Merchants Bank Mortgage Interest Rate and Cost Review

Is Merchants Bank a cheap or expensive mortgage lender? To help you shop for a mortgage, we compare the interest rates and closing costs charged by Merchants Bank to those of other lenders for a comparable set of borrowers. Here is our review of Merchants Bank nationally:

Review ItemMerchants Bank
Interest Ratelower than other lenders (-0.18%)
Loan Related Closing Costssimilar to other lenders (+$84)
National Rate and Closing Cost Star Rating(4.5)

On average, Merchants Bank’s interest rates were lower than those of other lenders (-0.18%). On the other hand, its loan related closing costs were similar to those of other lenders, with a difference of +$84. Overall, combining interest rates and closing costs we estimate that Merchants Bank tends to be a cheap lender, and give it a National Rate and Closing Costs Rating of 4.5 out of 5 stars. This is an excellent rating and places it among the top 15% of lenders nationwide.

We maintain our independence by not accepting any money from the mortgage lenders we review. To visit Merchants Bank, check out its website at:

Merchants Bank’s Rate Review by City

Mortgage lenders often set different rates in different geographical markets. For our list of the top mortgage lenders by city, click here. In particular, among the cities we track Merchants Bank was most active in:

  1. Eau Claire, WI
  2. Minneapolis, MN
  3. Rochester, MN
  4. La Crosse, WI
  5. Fergus Falls, MN

In addition, Merchants Bank is our top ranked/best mortgage lender in terms of interest rate and closing costs in:

  1. Eau Claire, WI, overall
  2. Rochester, MN, overall
  3. La Crosse, WI, overall
  4. Fergus Falls, MN, overall

Merchants Bank’s Rate Review by Mortgage Type

Mortgage lenders also tend to charge different interest rates and closing costs depending on the type of mortgage. In our data, Merchants Bank originated Conforming, FHA, Jumbo, USDA and VA mortgages for new home purchases. It also originated Conforming, FHA and VA mortgages for refinances. Its average interest rate and total loan related closing cost difference relative to other lenders for comparable borrowers by mortgages type is as follows.

New Purchase MortgagesConformingFHAJumboUSDAVA
Interest Rate Difference-0.14%-0.01%+0.01%+0.00%+0.02%
Loan Related Closing Cost Difference+$129+$16-$3+$37+$108
Cost Adjusted Rate Difference-0.13%-0.01%+0.01%+0.01%+0.02%
National Star Rating(4)(3.5)(3.5)(3.5)(3.5)
Refinance MortgagesConformingFHAVA
Interest Rate Difference-0.22%+0.01%+0.00%
Loan Related Closing Cost Difference+$45-$87-$30
Cost Adjusted Rate Difference-0.22%+0.01%+0.00%
Average Star Rating(4.5)(3.5)(3.5)

As a summary, Merchants Bank is cheap for Conforming purchase mortgages. It is similar to other lenders for FHA, Jumbo, USDA and VA purchase mortgages. For refinancing mortgages, Merchants Bank is cheap for Conforming mortgage refinance. It is similar to other lenders for FHA and VA mortgage refinance. Nevertheless, individual circumstances can matter a lot for mortgage rates, and we always recommend shopping among several of our top mortgage lenders in your area before signing.

Other information about Merchants Bank:

Registered name: Merchants Bank
Registered city and state: Winona, MN, 55987
Regulator: Office of the Comptroller of the Currency (OCC)

* 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 Merchants 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.