Is HomeStar Bank and Financial Services An Expensive Mortgage Lender?

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

Interest Rate: similar to average (-0.05%)
Loan Related Closing Costs: similar to average (+$123)
Assessment: this lender tends to be a average cost lender.

This scoreboard is based on data reported to FFIEC. In the data, HomeStar Bank and Financial Services originated 337 mortgages, a national market share of 0.0%. It was most active in IL (0.2% market share), IA (0.0% market share), and IN (0.0% market share).

On average, HomeStar Bank and Financial Services’s interest rates were similar to those of comparable mortgages at other lenders (-0.05%).1The comparable mortgages control for HomeStar Bank and Financial Services’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 $2917, which was similar to those of comparable mortgages at $2794, with a difference of +$123. Overall, we estimate that HomeStar Bank and Financial Services tends to be an average cost lender, with a cost-adjusted-rate difference of -0.05% 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 HomeStar Bank and Financial Services.

HomeStar Bank and Financial Services 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 HomeStar Bank and Financial Services compared to other lenders

Conforming
Interest Rate Difference-0.01%
Loan related Closing Cost Difference+$150
Cost Adjusted Rate Difference-0.00%

Based on the table above, HomeStar Bank and Financial Services is similar to other lenders for Conforming purchase mortgages.

Mortgage Refinancing from HomeStar Bank and Financial Services compared to other lenders

Conforming
Interest Rate Difference-0.12%
Loan Related Closing Cost Difference+$69
Cost Adjusted Rate Difference-0.13%

Based on the table above, HomeStar Bank and Financial Services is cheap for Conforming mortgage refinance.

Other information about HomeStar Bank and Financial Services:

Regulator: Federal Deposit Insurance Corporation (FDIC) 
Top holder: HOMESTAR FINANCIAL GROUP, INC.
Registered city and state: Manteno, IL, 60950

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Footnotes

Footnotes
1The comparable mortgages control for HomeStar Bank and Financial Services’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.
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.