Mortgage interest rates ticked up slightly in the last week, per the latest data from Freddie Mac, but for most of 2017, rates have trended down.
But with rates still above where they were last summer, one lender is offering borrowers a discount on their interest rate to try to earn their mortgage business.
On Thursday, Ally Bank announced that Ally Home, the bank’s direct-to-consumer mortgage channel, is now offering a 0.125% discount off mortgage interest rates to all customers for all loan products, term lengths and loan sizes.
According to Ally, the 0.125% discount is available for customers who apply for a new loan or a refinance and lock in the rate between June 1, 2017 and July 31, 2017.
“The discount, when coupled with Ally's already low rates, represents a significant savings for consumers,” Ally said in an announcement.
For example, on a 30-year conforming loan of $300,000, the difference between a 4% interest rate and a 3.875% interest rate can turn into potential savings of over $7,500 over the life of the loan, Ally noted.
“This is a very competitive offer by industry standards because we want Ally customers to know we're dedicated to their financial needs,” said Diane Morais, president of consumer and commercial banking products at Ally Bank.
“When it's time to buy or refinance a home, we'll be right here to help, and we're offering this .125% promotion off their Ally Home loan interest rate for a limited time to underscore our commitment to being an ally for our customers' financial well-being,” Morais added.