closing costs, but you are saving $300 per month, you will make back the cost of the refinance in 10 months. Be sure to review this form to make sure you are receiving an adequate benefit from the refinance. Talk to one of our VA experts to determine your refinance payback time frame.
Occupancy
You must certify that you previously occupied the home that you are refinancing with a VA streamline. Those applying for a VA streamline are more likely to qualify if they currently live in the home.
There are still instances where you may still qualify if you don’t live in the home. For example, if you lived in the home, then relocated and rented it out, you still may be able to apply for a VA streamline. Speak with your lender for more information.
VA Streamline Funding Fee
The VA funding fee is required on most purchase and refinance VA loans to defray the costs of the VA home loan program. In most cases, the VA Streamline funding fee is 0.50% of the new loan amount. This fee can be financed into the loan so that the veteran does not have to pay it at closing of the loan.
Check today’s VA rates.
The fee is waived for veterans who are disabled due to service-related injuries. The VA makes this determination and provides it to the lender.
The 0.50% fee is much less than the 2.15% or 3.3% usually required for purchase or VA cash out refinance loans.
Subsequent Use
The VA streamline is not viewed as a subsequent use of your VA home loan benefit. You will not incur the 3.3% subsequent use fee because you used the VA streamline refinance program.
Entitlement
This loan does not use any of your VA home loan entitlement, nor do you have to prove remaining entitlement to obtain a VA streamline. Your remaining VA entitlement after purchase of the home, if any remains, does not change when you obtain a VA streamline.
Loan Terms and VA Streamlines
As discussed previously, your VA loan term may decrease, for instance, from 30 years to 15 years. In this case, it’s OK that your payment increases.
You can also refinance a 15 year loan into a longer term loan. However, keep in mind that the most your loan term can increase is 10 years. So if you currently have a 15 year term, the longest loan you can refinance into will be 25 years.
Apply for a VA Streamline
Complete a short online form to get a free rate quote and see how much you can save.
Can I refinance my Home if it’s Underwater?
Yes. The VA streamline does not require an appraisal, therefore no value is established for the property. The basis for the loan is the existing VA loan, not the current value of the property.
Do lenders impose additional rules for VA streamlines?
Yes. Often, lenders will impose “overlays,” which are additional guidelines on top of VA’s requirements. Each lender has the right to establish their own standards for lending on VA loans.
For instance, the VA does not require an appraisal or credit report. But almost all lenders require a credit report, and many require an appraisal for a VA streamline. If you are worried about the value of your home or the cost of the appraisal, find a lender who will complete the loan without an appraisal.
Do I need my COE for a streamline?
No. Your Certificate of Eligibility (COE) is needed for your VA home purchase, but not for a streamline. Since you already have a VA loan, most lenders will simply request a prior loan validation directly from VA’s website in lieu of a COE. If you have questions about your COE, contact us.
Get a free VA streamline rate quote here.
Can I add or remove anyone from the mortgage with a VA Streamline?
In some cases, parties can be added or removed. The general rule of thumb is that the veteran who was eligible for the original loan must remain on the loan. The exception is when a spouse and veteran are on the existing loan, and the veteran passes away. In this case, the spouse may be able to refinance with a VA streamline without the eligible veteran.
What if the VA streamline raises my payment?
The payment is allowed to rise as a result of the VA streamline in some cases. In the very rare case that the new payment goes up 20% or more because of these features, the lender may ask for full income documentation. Usually the payment does not rise that dramatically because of the below factors:
ARM to Fixed Rate
Because fixed rate mortgage generally have higher interest rates than adjustable rate mortgages (ARMs), your payment may go up. But, often it is a good trade off to know that your payment won’t change over the life of the loan like it can with an ARM.
Check VA rates today.
In some cases, your rate and payment may even go down if your ARM interest rate is higher than today’s low fixed rates.
Shorter Term
The VA streamline allows you to refinance from a 30 year loan into a shorter term, such as a 15 year term. In this case, it’s OK for your payment to rise as long as your interest rate goes down. Since shorter term loans pay off faster, payments are bigger than loans with longer terms.
Energy Efficient Improvements
As an added benefit, the streamline refinance program allows home owners to finance up to $6000 in energy efficient improvements for their home. These improvements will save home owners money over time and are a great option for those who are interested in upgrading and adding value to their home. Some examples of energy-efficient items are programmable thermostats, insulation, solar heating, and caulking/weather stripping.
In some cases, the veteran may receive cash at closing of a VA streamline for reimbursement of energy-efficient items. Check with your lender for details.
What if I have a Second mortgage?
Second mortgages on VA loans are fairly rare, since VA loans do not require a down payment, and therefore not enough equity exists to obtain a second mortgage.
