Hometown Bank Mortgage Rates, Fees & Info

Redwood Falls, MN

LEI: 254900KSUTZO899YU680

Tax ID: 41-0498480

5 stars - out of 5 stars, based on 26 reviews

2021 Data | 2020 Data | 2019 Data | 2018 Data


Overview

Hometown Bank is a smaller bank specializing in Cash Out Refi, Home Purchase, and Refi loans. Hometown Bank has a high proportion of conventional loans. Their top markets include Minneapolis, Mankato, Rochester, Willmar, and Hutchinson among others. Hometown Bank has an above average approval rate for mortages when compared nationally. They have a below average pick rate when compared to the same sample of other lendors. Hometown Bank is typically an average fee lendor.


Originations

685

Origination Dollar Volume (All Markets)

$145,725,000

Employee count

98

Relative Rate

Hometown Bank's average 30 year fixed rate mortgage of loans were 3.14%.

The 2021 average 30 year fixed rate mortgage across all markets of loans were 3.15%.

This yields a difference of -0.01%.

Relative Fees

Hometown Bank's average total fees for a 30 year fixed rate mortgage are $4,228.

The average total origination fees for 30 year fixed rate mortgages (for all loan values, including both points & up-front fees in addition to origination fees) are $4,750.

Top Markets

Market Originations Total Value Average Loan Average Fees Average Rate
MINNEAPOLIS-ST. PAUL-BLOOMINGTON, MN-WI (FHA|USDA|VA) 310 $80,370,000 $259,258 $4,102 3.10%
Outside of Metro Areas 190 $28,870,000 $151,947 $3,367 2.99%
MANKATO, MN (FHA|USDA|VA) 50 $9,280,000 $185,600 $3,375 3.31%
ROCHESTER, MN (FHA|USDA|VA) 17 $4,195,000 $246,765 $4,619 2.87%
Willmar, MN (FHA|USDA|VA) 21 $4,145,000 $197,381 $3,207 3.23%
Hutchinson, MN (FHA|USDA|VA) 13 $2,935,000 $225,769 $3,995 2.87%
Owatonna, MN (FHA|USDA|VA) 15 $2,925,000 $195,000 $4,564 3.03%
Fairmont, MN (FHA|USDA|VA) 14 $2,110,000 $150,714 $3,533 2.71%
New Ulm, MN (FHA|USDA|VA) 9 $1,415,000 $157,222 $3,815 3.15%
Alexandria, MN (FHA|USDA|VA) 7 $1,245,000 $177,857 $3,845 3.11%
Austin, MN (FHA|USDA|VA) 4 $1,040,000 $260,000 $5,372 2.97%
Albert Lea, MN (FHA|USDA|VA) 6 $910,000 $151,667 $3,857 2.75%
Red Wing, MN (FHA|USDA|VA) 6 $890,000 $148,333 $3,355 2.96%
Marshall, MN (FHA|USDA|VA) 6 $810,000 $135,000 $2,973 3.56%
ST. CLOUD, MN (FHA|USDA|VA) 3 $775,000 $258,333 $4,513 2.67%
Faribault-Northfield, MN (FHA|USDA|VA) 2 $750,000 $375,000 $4,057 2.63%
Brainerd, MN (FHA|USDA|VA) 3 $735,000 $245,000 $3,942 3.13%
SIOUX FALLS, SD (FHA|USDA|VA) 2 $710,000 $355,000 $5,644 3.13%
DULUTH, MN-WI (FHA|USDA|VA) 2 $610,000 $305,000 $5,623 2.88%
Baraboo, WI (FHA|USDA|VA) 1 $335,000 $335,000 $5,005 3.00%
Grand Rapids, MN (FHA|USDA|VA) 1 $305,000 $305,000 $5,686 2.88%
Spearfish, SD (FHA|USDA|VA) 1 $165,000 $165,000 $3,141 3.13%
Brookings, SD (FHA|USDA|VA) 1 $135,000 $135,000 $0 2.99%
FARGO, ND-MN (FHA|USDA|VA) 1 $65,000 $65,000 $2,852 3.00%

Hometown Bank's top markets include Minneapolis, Mankato, Rochester, Willmar, and Hutchinson among others.

