Charles Schwab Bank Mortgage Interest Rate and Cost Review

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

Interest Ratesimilar to average (-0.04%)
Loan Related Closing Costssimilar to average (+$2)
National Rate and Closing Cost Rating(3.5)

On average, Charles Schwab Bank’s interest rates were similar to those of other lenders (-0.04%) for a comparable set of borrowers. Its average total loan related closing cost was similar to those of other lenders, with a difference of +$2. Overall, combining interest rates and closing costs we estimate that Charles Schwab Bank tends to be an average cost lender, and give it a National Rate and Closing Costs Rating of 3.5 out of 5.0 stars.

Charles Schwab Bank’s Rates by Area

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

  1. San Francisco, CA
  2. Los Angeles, CA
  3. San Jose, CA
  4. San Diego, CA
  5. Phoenix, AZ

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

Charles Schwab Bank’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, Charles Schwab Bank originated Conforming 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.

New Purchase MortgagesConformingJumbo
Interest Rate Difference+0.01%-0.01%
Loan Related Closing Cost Difference-$4-$14
Cost Adjusted Rate Difference+0.01%-0.01%
Star Rating(3.5)(3.5)
Refinance MortgagesConformingJumbo
Interest Rate Difference+0.00%-0.05%
Loan Related Closing Cost Difference-$1+$8
Cost Adjusted Rate Difference+0.00%-0.05%
Star Rating(3.5)(4.0)

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

Other information about Charles Schwab Bank:

Registered name: Charles Schwab Bank
Registered city and state: Lone Tree, CO, 80124
Regulator: Consumer Financial Protection Bureau (CFPB)

* 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 Charles Schwab 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 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.