Is Option Financial LLC An Expensive Mortgage Lender?

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

Interest Rate: higher than average (+0.39%)
Loan Related Closing Costs: similar to average (+$57)
Assessment: this lender tends to be a expensive lender.

This scoreboard is based on data reported to FFIEC. In the data, Option Financial LLC originated 111 mortgages, a national market share of 0.0%. It was primarily active in KY (0.1% market share) and OH (0.0% market share).

On average, Option Financial LLC’s interest rates were higher than those of comparable mortgages at other lenders (+0.39%).1The comparable mortgages control for Option Financial 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 $3889, which was similar to those of comparable mortgages at $3831, with a difference of +$57. Overall, we estimate that Option Financial LLC tends to be an expensive lender, with a cost-adjusted-rate difference of +0.39% 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 Option Financial LLC.

Option Financial 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 Option Financial LLC compared to other lenders

Conforming FHA
Interest Rate Difference +0.43% +0.34%
Loan related Closing Cost Difference +$407 -$370
Cost Adjusted Rate Difference +0.48% +0.28%

Based on the table above, Option Financial LLC is more expensive than other lenders for Conforming and FHA purchase mortgages.

Other information about Option Financial LLC:

Regulator: United States Department of Housing and Urban Development (HUD) 
Registered city and state: Cincinnati, OH, 45247
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 Option Financial 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.