Is Gershman Investment Corp. An Expensive Mortgage Lender?

We compare mortgage interest rate and loan related closing costs at Gershman Investment Corp. with other lenders for mortgages with similar borrower characteristics:

Interest Rate: higher than average (+0.05%)
Loan Related Closing Costs: similar to average (+$30)
Assessment: this lender tends to be a expensive lender.

This scoreboard is based on data reported to FFIEC. In the data, Gershman Investment Corp. originated 4000 mortgages, a national market share of 0.1%. It was most active in MO (1.9% market share), IA (1.2% market share), and IL (0.3% market share).

On average, Gershman Investment Corp.’s interest rates were higher than those of comparable mortgages at other lenders (+0.05%).1The comparable mortgages control for Gershman Investment Corp.’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 $3954, which was similar to those of comparable mortgages at $3924, with a difference of +$30. Overall, we estimate that Gershman Investment Corp. tends to be an expensive lender, with a cost-adjusted-rate difference of +0.05% 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 Gershman Investment Corp..

Gershman Investment Corp. originated Conforming, FHA, USDA and VA mortgages for new home purchases. It also originated Conforming, FHA and VA 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 Gershman Investment Corp. compared to other lenders

Conforming FHA USDA VA
Interest Rate Difference +0.10% +0.01% +0.03% +0.04%
Loan related Closing Cost Difference +$212 -$48 +$40 -$52
Cost Adjusted Rate Difference +0.12% -0.01% +0.03% +0.02%

Based on the table above, Gershman Investment Corp. is similar to other lenders for FHA, USDA and VA purchase mortgages. It is more expensive than other lenders for Conforming purchase mortgages.

Mortgage Refinancing from Gershman Investment Corp. compared to other lenders

Conforming FHA VA
Interest Rate Difference +0.06% -0.01% +0.06%
Loan Related Closing Cost Difference -$339 -$387 -$511
Cost Adjusted Rate Difference +0.03% -0.06% +0.02%

Based on the table above, Gershman Investment Corp. is cheap for FHA mortgage refinance. It is similar to other lenders for Conforming and VA mortgage refinance.

Other information about Gershman Investment Corp.:

Regulator: United States Department of Housing and Urban Development (HUD) 
Registered city and state: CHESTERFIELD, MO, 63017
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Footnotes   [ + ]

1. The comparable mortgages control for Gershman Investment Corp.’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.