Is Home State Bank National Association An Expensive Mortgage Lender?

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

Interest Rate: similar to average (-0.02%)
Loan Related Closing Costs: similar to average (-$172)
Assessment: this lender tends to be a average cost lender.

This scoreboard is based on data reported to FFIEC. In the data, Home State Bank National Association originated 463 mortgages, a national market share of 0.0%. It was most active in IL (0.2% market share), WI (0.1% market share), and IN (0.0% market share).

On average, Home State Bank National Association’s interest rates were similar to those of comparable mortgages at other lenders (-0.02%).1The comparable mortgages control for Home State Bank National Association’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 $4100, which was similar to those of comparable mortgages at $4271, with a difference of -$172. Overall, we estimate that Home State Bank National Association 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 Home State Bank National Association.

Home State Bank National Association originated Conforming and FHA 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 Home State Bank National Association compared to other lenders

Conforming FHA
Interest Rate Difference +0.02% -0.24%
Loan related Closing Cost Difference -$80 -$214
Cost Adjusted Rate Difference +0.01% -0.26%

Based on the table above, Home State Bank National Association is cheap for FHA purchase mortgages. It is similar to other lenders for Conforming purchase mortgages.

Mortgage Refinancing from Home State Bank National Association compared to other lenders

Conforming
Interest Rate Difference +0.00%
Loan Related Closing Cost Difference -$412
Cost Adjusted Rate Difference -0.04%

Based on the table above, Home State Bank National Association is similar to other lenders for Conforming mortgage refinance.

Other information about Home State Bank National Association:

Regulator: Office of the Comptroller of the Currency (OCC) 
Top holder: HOME STATE BANCORP, INC.
Registered city and state: Crystal Lake, IL, 60014

Footnotes   [ + ]

1. The comparable mortgages control for Home State Bank National Association’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.

Leave a Comment