In the case that there is a second, the new VA loan from a streamline can’t pay it off. A VA cash out loan would be required. Any additional loans on the property need to be “subordinated,” or put underneath on title, behind the new VA loan.
Can I get cash at closing with a VA streamline?
No. VA streamlines are meant only to pay off the existing loan and closing costs. The only exception is when a veteran prepays for energy-efficient improvements and needs to be reimbursed for actual costs.
Should I apply for a VA streamline with my current lender?
Although your original lender or current mortgage servicer might be able to do your VA streamline, it is not required. Any VA-approved lender can do your streamline, and it’s best to check with a few lenders to compare interest rates and fees.
Get a personalized rate quote here.
Is VA streamline the same as HARP 2.0?
No. HARP 2.0 is a refinance for loans owned by Fannie Mae or Freddie Mac. Fannie/Freddie do not own VA loans, so a HARP loan can’t refinance a VA loan.
Can I refinance my VA loan with a new conventional loan?
Yes, if you have enough equity and meet other qualification standards for conventional loans. If you have 20%+ equity in your home, it would be possible to open a new conventional mortgage without a funding fee or mortgage insurance, to refinance the current VA loan. This type of loan would require an appraisal and full income, asset, and credit underwriting.
Check today’s VA streamline rates.
What are the closing costs on a VA streamline?
Closing costs vary greatly from lender to lender. Borrowers should shop around to find the best interest rate and closing cost combination for them. There are certain closing costs the veteran can and cannot pay on a VA loan. For an in-depth look at closing costs, see our closing cost page. Generally, rules for VA streamline closing costs are the same as for purchase closing costs, except that the veteran may not finance more than two discount points (2%) into the new loan. Discount points are points paid to reduce the interest rate. For a closing cost quote based on your specific situation, contact a licenced VA lender.
Can the lender pay my closing costs instead of including them into the new loan?
In some, cases, the lender can give you a higher interest rate and pay your closing costs, and sometimes even your funding fee. The closing costs aren’t added to the loan amount; the lender pays them for you by using the excess profit from the loan. Usually this works best when rates are very low, or if you currently have a high interest rate. In these cases, you lower your rate substantially, despite the rate hike given to you to pay for fees.
Check today’s rates.
For instance, if market rates are 4.0%, your lender might give you a 4.25% rate and pay all your closing costs. You still end up with a great rate, and don’t add much principle to the loan balance. This isn’t always an option, though, and often closing costs need to be wrapped into the new loan or paid in cash.
Can I skip a payment by getting a VA streamline?
No payments can be skipped. Sometimes, depending on the closing date of the new loan, it appears that a payment has been missed because the previous or subsequent month’s interest was wrapped into the new loan. However, the VA does not condone this practice as a method to “skip” a payment. The VA lender should not coach the borrower to structure a refinance in this way.
How do I know if market rates are lower than my current rate?
The amount of money that you can save with a VA streamline refinance varies with the current VA interest rates that change based upon the normal market fluctuations. You should look at the current VA rates displayed on our site and match them against the rate you got when you initially got your VA loan. If the rate is lower than what you are currently paying, there’s a strong chance that you can save money with a VA streamline refinance loan.
Check today’s rates and see how much you can save.
Can I use a VA streamline to refinance another type of loan?
No. VA streamlines or for VA to VA refinances only. If you have a conventional, FHA, USDA, or other type of loan, you could possibly use a VA cash out refinance. You would need an appraisal, and income, asset, and credit documentation.
I’m Ready to Apply for a VA Streamline. What’s my Next Step?
Call (866) 240-3742 or simply complete our online form for a free, no obligation VA streamline rate quote. Rates are low and it’s a great time to lower your home payment.
Dollar Bank is a regional bank with over 60 offices in three U.S. states. Founded in 1855 as “Pittsburgh Dollar Savings Institution,” it didn’t shorten its name to Dollar Bank until 1986.
At this time, they began offering an increased amount of services, including credit cards, lines of credit, and term loans. As of March 2016, Dollar Bank is the largest independent mutual bank in the U.S.
Key Points of Dollar Bank
Founded in 1855, but did not become a lender until 1986
Currently the largest independent mutual bank in the U.S. as of early 2016
Offers a variety of mortgage products, from traditional fixed-rate loans to no closing cost refinance loans
A large variety of educational resources to help borrowers in the process of taking out a mortgage, as well as refinancing and buying a home
Only have 12 complaints on the Better Business Bureau site, despite being established since 1855
Bank’s headquarters is a Pittsburgh landmark and is on the U.S. Register of Historic Places
Overall Review of Dollar Bank
Even though Dollar Bank is only available in three U.S. states, it offers a wide variety of financial services to its customers. It has served primarily as a bank for over 150 years, but it has grown in recognition in the mortgage lender and credit industries.