Product Mix

Loan Type Originations Total Value Average Loan Average Fees Average Rate
Conventional 685 $145,725,000 $212,737 $3,845 3.07%

For the 2021 period, Hometown Bank's most frequently originated loan type of loans were Conventional, with 685 originations.

Loan Reason

Loan Reason Originations Total Value Average Loan Average Fees Average Rate
Cash Out Refi 237 $51,275,000 $216,350 $3,855 2.97%
Home Purchase 219 $45,255,000 $206,644 $4,294 3.17%
Refi 191 $41,945,000 $219,607 $3,671 2.77%
Other 24 $6,280,000 $261,667 $2,569 4.38%
Home Improvement 14 $970,000 $69,286 $1,370 4.73%

For the 2021, Hometown Bank's most frequently cited loan purpose of loans were Cash Out Refi, with 237 originations. The 2nd most popular reason of loans were Home Purchase, with 219 originations.

Loan Duration/Length

Loan Length Originations Total Value Average Loan Average Fees Average Rate
30 Year 340 $80,610,000 $237,088 $4,228 3.14%
15 Year 200 $37,680,000 $188,400 $3,535 2.60%
20 Year 85 $17,135,000 $201,588 $3,740 3.10%
Other 27 $4,525,000 $167,593 $3,180 3.66%
5 Year 18 $1,020,000 $56,667 $981 4.97%
10 Year 14 $1,380,000 $98,571 $2,001 3.95%
30+ year 1 $3,375,000 $3,375,000 $19,087 3.00%

For the 2021, Hometown Bank's most frequently cited loan length of loans were 30 Year, with 340 originations. The 2nd most popular length of loans were 15 Year, with 200 originations.

Origination Fees

Origination Fee Originations Total Value Average Loan
$1k-2k 239 $33,445,000 $139,937
$2k-3k 154 $34,930,000 $226,818
$<1k 113 $15,425,000 $136,504
$3k-4k 110 $37,640,000 $342,182
$5k+ 23 $17,065,000 $741,957

$4,228 of loans were Hometown Bank's average total fees, while their most frequently occuring range of origination fees were in the $1k-2k bucket, with 239 originations.

Interest Rates

Loan Rate Originations Total Value Average Loan
2.5-3% 286 $71,610,000 $250,385
3-4% 175 $41,335,000 $236,200
<2.5% 151 $24,575,000 $162,748
4-5% 50 $6,490,000 $129,800
5-6% 18 $1,490,000 $82,778
6-7% 4 $190,000 $47,500
7-8% 1 $35,000 $35,000

During 2021, Hometown Bank's average interest rate of loans were 3.14%, while their most frequently originated rate bucket of loans were 2.5-3%, with 286 originations.

Loan Sizing

Loan Size Originations Total Value Average Loan Average Fees Average Rate
$100k-200k 256 $38,650,000 $150,977 $3,278 2.95%
$200k-400k 230 $63,690,000 $276,913 $4,589 3.00%
$100,000 or less 138 $8,910,000 $64,565 $2,115 3.45%
$400k-600k 54 $25,650,000 $475,000 $6,147 2.94%
$600k-1MM 4 $3,040,000 $760,000 $11,218 2.88%
$1MM+ 3 $5,785,000 $1,928,333 $16,815 3.51%

2021 saw Hometown Bank place emphasis on $100k-200k loans with 256 originations, totaling $38,650,000 in origination value.

