Fixed Rates Mortgages Below 5% Offered

New York, NY, Jan. 8, 2009--Some large U.S. banks are starting to offer fixed home loans below 5 percent.

JPMorgan Chase & Co. is advertising 30-year mortgages as low as 4.75 percent on its website, Wells Fargo & Co. has an offer for 4.875 percent and Bank of America Corp. has rates at 5 percent. The offers are for borrowers with excellent credit who put 20 percent down.

The Federal Reserve earlier this week began purchasing $500 billion of mortgage securities backed by Fannie Mae, Freddie Mac and Ginnie Mae to help lower mortgage costs.

A mortgage broker in San Diego this week obtained a 4.875 percent rate on a 30-year fixed loan for a homebuyer with a credit score above 750.

The loan, with Sun Trust Mortgage Inc., had no origination fee or points.