Provident Funding Mortgage Interest Rate and Cost Review

Is Provident Funding a cheap or expensive mortgage lender? We compare the interest rates and closing costs charged by Provident Funding with other lenders for comparable mortgages. Nationally, here is what we find:

Interest Ratelower than average (-0.14%)
Loan Related Closing Costslower than average (-$1328)
National Rate and Closing Cost Rating(4.5)
Websitehttps://www.provident.com

On average, Provident Funding’s interest rates were lower than those of other lenders (-0.14%) for a comparable set of borrowers. Its average total loan related closing cost was lower than those of other lenders, with a difference of -$1328. Overall, combining interest rates and closing costs we estimate that Provident Funding tends to be a cheap lender, and give it a National Rate and Closing Costs Rating of 4.5 out of 5.0 stars.

Provident Funding’s Rates by Area

Mortgage lenders often set different rates in different geographical markets. In particular, among the markets we track Provident Funding was most active in:

  1. West Jordan, UT
  2. Phoenix, AZ
  3. Los Angeles, CA
  4. Denver, CO
  5. Sacramento, CA

Furthermore, Provident Funding is our top ranked mortgage lender in terms of interest rate and closing costs in:

  1. Dallas, TX, overall
  2. Houston, TX, overall
  3. Louisville, KY, overall
  4. Frisco, TX, overall
  5. Fort Collins, CO, overall
  6. St. George, UT, overall
  7. Modesto, CA, overall
  8. Blue River, CO, overall
  9. Wenatchee, WA, overall

You can click through to check out Provident Funding’s mortgage rate competitiveness by area. Or, for our data driven ranking of all the top mortgage lenders by area, click here.

Provident Funding’s Rates by Mortgage Type

Mortgage lenders also tend to charge different interest rates and closing costs depending on the type of mortgage. In our data, Provident Funding originated Conforming, FHA and Jumbo mortgages for new home purchases and refinances. We breakdown its interest rate and total loan related closing cost difference relative to other lenders for comparable mortgages by type in the table below.

Purchase/Refinance:
New Purchase MortgagesConformingFHAJumbo
Interest Rate Difference-0.14%-0.06%+0.01%
Loan Related Closing Cost Difference-$678-$363-$15
Cost Adjusted Rate Difference-0.17%-0.08%+0.01%
Star Rating(4.5)(4.0)(3.5)
Refinance MortgagesConformingFHAJumbo
Interest Rate Difference-0.14%-0.04%+0.01%
Loan Related Closing Cost Difference-$1594-$464-$24
Cost Adjusted Rate Difference-0.23%-0.06%+0.01%
Star Rating(4.5)(4.0)(3.5)

As a summary, Provident Funding is cheap for Conforming and FHA purchase mortgages. It is similar to other lenders for Jumbo purchase mortgages. For refinancing, Provident Funding is cheap for Conforming and FHA mortgage refinance. It is similar to other lenders for Jumbo mortgage refinance. Nevertheless, individual circumstances can matter, and we always recommend shopping among several lenders in your area before signing.

Other information about Provident Funding:

Registered name: Provident Funding Associates
Registered city and state: Burlingame, CA, 94010
Regulator: United States Department of Housing and Urban Development (HUD)

* Source of the data is Federal Financial Institutions Examination Council (FFIEC) and is for mortgages originated in the past year. Our comparable mortgages analysis controls for Provident Funding’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 commuting zone. Cost adjusted rates were computed based on each percent of the loan amount in above average loan related closing costs being worth +0.15 of a percentage point in interest rate. Furthermore, the amounts are regularized using a Bayesian approach to control for small samples.