Applicant Income

Applicant Income Originations Total Value Average Loan Average Fees Average Rate
$100k-150k 178 $40,880,000 $229,663 $3,889 3.09%
$150k-250k 125 $32,095,000 $256,760 $4,149 3.16%
$50k-75k 121 $18,175,000 $150,207 $3,321 2.92%
$75k-100k 104 $18,910,000 $181,827 $3,683 3.05%
$50k or less 80 $8,280,000 $103,500 $2,926 3.03%
$250k+ 57 $23,375,000 $410,088 $5,711 3.07%

Hometown Bank lent most frequently to those with incomes in the $100k-150k range, with 178 originations. The second most popular income band? $150k-250k, with 125 originations.

Applicant Debt to Income Ratio

DTI Ratio Originations Total Value Average Loan Average Fees Average Rate
20-30% 224 $49,870,000 $222,634 $3,898 3.05%
30-36% 155 $33,315,000 $214,935 $3,908 3.00%
<20% 129 $25,665,000 $198,953 $3,655 2.84%
38% 23 $4,735,000 $205,870 $3,858 3.27%
39% 18 $3,730,000 $207,222 $3,902 3.42%
37% 17 $3,425,000 $201,471 $3,824 3.30%
40% 16 $3,900,000 $243,750 $4,522 3.49%
36% 15 $3,095,000 $206,333 $3,802 3.51%
42% 14 $2,840,000 $202,857 $3,915 3.22%
44% 13 $3,065,000 $235,769 $3,049 3.24%
41% 10 $2,180,000 $218,000 $3,753 2.91%
46% 6 $1,320,000 $220,000 $4,246 2.81%
43% 5 $1,015,000 $203,000 $3,708 2.95%
>60% 4 $830,000 $207,500 $3,619 3.53%
45% 3 $345,000 $115,000 $2,873 2.75%
47% 3 $635,000 $211,667 $4,454 3.08%
48% 3 $605,000 $201,667 $4,722 2.96%
50-60% 3 $495,000 $165,000 $3,641 4.15%

Hometown Bank lent most frequently to those with DTI ratios of 20-30%, with 224 originations. The next most common DTI ratio? 30-36%, with 155 originations.

Ethnicity Mix

Applicant Ethnicity Originations Total Value Average Loan Average Fees Average Rate
White 651 $138,955,000 $213,449 $3,858 3.05%
Not applicable 19 $3,785,000 $199,211 $0 3.33%
Not provided 5 $1,495,000 $299,000 $4,202 2.73%
Asian 3 $655,000 $218,333 $3,048 3.73%
Black 2 $440,000 $220,000 $4,364 2.81%
American Indian 3 $205,000 $68,333 $1,834 4.06%
Native Hawaiian 1 $165,000 $165,000 $1,256 3.63%
Japanese 1 $25,000 $25,000 $694 4.90%

Approval Rates

Total approvals of all applications
90.89%

Hometown Bank has an average approval rate.

Pick Rate

Approvals leading to origination
89.28%

Hometown Bank has an average pick rate.

Points and Fees

Points Originations Total Value Average Loan
NA 685 $145,725,000 $212,737

Occupancy Type Mix

Dwelling Type Originations Total Value Average Loan
685 $145,725,000 $212,737

LTV Distribution

Loan to Value Originations Total Value Average Loan Average Fees Average Rate
20-40% 60 $8,130,000 $135,500 $2,669 3.00%
40-60% 132 $24,050,000 $182,197 $3,513 2.68%
60-80% 291 $71,765,000 $246,615 $4,236 3.04%
80-100% 169 $39,255,000 $232,278 $4,362 3.13%
Over 100% 4 $1,080,000 $270,000 $0 3.18%
Under 20% 29 $1,445,000 $49,828 $1,108 4.82%

Complaints

Bank Name Product Issue 2021 CPFB Complaints % of Total Issues
HomeTown Lenders, LLC Other type of mortgage Applying for a mortgage or refinancing an existing mortgage 1 100.0%

