Is Farmers State Bank An Expensive Mortgage Lender?

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

Interest Rate: higher than average (+0.06%)
Loan Related Closing Costs: lower than average (-$280)
Assessment: this lender tends to be a cheap lender.

This scoreboard is based on data reported to FFIEC. In the data, Farmers State Bank originated 372 mortgages, a national market share of 0.0%. It was most active in IA (0.6% market share), SD (0.0% market share), and MT (0.0% market share).

On average, Farmers State Bank’s interest rates were higher than those of comparable mortgages at other lenders (+0.06%).1The comparable mortgages control for Farmers State 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 $788, which was lower than those of comparable mortgages at $1068, with a difference of -$280. Overall, we estimate that Farmers State Bank tends to be an cheap lender, with a cost-adjusted-rate difference of -0.06% 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 Farmers State Bank.

Farmers State 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 Farmers State Bank compared to other lenders

Conforming
Interest Rate Difference +0.08%
Loan related Closing Cost Difference -$250
Cost Adjusted Rate Difference -0.04%

Based on the table above, Farmers State Bank is similar to other lenders for Conforming purchase mortgages.

Mortgage Refinancing from Farmers State Bank compared to other lenders

Conforming
Interest Rate Difference +0.01%
Loan Related Closing Cost Difference -$345
Cost Adjusted Rate Difference -0.09%

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

Other information about Farmers State Bank:

Regulator: Federal Deposit Insurance Corporation (FDIC) 
Top holder: FSB FINANCIAL SERVICES, INC.
Registered city and state: Waterloo, IA, 50701

Lender Reviews:

Subscribe
Notify of
guest
Closed on time?
Did the lender have difficulty closing the loan on time?
Rating
What's your rating for the lender
0 Reviews
Inline Feedbacks
View all comments

Footnotes   [ + ]

1. The comparable mortgages control for Farmers State 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.