Is Gate City Bank An Expensive Mortgage Lender?

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

Interest Rate: lower than average (-0.11%)
Loan Related Closing Costs: similar to average (+$215)
Assessment: this lender tends to be a cheap lender.

This scoreboard is based on data reported to FFIEC. In the data, Gate City Bank originated 2896 mortgages, a national market share of 0.0%. It was most active in ND (17.6% market share), MN (0.5% market share), and MT (0.0% market share).

On average, Gate City Bank’s interest rates were lower than those of comparable mortgages at other lenders (-0.11%).1The comparable mortgages control for Gate City 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 $3987, which was similar to those of comparable mortgages at $3771, with a difference of +$215. Overall, we estimate that Gate City Bank tends to be an cheap lender, with a cost-adjusted-rate difference of -0.12% 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 Gate City Bank.

Gate City 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 Gate City Bank compared to other lenders

Conforming FHA USDA VA
Interest Rate Difference -0.13% -0.12% -0.01% -0.07%
Loan related Closing Cost Difference +$368 +$135 -$120 +$1047
Cost Adjusted Rate Difference -0.12% -0.12% -0.03% +0.00%

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

Mortgage Refinancing from Gate City Bank compared to other lenders

Conforming
Interest Rate Difference -0.08%
Loan Related Closing Cost Difference -$178
Cost Adjusted Rate Difference -0.14%

Based on the table above, Gate City Bank is cheap for Conforming mortgage refinance.

Other information about Gate City Bank:

Regulator: Office of the Comptroller of the Currency (OCC) 
Registered city and state: Fargo, ND, 58102
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Footnotes   [ + ]

1. The comparable mortgages control for Gate City 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.