Bank Details

Branches

Bank Name Branch Branch Type Deposits (000's)
Hometown Bank 100 17th Ave W Shakopee, MN 55379 Full Service B&M $1
Hometown Bank 1000 East Cook St Redwood Falls, MN 56283 Full Service B&M $45,496
Hometown Bank 101 Creek Lane S Jordan, MN 55352 Full Service B&M $71,426
Hometown Bank 102 South Third Street St. Peter, MN 56082 Full Service B&M $44,361
Hometown Bank 1115 West Lincoln Avenue Olivia, MN 56277 Full Service B&M $59,038
Hometown Bank 309 N. Main St. Le Sueur, MN 56058 Full Service B&M $25,506
Hometown Bank 326 Broadway Cleveland, MN 56017 Full Service B&M $28,633
Hometown Bank 409 Main Street Henderson, MN 56044 Full Service B&M $17,831
Hometown Bank 641 Marketplace Drive Waconia, MN 55387 Full Service B&M $105,790
Hometown Bank 950 Vierling Drive West Eden Prairie, MN 55347 Full Service B&M $59,823

For 2021, Hometown Bank had 10 branches.

Yearly Performance Overview

Bank Income

Item Value (in 000's)
Total interest income $14,874
Net interest income $14,059
Total noninterest income $6,046
Gross Fiduciary activities income $0
Service charges on deposit accounts $330
Trading account gains and fees $0
Additional Noninterest Income $5,716
Pre-tax net operating income $7,080
Securities gains (or losses, -) $0
Income before extraordinary items $5,120
Discontinued Operations (Extraordinary gains, net) $0
Net income of bank and minority interests $5,120
Minority interest net income $0
Net income $5,120
Sale, conversion, retirement of capital stock, net $0
Net operating income $5,120

Hometown Bank's gross interest income from loans was $14,874,000.
Hometown Bank's net interest income from loans was $14,059,000.
Hometown Bank's fee based income from loans was $330,000.
Hometown Bank's net income from loans was $5,120,000.

Bank Expenses

Item Value (in 000's)
Total interest expense $815
Provision for credit losses $-413
Total noninterest expense $13,438
Salaries and employee benefits $8,467
Premises and equipment expense $1,420
Additional noninterest expense $3,551
Applicable income taxes $1,960
Net charge-offs $-50
Cash dividends $2,500

Hometown Bank's interest expense for loans was $815,000.
Hometown Bank's payroll and benefits expense were $8,467,000.
Hometown Bank's property, plant and equipment expenses $1,420,000.

Loan Performance

Type of Loan % of Loans Noncurrent (30+ days, end of period snapshot)
All loans 0.0%
Real Estate loans 0.0%
Construction & Land Development loans 0.0%
Nonfarm, nonresidential loans 0.0%
Multifamily residential loans 0.0%
1-4 family residential loans 0.0%
HELOC loans 0.0%
All other family 0.0%
Commercial & industrial loans 0.0%
Personal loans 0.0%
Credit card loans 0.0%
Other individual loans 0.0%
Auto loans 0.0%
Other consumer loans 0.0%
Unsecured commercial real estate loans 0.0%

Deposits

Type Value (in 000's)
Total deposits $458,004
Deposits held in domestic offices $458,004
Deposits by Individuals, partnerships, and corporations $440,833
Deposits by U.S. Government $0
Deposits by States and political subdivisions in the U.S. $16,923
Deposits by Commercial banks and other depository institutions in U.S. $248
Deposits by Banks in foreign countries $0
Deposits by Foreign governments and official institutions $0
Transaction accounts $285,943
Demand deposits $280,451
Nontransaction accounts $172,061
Money market deposit accounts (MMDAs) $91,345
Other savings deposits (excluding MMDAs) $53,553
Total time deposits $27,163
Total time and savings deposits $177,553
Noninterest-bearing deposits $134,360
Interest-bearing deposits $323,644
Retail deposits $453,017
IRAs and Keogh plan accounts $4,547
Brokered deposits $0
Deposits held in foreign offices $0

