TD Bank's mortgage services come with similar closing costs and interest rates as those you'd get from larger national brands such as Wells Fargo or Bank of America. However, TD's online estimates give users a more detailed picture of how mortgage points and lender credits can affect the costs of a home loan. And once you sign your mortgage, TD Bank's loan servicing carries a strong reputation for satisfactory customer experience.
- TD Mortgages: Strong Service and Flexibility
- How Do TD Mortgages Compare?
- Customer Service and Mortgage Servicing
- Mortgage Loan Products at Chase
- Where Can You Get a Mortgage With Chase?
TD Mortgages: Strong Service and Flexibility
The main advantage for borrowers at TD include flexible choices between points and lender credits, as well as a high rating for customer satisfaction with its mortgage servicing. However, TD's mortgages and other banking products are limited to homebuyers who live near the bank's branch locations in the Northeast, the Carolinas and Florida. If you are in range of TD Bank, you may find its mortgage programs useful in reducing the potential costs of mortgage insurance requirements and down payments.
We also like that TD has programs that are friendlier for first-time home buyers and others with smaller down payments: the HomeReady program from Fannie Mae and its own Right Step Mortgage. Both these programs are designed as an alternative to FHA loans, since they allow for smaller down payments and eliminate the cost of borrower-paid mortgage insurance. TD's Right Step Mortgages are available to borrowers making at least 80% of the local median income, while HomeReady mortgages require a minimum credit rating to qualify for approval.
How Do TD Mortgages Compare?
We didn't find many differences between TD Bank's mortgage rates and closing costs compared to the deals offered by most other mortgage lenders, but it does hold several potential advantages to anyone living in range of its services.
30-Year Fixed Rate Mortgage Estimates at Major Banks
|TD Bank||Chase||Bank of America||Wells Fargo|
|Taxes/Third Party Fees||$7,764||$7,230||$8,076||$7,565|
Although the monthly payment on a 30-year mortgage with TD Bank seems lower at first glance, each bank uses its own set of assumptions in its online mortgage estimates, leading to minor variations in cost. Even with such differences in approach, these lenders ended up quoting fairly similar expenses for the common 30-year fixed rate mortgage, indicating that you should ask for a formal estimate if you're truly interested in comparing the actual costs of borrowing from one lender or another.
However, TD Bank does do a better job than most in showing you how mortgage points and lender credits affect the relationship between monthly payments and closing costs on a mortgage. TD's tool presents four or five different options for each home loan product, with a range of choices that either lower your interest rate by charging you points upfront or reduce upfront expenses by raising that same interest rate. Most competing lenders won't make such information readily available, making TD the more transparent choice if you're interested in fine-tuning your mortgage rate or closing costs to fit a budget.
Customer Service and Mortgage Servicing
TD's mortgage business clearly stands out when it comes to customer satisfaction. The ratio of CFPB complaints the bank has received is less than half that of Wells Fargo, the best performer among the three major US banks. And while TD's share of originations is tiny compared to these competitors, it has maintained an above-average JD Power Rating for consumer satisfaction among borrowers who rely on its loan servicing.
Mortgage-Related Complaints at Major Banks, 2013-2017
|Company||Mortgage Originations||CFPB Complaints||Ratio||2017 JD Power Rating|
|Bank of America||1,172,113||28,187||2.40%||767|
In short, TD Bank isn't available to most borrowers in the US, but given its high reputation over the past several years, we'd recommend you get a quote from them if they operate in the area you plan to buy a home. And while there are also plenty of direct lenders who advertise their rates online and provide servicing through the phone or web-based tools, having a TD bank branch in your area may make for a better loan experience in the long run.
Mortgage Loan Products at TD Bank
TD offers both fixed and adjustable rate (ARM) mortgages that run either 15 or 30 year terms. In particular, it gives borrowers many different options for buying mortgage points or taking lender credits in order to balance interest rates and closing costs. Since a higher rate means lower fees while a reduced interest rate increases fees, TD's range of mortgage products allow borrowers to tweak the inverse relationship between upfront expenses and the lifetime cost of interest to fit their budget.
|Mortgage Product||Interest Rate||APR||Points|
|30-year fixed rate||4.00%||4.10%||-|
|15-year fixed rate||3.13%||3.45%||0.88|
|Right Step 30-year||4.00%||4.10%||0.38|
Overall, TD's mortgage rates tended to be slightly lower than similar estimates obtained from the bigger banks. Although TD Bank did lack any options for 20-year terms, few borrowers actively seek out anything other than a 30- or 15-year option. Instead, TD offers an unusually wide range of ARM loans. Combined with the Right Step mortgages and TD's participation in Fannie Mae's HomeReady program, TD's selection of mortgage products present some potentially useful choices if you're looking to refinance or have a lower down payment.
Where Can You Get a Mortgage With TD Bank?
TD Bank's status as a regional consumer bank means that it's only available in a fraction of states. You can expect to have TD as a choice for mortgages and other bank products so long as you're located in the Northeast or the southern part of the eastern seaboard.