Is Centennial Bank An Expensive Mortgage Lender?

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

Interest Rate: similar to average (-0.03%)
Loan Related Closing Costs: lower than average (-$743)
Assessment: this lender tends to be a cheap lender.

This scoreboard is based on data reported to FFIEC. In the data, Centennial Bank originated 2549 mortgages, a national market share of 0.0%. It was most active in AR (2.5% market share), FL (0.3% market share), and AL (0.1% market share).

On average, Centennial Bank’s interest rates were similar to those of comparable mortgages at other lenders (-0.03%).1The comparable mortgages control for Centennial 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 $3049, which was lower than those of comparable mortgages at $3792, with a difference of -$743. Overall, we estimate that Centennial Bank tends to be an cheap lender, with a cost-adjusted-rate difference of -0.11% 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 Centennial Bank.

Centennial Bank originated Conforming, FHA, 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 Centennial Bank compared to other lenders

Conforming FHA USDA VA
Interest Rate Difference -0.01% -0.06% +0.01% -0.12%
Loan related Closing Cost Difference -$642 -$1304 -$1093 -$576
Cost Adjusted Rate Difference -0.07% -0.22% -0.16% -0.17%

Based on the table above, Centennial Bank is cheap for Conforming, FHA, USDA and VA purchase mortgages.

Mortgage Refinancing from Centennial Bank compared to other lenders

Conforming
Interest Rate Difference -0.02%
Loan Related Closing Cost Difference -$286
Cost Adjusted Rate Difference -0.05%

Based on the table above, Centennial Bank is similar to other lenders for Conforming mortgage refinance.

Other information about Centennial Bank:

Regulator: Federal Reserve System (FRS) 
Top holder: HOME BANCSHARES, INC.
Registered city and state: CONWAY, AR, 72033
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Footnotes   [ + ]

1. The comparable mortgages control for Centennial 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.