Is Usaa Federal Savings Bank An Expensive Mortgage Lender?

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

Interest Rate: similar to average (-0.01%)
Loan Related Closing Costs: higher than average (+$604)
Assessment: this lender tends to be a average cost lender.

This scoreboard is based on data reported to FFIEC. In the data, Usaa Federal Savings Bank originated 55885 mortgages, a national market share of 0.9%. It was most active in AK (2.9% market share), NM (2.2% market share), and GA (1.6% market share).

On average, Usaa Federal Savings Bank’s interest rates were similar to those of comparable mortgages at other lenders (-0.01%).1The comparable mortgages control for Usaa Federal Savings 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 $5951, which was higher than those of comparable mortgages at $5348, with a difference of +$604. Overall, we estimate that Usaa Federal Savings Bank tends to be an average cost lender, with a cost-adjusted-rate difference of +0.03% 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 Usaa Federal Savings Bank.

Usaa Federal Savings Bank originated Conforming, Jumbo and VA mortgages for new home purchases. It also originated Conforming 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 Usaa Federal Savings Bank compared to other lenders

Conforming Jumbo VA
Interest Rate Difference -0.05% +0.10% +0.02%
Loan related Closing Cost Difference +$1213 +$756 +$449
Cost Adjusted Rate Difference +0.03% +0.12% +0.06%

Based on the table above, Usaa Federal Savings Bank is similar to other lenders for Conforming purchase mortgages. It is more expensive than other lenders for Jumbo and VA purchase mortgages.

Mortgage Refinancing from Usaa Federal Savings Bank compared to other lenders

Conforming VA
Interest Rate Difference -0.14% -0.00%
Loan Related Closing Cost Difference +$718 -$845
Cost Adjusted Rate Difference -0.09% -0.08%

Based on the table above, Usaa Federal Savings Bank is cheap for Conforming and VA mortgage refinance.

Other information about Usaa Federal Savings Bank:

Regulator: Consumer Financial Protection Bureau (CFPB) 
Top holder: UNITED SERVICES AUTOMOBILE ASSOCIATION
Registered city and state: SAN ANTONIO, TX, 78288
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Footnotes   [ + ]

1. The comparable mortgages control for Usaa Federal Savings 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.