Is Wells Fargo Bank Na An Expensive Mortgage Lender?

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

Interest Rate: lower than average (-0.05%)
Loan Related Closing Costs: lower than average (-$1129)
Assessment: this lender tends to be a cheap lender.

This scoreboard is based on data reported to FFIEC. In the data, Wells Fargo Bank Na originated 216313 mortgages, a national market share of 3.5%. It was most active in AK (9.0% market share), MN (7.3% market share), and CA (6.2% market share).

On average, Wells Fargo Bank Na’s interest rates were lower than those of comparable mortgages at other lenders (-0.05%).1The comparable mortgages control for Wells Fargo Bank Na’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 $3260, which was lower than those of comparable mortgages at $4389, with a difference of -$1129. Overall, we estimate that Wells Fargo Bank Na 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 Wells Fargo Bank Na.

Wells Fargo Bank Na originated Conforming, FHA, Jumbo, USDA and VA mortgages for new home purchases. It also originated Conforming, FHA, Jumbo 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 Wells Fargo Bank Na compared to other lenders

Conforming FHA Jumbo USDA VA
Interest Rate Difference -0.07% +0.32% -0.14% -0.01% -0.05%
Loan related Closing Cost Difference -$1272 -$629 -$1700 -$1334 -$756
Cost Adjusted Rate Difference -0.16% +0.24% -0.18% -0.17% -0.10%

Based on the table above, Wells Fargo Bank Na is cheap for Conforming, Jumbo, USDA and VA purchase mortgages. It is more expensive than other lenders for FHA purchase mortgages.

Mortgage Refinancing from Wells Fargo Bank Na compared to other lenders

Conforming FHA Jumbo VA
Interest Rate Difference +0.00% +0.29% -0.15% +0.03%
Loan Related Closing Cost Difference -$680 +$166 -$2010 -$1069
Cost Adjusted Rate Difference -0.04% +0.31% -0.20% -0.05%

Based on the table above, Wells Fargo Bank Na is cheap for Jumbo and VA mortgage refinance. It is similar to other lenders for Conforming mortgage refinance. It is more expensive than other lenders for FHA mortgage refinance.

Other information about Wells Fargo Bank Na:

Regulator: Consumer Financial Protection Bureau (CFPB) 
Top holder: WELLS FARGO & COMPANY
Registered city and state: WINSTON-SALEM, NC, 27150-0000
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Footnotes   [ + ]

1. The comparable mortgages control for Wells Fargo Bank Na’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.