The government sponsored entity, Freddie Mac, released it’s mortgage rate survey showing 30 year mortgage interest rates near a record low and 15 year mortgage interest rates hitting a record low.

The average fixed 30-year mortgage rate was down to4.83 percent this week, with an average 0.7 discount points for the week ending November 12, 2009. Down from last week’s average mortgage interest rate of 4.91 percent. A year ago 30 year fixed rate mortgages averaged 6.04 percent.

Fixed 15-year mortgage rates averaged 4.32 percent this week, down from last week’s average home loan rate of 4.40 percent. Average mortgage discount points were 0.6 points. A year ago at this time, the 15-year FRM averaged 5.73 percent. 

Average five year Treasury-indexed hybrid adjustable rate mortgages averaged 4.25 percent this week, down from the prior week’s average of 4.35 percent.  Last year at this time the average 5-year adjustable mortgage interest rate was 5.87 percent. Mortgage points averaged 0.6 points.

One year U.S. Treasury indexed adjustable rate mortgages averaged 4.35 percent this week, , down from last week when it averaged 4.47 percent.  At this time last year, the 1-year ARM averaged 5.29 percent. Discount mortgage points average 0.6 points.

Freddie Mac’s vice president and chief economist had the following comments about the recent low mortgage interest rates.

“Interest rate on 30-year fixed-rate mortgage loans fell for the third consecutive week to the lowest since the week ending May 21^st, while 15-year fixed rates were the lowest since our records began in 1991,”. Low fixed rates throughout the third quarter prompted an estimated $1.1 trillion in refinancing activity, saving homeowners about $10 billion in aggregate monthly payments over the first 12 months of their new loan.  Moreover, for the fourth consecutive quarter, more than 95 percent of prime borrowers who originally had an ARM selected a conventional fixed-rate mortgage in the third quarter of this year.”

 “Meanwhile, new home building showed some weakness in recent months.  Residential construction eased 10.6 percent (annualized) between September and October, largely driven by a 33.3 percent decline in new condominium and apartment buildings and represented the slowest pace since records began in 1959.  And home builder confidence in November remained a relatively low level, according to the National Association of Home Builders.”

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The banking division is probably trying to build their cash reserves which is why its offering some of the highest cd rates available. Certificate of deposit accounts and all deposit accounts are insured by the FDIC.

The bank’s current six months certificate of deposit rate is 1.44 percent with an annual percentage yield of 1.45 percent, a rate that is one of the top cd rates around. The rate is also a lot higher than the national average 6 months CD Rate of 0.82 percent.

12 months certificate of deposits are currently earning a CD rate of 1.88 percent and an annual percentage yield of 1.90 percent. Average CD rates for a 12 month CD is at 1.104 percent as of today. Ally Bank is also offering a rate of 1.88 percent.

Other AIG Bank certificate of deposit rates include their 18 month CD with a rate of 1.93 percent and an APY of 1.95 percent. The 24 months certificate is earning a rate of 2.18 percent with an APY of 2.20 percent. The 36 months certificate of deposit rate is 2.47 percent and the APY is 2.50 percent. Five year CDs earn a rate of 3.00 percent and an APY of 2.05 percent.

AIG Bank Certificate of Deposit Rates

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AIG Bank’s money market rates are tiered, which means the rate of interest the account earns is scaled according to the amount invested in the account.  The higher the balance in the money market account, the higher the rate. 

Savings accounts and jumbo CDs typically earn higher rates with larger deposits and terms than accounts with smaller deposits and shorter terms. AIG Bank’s money market accounts with balances of $2,500 to $9,999 earn a rate of 1.09 percent and a yield of 1.10 percent.

Account balances between $10,000 and $49,999 earn a rate of 1.49 percent and an annual percentage yield of 1.50 percent. Balances between $50,000 and $99,999 earn a rate of 1.54 percent and a yield of 1.55 percent. 

Money market accounts with balances between $100,000 and $249,000 earn a rate of 1.60 percent and a yield of 1.60 percent. Account balances over $250,00 earn a rate of 1.64 percent and a yield of 1.65 percent.

Deposits are insured up to $250,000 so I would keep account balances under that limit. If you have more funds to deposit a better option for you is probably the Certificate of Deposit Account Registry Service (CDARS.com) which allows you to deposit up to $50 million and still receive FDIC insurance coverage.

AIG Bank also now also offering mortgages and the bank is currently  advertising a 30 year mortgage rate at 4.625 percent.

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Citibank’s 12 month certificate of deposit rate and yield are higher than the national average CD rate and CD yield. Citibank is currently offering a 12 month CD rate at 1.19 percent with an APY of 1.20 percent.

Other CD rates include a three month CD rate of .25 percent with an APY of .25 percent. Five month CD rate and yield of .50 percent. An eight month CD rate and yield of .60 percent. Five year certificate of deposit rates are currently at 2.71 percent.

