Is FirstBank An Expensive Mortgage Lender?

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

Interest Rate: lower than average (-0.11%)
Loan Related Closing Costs: lower than average (-$306)
Assessment: this lender tends to be a cheap lender.

This scoreboard is based on data reported to FFIEC. In the data, FirstBank originated 17930 mortgages, a national market share of 0.3%. It was most active in AL (3.5% market share), TN (2.5% market share), and MS (1.5% market share).

On average, FirstBank’s interest rates were lower than those of comparable mortgages at other lenders (-0.11%).1The comparable mortgages control for FirstBank’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 $3910, which was lower than those of comparable mortgages at $4217, with a difference of -$306. Overall, we estimate that FirstBank tends to be an cheap lender, with a cost-adjusted-rate difference of -0.13% 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 FirstBank.

FirstBank originated Conforming, FHA, Jumbo, USDA and VA mortgages for new home purchases. It also originated Conforming, FHA, Jumbo 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 FirstBank compared to other lenders

Conforming FHA Jumbo USDA VA
Interest Rate Difference -0.10% -0.11% +0.02% -0.10% -0.13%
Loan related Closing Cost Difference -$138 +$297 -$224 +$494 -$192
Cost Adjusted Rate Difference -0.11% -0.08% +0.02% -0.05% -0.14%

Based on the table above, FirstBank is cheap for Conforming, FHA and VA purchase mortgages. It is similar to other lenders for Jumbo and USDA purchase mortgages.

Mortgage Refinancing from FirstBank compared to other lenders

Conforming FHA Jumbo VA
Interest Rate Difference -0.11% -0.09% -0.08% -0.16%
Loan Related Closing Cost Difference -$960 -$481 -$774 -$557
Cost Adjusted Rate Difference -0.18% -0.15% -0.10% -0.21%

Based on the table above, FirstBank is cheap for Conforming, FHA, Jumbo and VA mortgage refinance.

Other information about FirstBank:

Regulator: Federal Deposit Insurance Corporation (FDIC) 
Top holder: FB FINANCIAL CORPORATION
Registered city and state: Nashville, TN, 37221

Footnotes   [ + ]

1. The comparable mortgages control for FirstBank’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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