Is Peoples Bank An Expensive Mortgage Lender?

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

Interest Rate: lower than average (-0.08%)
Loan Related Closing Costs: lower than average (-$488)
Assessment: this lender tends to be a cheap lender.

This scoreboard is based on data reported to FFIEC. In the data, Peoples Bank originated 480 mortgages, a national market share of 0.0%. It was most active in IN (0.3% market share), IL (0.0% market share), and NE (0.0% market share).

On average, Peoples Bank’s interest rates were lower than those of comparable mortgages at other lenders (-0.08%).1The comparable mortgages control for Peoples 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 $2424, which was lower than those of comparable mortgages at $2912, with a difference of -$488. Overall, we estimate that Peoples Bank tends to be an cheap lender, with a cost-adjusted-rate difference of -0.14% 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 Peoples Bank.

Peoples Bank originated Conforming 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 Peoples Bank compared to other lenders

Conforming
Interest Rate Difference -0.08%
Loan related Closing Cost Difference -$474
Cost Adjusted Rate Difference -0.15%

Based on the table above, Peoples Bank is cheap for Conforming purchase mortgages.

Mortgage Refinancing from Peoples Bank compared to other lenders

Conforming
Interest Rate Difference -0.05%
Loan Related Closing Cost Difference -$537
Cost Adjusted Rate Difference -0.12%

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

Other information about Peoples Bank:

Regulator: Federal Deposit Insurance Corporation (FDIC) 
Top holder: NORTHWEST INDIANA BANCORP
Registered city and state: Munster, IN, 46321

Footnotes   [ + ]

1. The comparable mortgages control for Peoples 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.

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