As you probably are aware the government has come to the rescue of Citibank last year during the height of the credit crisis. The bank has participated in the government’s Trouble Asset Relief Program (TARP).

Despite the fact the Citibank was in trouble last year there is little risk that the government will let Citibank fail because “its to big to fail”. That being said even if the bank did fail deposit accounts are still insured by the Federal Deposit Insurance Corporation (FDIC).

Citibank also offers credit cards, mortgages and auto loans.

Citibank CD Rates

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Most refinancers choose a 30-year fixed-rate mortgages over all other mortgage types. 15-year fixed-rate mortgages gained in popularity among people who refinanced in the third quarter who previously held 30-year fixed-rate mortgage, balloon mortgages or an adjustable rate mortgage.

Home-owners are taking advantage of near record low mortgage interest rates and refinancing to fixed rate products from riskier adjustable rate mortgages. A smart move to refinance to fixed mortgages since mortgage rates are expected to head higher in the coming year.

“Low rates throughout all of 2009 have prompted about $1.1 trillion in refinancing activity this year, and we estimate that the borrowers who took advantage of refinancing opportunities in the first three quarters of the year will save about $10 billion in aggregate monthly payments over the first twelve months of their new loan,” said Frank Nothaft, vice president and chief economist for Freddie Mac.  “Over the first nine months of this year, the average interest rate offered by lenders on 30-year fixed-rate loans was 5.1 percent, on 15-year fixed-rate loans was 4.7 percent, and on 5/1 hybrid ARMs was 4.9 percent according to the Primary Mortgage Market Survey®.  Because interest rates across fixed- and adjustable-rate products are similar and fixed-rate loans provide the benefit of a certain principal-and-interest payment, most borrowers have chosen fixed-rate loans.

“For borrowers who can swing the higher payments that come with shorter term mortgages, the interest savings really add up.  The average fixed-rate refinance loan in the first three quarters of 2009 had a principal balance of about $225,000 and an initial interest rate of 6.25 percent.  By choosing another 30-year fixed-rate mortgage, a borrower could lower their monthly payment by $160 per month and would accumulate $3,200 in equity through principal payments over the first year.  In contrast, a borrower who chose a 15-year fixed-rate mortgage would have an even lower new interest rate but their monthly payment would rise by $350 per month; however, at the end of the first year they would have paid down $10,650 of the principal balance, thus building up home-equity wealth more quickly.”

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The current annual percentage yield for the money market account is 2.00%. The account also comes with a free MasterCard CheckCard, which is a debit card.  The money market account also has the following features.

• Monthly Statements are received electronically
• Includes 6 FREE withdrawals per month ($5 fee for each withdrawal after 5 per statement cycle).
• FREE Account (No Monthly Maintenance Fee)
• FREE Online Banking
• FREE Customer Service
• Overdraft Privilege available.
• NO MINIMUM BALANCE

Evantage Mega Money Market Account

Southwest State Bank is offering a rewards checking account that currently has an annual percentage yield of 4.00%. In case you’re not familiar with rewards checking accounts there is a certain number of transactions you have to do every month to receive the rewards checking rate.

If you fail to meet the requirements for a particular month the APY is a lot less than the advertised rate. Lean more here: Southwest State Bank Rewards Checking

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The current 12 month CD rate is 1.99 percent with an annual percentage yield of 2.o1 percent. This CD rate and CD yield is a lot higher than the current national average certificate of deposit rates of 1.12% APY for a 12 months CD and 1.29% APY for an 18 months certificate of deposit.

Pacific Mercantile Bank is also currently offering the following certificate of deposit rates and yields.

3 Month CD Rate 1.20% – APY- 1.21%
6 Month CD Rate 1.51% – APY 1.52%
24 Month CD Rate 2.12% – APY 2.14%
36 Month CD Rate 2.12% – APY 2.14%
60 Month CD Rate 2.12% – APY 2.14%

Pacific Mercantile Bank is headquartered in Costa Mesa, CA and has several bank branches in California. Deposit accounts are insured by the Federal Deposit Insurance Corporation (FDIC). The Bank’s FDIC Cert number is 34950.

Pacific Mercantile Bank CD Rates

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The certificate of deposit $25 promotional bonus offer is valid until December 15, 2009. There is a limit of one offer per customer. Be sure to use offer code D120336 to receive the promo bonus.

The money you open the CD account with also must remain in the CD for at least 90 days to receive the bonus. Of course you will not want to incur any early withdrawal penalties even if you pass the 90 day grace period for the bonus.

The bank also offers very competitive 12 month CD rates and CD yields . The current 12 month certificate of deposit rate is 1.88 percent and the annual percentage yield (APY) is 1.90 percent. The bank also offers a 24 month certificate of deposit rate of 2.23 percent and an APY of 2.25 percent.

Discover Bank $25 Promotional Bonus offer

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