Dollar Bank offers plenty of different types of mortgage lending products, such as fixed rate, adjustable rate, VA, and FHA loans. No matter what kind of loan is right for you, you can rest easy knowing that Dollar Bank’s customer support can help you at every stage of the borrowing process.
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Dollar Bank Loan Specifics
Dollar Bank’s mortgages are mostly comparable to other offerings in the industry. Their home loan options include:
Fixed Rate Loans
Fixed rate loans from Dollar Bank are meant for homebuyers who plan on living in the space for an extended period. These types of mortgages typically have higher initial interest rates than adjustable rate mortgages.
However, many buyers like the security of a fixed payment and interest rate, as it gives them a predictable number to budget. Dollar Bank offers fixed-rate loans in 30-year, 20-year, and 15-year increments of time, as well as in the form of Federal Housing Administration (FHA) loans.
Adjustable Rate Loans
Adjustable rate mortgages are best for homebuyers who plan on moving or refinancing in the next five or so years. These loans come with lower monthly principal and interest payments. It’s worth being aware of the fact that adjustable rate mortgages have a fixed rate for only a specific amount of years.
After that time, rates adjust with industry standards. Adjustable rate loans with Dollar Bank have a rate cap, which keeps the costs from rising too high. There are plenty of choices you can make when choosing what type of ARM you’d like, including:
7-year ARM
5-year ARM
3-year ARM
Construction mortgage
FHA 5-year ARM
VA Loans
The U.S. Department of Veterans’ Affairs helps veterans, current members of the U.S. Armed Forces, and their spouses get affordable mortgages. Qualified individuals may be able to get a loan worth 100 percent of the home’s purchase price.
However, this program has a maximum limit of $203,000 for no money down loans. If you choose not to put a down payment on the home, you will typically have a higher than average interest rate to make up for these costs.
CRA Loans
Dollar Bank offers plenty of mortgages through the Community Reinvestment Act. This option allows buyers to pay as little as 3 percent down on the home and even gives grants to first-time buyers. CRA mortgages make it easier to buy a house for qualifying homebuyers.
No Closing Cost Refinance Mortgages
With these loans, Dollar Bank will pay your closing costs, which can save you hundreds of dollars. You can qualify for terms up to 30 years with fixed rate security for 15, five, or three years.
Interest Only ARMs
Dollar Bank offers mortgages with much lower monthly payments than other types of loans, which puts more cash back into your hand. You can get a five-year or three-year interest only ARM with Dollar Bank.
Dollar Bank Mortgage Customer Experience
Dollar Bank operates in only three U.S. states but has plenty of online resources that allow potential borrowers to do some research before getting a mortgage. Dollar Bank makes it easy and convenient to find mortgage rates online with the following materials:
Mortgage calculators that help you estimate how much you would pay for certain types of loans to see how much you can afford on a home
Helpful videos that walk you through the mortgage process and answer any overarching questions you have about buying and refinancing a home
An online tool that allows you to get a free quote online after filling out a short form, without having to input your Social Security Number
A resource center with articles describing different types of loans, which can help you gain insight into the mortgage market as a whole and the benefits of working with Dollar Bank
If you are interested in a loan with Dollar Bank, you can fill out the online application or contact a mortgage sales representative directly over the phone.
Customer reviews on WalletHub and Bankrate seem to be mostly positive about Dollar Bank. However, these reviews do not only reflect the mortgage offerings.
Many reviews are about the banking and credit services the bank provides. J.D. Power does not include information for Dollar Bank on its Primary Mortgage Originator Rankings, and the CFPB does not have consumer complaint information for this bank.
Dollar Bank Lender Reputation
Dollar Bank has been around for about a century and a half, meaning it has garnered a plethora of both positive and negative reactions.
However, the bank has only offered mortgages for about 20 years, so it seems that a majority of its reputation comes from its other financial services.
The CFPB has never filed a complaint against Dollar Bank. The bank has 12 complaints on the BBB, although it is not currently accredited.
Dollar Bank Mortgage Qualifications
Qualification requirements for Dollar Bank are standard in comparison to other mortgage lenders. It does not mention their income requirements for borrowers or their credit score requirements. However, when applying for a mortgage with the bank, they request that borrowers have the following information available to see what they can afford:
Current monthly mortgage payment (if applicable)
Total annual income
Current monthly debt, excluding existing mortgage, insurance, and utility costs
An estimate of monthly insurance and tax costs for the new home
Income Requirements
Down Payment Requirements
Credit Score Requirements
None specified
0-20%, based on loan type
None specific; credit score will affect monthly costs
Homepage URL: https://www.dollar.bank/Personal • Company Phone: 1-800-828-5527 • Headquarters Address: 340 Fourth Ave, Pittsburgh, PA 15222