Is Washington Federal An Expensive Mortgage Lender?

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

Interest Rate: lower than average (-0.07%)
Loan Related Closing Costs: higher than average (+$1710)
Assessment: this lender tends to be a average cost lender.

This scoreboard is based on data reported to FFIEC. In the data, Washington Federal originated 2980 mortgages, a national market share of 0.0%. It was most active in WA (0.7% market share), ID (0.5% market share), and OR (0.5% market share).

On average, Washington Federal’s interest rates were lower than those of comparable mortgages at other lenders (-0.07%).1The comparable mortgages control for Washington Federal’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 $6521, which was higher than those of comparable mortgages at $4811, with a difference of +$1710. Overall, we estimate that Washington Federal tends to be an average cost lender, with a cost-adjusted-rate difference of +0.00% 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 Washington Federal.

Washington Federal originated Conforming and Jumbo mortgages for new home purchases. It also originated Conforming and Jumbo 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 Washington Federal compared to other lenders

Conforming Jumbo
Interest Rate Difference -0.06% +0.03%
Loan related Closing Cost Difference +$1622 +$4194
Cost Adjusted Rate Difference +0.02% +0.14%

Based on the table above, Washington Federal is similar to other lenders for Conforming purchase mortgages. It is more expensive than other lenders for Jumbo purchase mortgages.

Mortgage Refinancing from Washington Federal compared to other lenders

Conforming Jumbo
Interest Rate Difference -0.13% -0.07%
Loan Related Closing Cost Difference +$753 +$2770
Cost Adjusted Rate Difference -0.09% +0.00%

Based on the table above, Washington Federal is cheap for Conforming mortgage refinance. It is similar to other lenders for Jumbo mortgage refinance.

Other information about Washington Federal:

Regulator: Consumer Financial Protection Bureau (CFPB) 
Top holder: WASHINGTON FEDERAL, INC.
Registered city and state: Seattle, WA, 98101
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Footnotes   [ + ]

1. The comparable mortgages control for Washington Federal’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.