Is Valley Mortgage, Inc. An Expensive Mortgage Lender?

We compare mortgage interest rate and loan related closing costs at Valley Mortgage, Inc. with other lenders for mortgages with similar borrower characteristics:

Interest Rate: lower than average (-0.08%)
Loan Related Closing Costs: lower than average (-$530)
Assessment: this lender tends to be a cheap lender.

This scoreboard is based on data reported to FFIEC. In the data, Valley Mortgage, Inc. originated 403 mortgages, a national market share of 0.0%. It was primarily active in ND (2.2% market share) and MN (0.1% market share).

On average, Valley Mortgage, Inc.’s interest rates were lower than those of comparable mortgages at other lenders (-0.08%).1The comparable mortgages control for Valley Mortgage, Inc.’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 $3714, which was lower than those of comparable mortgages at $4244, with a difference of -$530. Overall, we estimate that Valley Mortgage, Inc. 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 Valley Mortgage, Inc..

Valley Mortgage, Inc. originated Conforming, FHA and VA 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 Valley Mortgage, Inc. compared to other lenders

Conforming FHA VA
Interest Rate Difference -0.08% -0.08% -0.09%
Loan related Closing Cost Difference -$358 -$661 -$1216
Cost Adjusted Rate Difference -0.12% -0.14% -0.19%

Based on the table above, Valley Mortgage, Inc. is cheap for Conforming, FHA and VA purchase mortgages.

Other information about Valley Mortgage, Inc.:

Regulator: United States Department of Housing and Urban Development (HUD) 
Registered city and state: Fargo, ND, 58104
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Footnotes   [ + ]

1. The comparable mortgages control for Valley Mortgage, Inc.’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.