Assets

Asset Value (in 000's)
Total Assets $523,774
Cash & Balances due from depository institutions $16,126
Interest-bearing balances $12,653
Total securities $220,999
Federal funds sold & reverse repurchase $0
Net loans and leases $255,135
Loan and leases loss allowance $3,764
Trading account assets $0
Bank premises and fixed assets $14,297
Other real estate owned $0
Goodwill and other intangibles $7,698
All other assets $9,519

Liabilities

Liabilities Value (in 000's)
Total liabilities and capital $523,774
Total Liabilities $478,439
Total deposits $458,004
Interest-bearing deposits $323,644
Deposits held in domestic offices $458,004
% insured (estimated) $79
Federal funds purchased and repurchase agreements $0
Trading liabilities $0
Other borrowed funds $16,878
Subordinated debt $0
All other liabilities $3,557

Issued Loan Types

Type Value (in 000's)
Net loans and leases $255,135
Loan and leases loss allowance $3,764
Total loans and leases (domestic) $258,899
All real estate loans $179,889
Real estate loans in domestic offices $179,889
Construction and development loans $22,918
Residential 1-4 family construction $7,459
Other construction, all land development and other land $15,459
Loans secured by nonfarm nonresidential properties $42,631
Nonfarm nonresidential secured by owner-occupied properties $32,365
Commercial real estate & other non-farm, non-residential $10,266
Multifamily residential real estate $8,163
1-4 family residential loans $84,681
Farmland loans $21,496
Loans held in foreign offices $0
Farm loans $20,561
Commercial and industrial loans $50,030
To non-U.S. addressees $0
Loans to individuals $8,355
Credit card loans $0
Related Plans $672
Consumer Auto Loans $5,430
Other loans to individuals $2,253
All other loans & leases $64
Loans to foreign governments and official institutions $0
Other loans $60
Loans to depository institutions and acceptances of other banks $0
Loans not secured by real estate $133
Loans secured by real estate to non-U.S. addressees $0
Restructured Loans & leases $116
Non 1-4 family restructured loans & leases $116
Total loans and leases (foreign) $0

HomeTown Bank had $255,135,000 of loans outstanding in 2021. $179,889,000 of loans were in real estate loans. $22,918,000 of loans were in development loans. $8,163,000 of loans were in multifamily mortgage loans. $84,681,000 of loans were in 1-4 family mortgage loans. $20,561,000 of loans were in farm loans. $0 of loans were in credit card loans. $5,430,000 of loans were in the auto loan category.

Small Business Loans

Categorization # of Loans in Category $ amount of loans (in 000's) Average $/loan
Nonfarm, nonresidential loans - <$1MM 118 $19,275 $163,347
Nonfarm, nonresidential loans - <$100k 38 $1,391 $36,605
Nonfarm, nonresidential loans - $100-250k 48 $5,336 $111,167
Nonfarm, nonresidential loans - $250k-1MM 32 $12,548 $392,125
Commercial & Industrial, US addressed loans - <$1MM 336 $31,696 $94,333
Commercial & Industrial, US addressed loans - <$100k 202 $4,174 $20,663
Commercial & Industrial, US addressed loans - $100-250k 66 $6,300 $95,455
Commercial & Industrial, US addressed loans - $250k-1MM 68 $21,222 $312,088
Farmland loans - <$1MM 59 $7,357 $124,695
Farmland loans - <$100k 27 $1,362 $50,444
Farmland loans - $100-250k 20 $2,627 $131,350
Farmland loans - $250k-1MM 12 $3,368 $280,667
Agriculture operations loans - <$1MM 84 $5,879 $69,988
Agriculture operations loans - <$100k 42 $800 $19,048
Agriculture operations loans - $100-250k 25 $2,121 $84,840
Agriculture operations loans - $250k-1MM 17 $2,958 $174,000