Is Direct Lenders, LLC. An Expensive Mortgage Lender?

We compare mortgage interest rate and loan related closing costs at Direct Lenders, LLC. with other lenders for mortgages with similar borrower characteristics:

Interest Rate: lower than average (-0.10%)
Loan Related Closing Costs: lower than average (-$2008)
Assessment: this lender tends to be a cheap lender.

This scoreboard is based on data reported to FFIEC. In the data, Direct Lenders, LLC. originated 238 mortgages, a national market share of 0.0%. It was most active in GA (0.1% market share), AL (0.0% market share), and FL (0.0% market share).

On average, Direct Lenders, LLC.’s interest rates were lower than those of comparable mortgages at other lenders (-0.10%).1The comparable mortgages control for Direct Lenders, LLC.’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 $3159, which was lower than those of comparable mortgages at $5167, with a difference of -$2008. Overall, we estimate that Direct Lenders, LLC. tends to be an cheap lender, with a cost-adjusted-rate difference of -0.27% 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 Direct Lenders, LLC..

Direct Lenders, LLC. originated Conforming and FHA mortgages for new home purchases. 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 Direct Lenders, LLC. compared to other lenders

Conforming FHA
Interest Rate Difference -0.03% -0.18%
Loan related Closing Cost Difference -$1514 -$2555
Cost Adjusted Rate Difference -0.16% -0.39%

Based on the table above, Direct Lenders, LLC. is cheap for Conforming and FHA purchase mortgages.

Other information about Direct Lenders, LLC.:

Regulator: United States Department of Housing and Urban Development (HUD) 
Registered city and state: Kennesaw, GA, 30152

Footnotes   [ + ]

1. The comparable mortgages control for Direct Lenders, LLC.’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.

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