Flagstar Bank Mortgage Interest Rate and Cost Review

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

Interest Ratesimilar to average (+0.03%)
Loan Related Closing Costssimilar to average (-$167)
National Rate and Closing Cost Rating(3.5)

On average, Flagstar Bank’s interest rates were similar to those of other lenders (+0.03%) for a comparable set of borrowers. Its average total loan related closing cost was similar to those of other lenders, with a difference of -$167. Overall, combining interest rates and closing costs we estimate that Flagstar 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.

Flagstar Bank’s Rates by Area

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

  1. Los Angeles, CA
  2. Sterling Heights, MI
  3. Houston, TX
  4. San Francisco, CA
  5. Phoenix, AZ

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

  1. Wichita, KS, for FHA mortgages
  2. Laredo, TX, for VA mortgages
  3. Altamont, OR, for FHA, and VA mortgages
  4. Brainerd, MN, for FHA mortgages
  5. Newnan, GA, for FHA mortgages
  6. Marinette, WI, for VA mortgages
  7. Bismarck, ND, for FHA, and VA mortgages
  8. Santa Fe, NM, for VA mortgages
  9. Del Rio, TX, overall
  10. Kalispell, MT, for FHA mortgages
  11. Sioux City, IA, for FHA mortgages
  12. Cape Girardeau, MO, for FHA mortgages
  13. Columbia, MO, for FHA mortgages
  14. Fairfield Glade, TN, for FHA, and VA mortgages
  15. La Crosse, WI, for VA mortgages
  16. Champaign, IL, for FHA mortgages

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

Flagstar 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, Flagstar Bank originated Conforming, FHA, Jumbo, USDA and VA 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 MortgagesConformingFHAJumboUSDAVA
Interest Rate Difference+0.06%-0.06%+0.13%+0.00%+0.03%
Loan Related Closing Cost Difference+$100-$222+$491-$15+$10
Cost Adjusted Rate Difference+0.07%-0.08%+0.14%-0.00%+0.03%
Star Rating(3.0)(4.0)(3.0)(3.5)(3.5)
Refinance MortgagesConformingFHAJumboUSDAVA
Interest Rate Difference+0.04%+0.00%+0.12%-0.00%-0.04%
Loan Related Closing Cost Difference-$489-$62+$504+$7-$290
Cost Adjusted Rate Difference+0.01%-0.00%+0.13%-0.00%-0.06%
Star Rating(3.5)(3.5)(3.0)(3.5)(4.0)

As a summary, Flagstar Bank is cheap for FHA purchase mortgages. It is similar to other lenders for USDA and VA purchase mortgages. It is more expensive than other lenders for Conforming and Jumbo purchase mortgages. For refinancing, Flagstar Bank is cheap for VA mortgage refinance. It is similar to other lenders for Conforming, FHA and USDA mortgage refinance. It is more expensive than 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 Flagstar Bank:

Registered name: Flagstar Bank
Registered city and state: Troy, MI, 48098
Regulator: Consumer Financial Protection Bureau (CFPB)
Top holder: MP (THRIFT) LLC

* 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 Flagstar 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.