Is Neighborhood Loans An Expensive Mortgage Lender?

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

Interest Rate: higher than average (+0.12%)
Loan Related Closing Costs: higher than average (+$530)
Assessment: this lender tends to be a expensive lender.

This scoreboard is based on data reported to FFIEC. In the data, Neighborhood Loans originated 1613 mortgages, a national market share of 0.0%. It was most active in IL (0.7% market share), WI (0.0% market share), and IN (0.0% market share).

On average, Neighborhood Loans’s interest rates were higher than those of comparable mortgages at other lenders (+0.12%).1The comparable mortgages control for Neighborhood Loans’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 $6173, which was higher than those of comparable mortgages at $5643, with a difference of +$530. Overall, we estimate that Neighborhood Loans tends to be an expensive lender, with a cost-adjusted-rate difference of +0.17% 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. Therefore, we recommend comparing your rate and fees with at least a few other lenders before signing with Neighborhood Loans.

Neighborhood Loans originated Conforming and FHA mortgages for new home purchases. It also originated Conforming and FHA 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 Neighborhood Loans compared to other lenders

Conforming FHA
Interest Rate Difference +0.11% +0.13%
Loan related Closing Cost Difference +$680 +$483
Cost Adjusted Rate Difference +0.17% +0.17%

Based on the table above, Neighborhood Loans is more expensive than other lenders for Conforming and FHA purchase mortgages.

Mortgage Refinancing from Neighborhood Loans compared to other lenders

Conforming FHA
Interest Rate Difference +0.12% +0.17%
Loan Related Closing Cost Difference +$105 -$71
Cost Adjusted Rate Difference +0.14% +0.15%

Based on the table above, Neighborhood Loans is more expensive than other lenders for Conforming and FHA mortgage refinance.

Other information about Neighborhood Loans:

Regulator: United States Department of Housing and Urban Development (HUD) 
Registered city and state: Lombard, IL, 60148
FB Comments

Lender Reviews:

Subscribe
Notify of
guest
Closed on time?
Did the lender have difficulty closing the loan on time?
Rating
What's your rating for the lender
0 Reviews
Inline Feedbacks
View all comments

Footnotes   [ + ]

1. The comparable mortgages control for Neighborhood Loans’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.