Is Independent Bank An Expensive Mortgage Lender?

We compare mortgage interest rate and loan related closing costs at Independent Bank with other lenders for mortgages with similar borrower characteristics:

Interest Rate: similar to average (-0.03%)
Loan Related Closing Costs: similar to average (+$34)
Assessment: this lender tends to be a average cost lender.

This scoreboard is based on data reported to FFIEC. In the data, Independent Bank originated 3889 mortgages, a national market share of 0.1%. It was most active in MI (1.6% market share), OH (0.2% market share), and IN (0.0% market share).

On average, Independent Bank’s interest rates were similar to those of comparable mortgages at other lenders (-0.03%).1The comparable mortgages control for Independent Bank’s distribution of loan term (e.g. 30 year vs 15 year), loan-to-value (LTV), debt-to-income (DTI), loan amount, loan program (e.g. Conforming/FHA), loan purpose (e.g. purchase/refinance), and county. Interest rate and loan related closing costs are estimated based on fixed rate mortgages only, whereas market shares include all purchase or refinance mortgages. Its average total loan related closing cost was $3257, which was similar to those of comparable mortgages at $3223, with a difference of +$34. Overall, we estimate that Independent Bank tends to be an average cost lender, with a cost-adjusted-rate difference of -0.03% compared to comparable mortgages at other lenders.2Cost adjusted rates were computed based on each percent of the loan amount in loan related closing costs being worth 1/6 of a percentage point in interest rate. Nevertheless, we recommend comparing your rate and fees with at least a few other lenders before signing with Independent Bank.

Independent Bank originated Conforming, FHA, Jumbo, USDA and VA mortgages for new home purchases. It also originated Conforming mortgages for refinances. We breakdown its interest rate and total loan related closing cost on by each of the mortgage types it originated below:

Home Purchase Mortgages from Independent Bank compared to other lenders

Conforming FHA Jumbo USDA VA
Interest Rate Difference -0.03% -0.07% +0.06% -0.04% +0.05%
Loan related Closing Cost Difference +$86 -$48 -$476 -$37 +$709
Cost Adjusted Rate Difference -0.02% -0.08% +0.05% -0.05% +0.13%

Based on the table above, Independent Bank is cheap for FHA purchase mortgages. It is similar to other lenders for Conforming, Jumbo and USDA purchase mortgages. It is more expensive than other lenders for VA purchase mortgages.

Mortgage Refinancing from Independent Bank compared to other lenders

Conforming
Interest Rate Difference -0.08%
Loan Related Closing Cost Difference -$139
Cost Adjusted Rate Difference -0.09%

Based on the table above, Independent Bank is cheap for Conforming mortgage refinance.

Other information about Independent Bank:

Regulator: Federal Reserve System (FRS) 
Top holder: INDEPENDENT BANK CORPORATION
Registered city and state: Grand Rapids, MI, 49525
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Footnotes   [ + ]

1. The comparable mortgages control for Independent Bank’s distribution of loan term (e.g. 30 year vs 15 year), loan-to-value (LTV), debt-to-income (DTI), loan amount, loan program (e.g. Conforming/FHA), loan purpose (e.g. purchase/refinance), and county. Interest rate and loan related closing costs are estimated based on fixed rate mortgages only, whereas market shares include all purchase or refinance mortgages.
2. Cost adjusted rates were computed based on each percent of the loan amount in loan related closing costs being worth 1/6 of a percentage point in interest rate.