Commerce Home Mortgage Rates Review: Today’s Best Analysis

Commerce Bank was founded in 1865 under the name Kansas City Savings Association and has significantly expanded over its 154 years of business.

While the bank is headquartered in Kansas City, Missouri, it operates branches in several neighboring states, including Colorado, Kansas, Illinois, and Oklahoma.

This lender is owned and operated by Commerce Bancshares, Inc., which was listed as the 63rd largest U.S. bank holding company in 2018, as reported by the Federal Reserve.

Commerce Home Mortgage Facts

• Founded in 1865

• Offers a standard variety of mortgage products, including conventional fixed- and adjustable-rate, FHA, USDA, VA, and construction loans

• Only works with borrowers looking to finance a home in MO, KA, IL, OK, and CO

• The website lacks specific information on down payment minimums and credit score requirements

• Fixed-rate FHA loans can be secured with as little as 3.5 percent down

• Most branches have earned an A+ rating from the BBB

Overall

Commerce Bank has helped its customers obtain mortgages with competitive interest rates and flexible terms for over 150 years.

The bank offers a diverse selection of home loans that are well-suited to a wide range of financial needs.

This includes first-time homebuyers, moderate-to-low income applicants, and borrowers interested in moving to a rural or suburban community.

This lender’s customer-focused approach earned it a spot on Forbes’ 2019 list of America’s best banks, due, in part, to its long-standing commitment to affordable home financing solutions.

Commerce Bank is an excellent example of a strong “all-around” lender, with over 150 branches available to homebuyers looking for a traditional face-to-face banking experience.

Online applicants can benefit from the bank’s extensive digital resources, which include educational articles, loan and rate calculators, and a simple rate quote process.

Borrowers who plan to build their own home may benefit from Commerce’s construction loan program. The program simplifies the financing process and provides up to $2 million toward labor, materials, and land costs.

On the downside, this lender does not list specific qualification guidelines for most of its mortgage products. Online users may have trouble locating down payment minimums, credit score requirements, and information on debt-to-income ratios.

This will likely complicate the comparative shopping process for homebuyers who want an online lending experience, though you can apply for a mortgage directly through Commerce Bank’s website.

Current Commerce Mortgage Rates

Commerce Loan Specifics

Commerce Bank provides a standard selection of mortgage products to its customers, including conventional fixed and adjustable rates, Federal Housing Administration (FHA), U.S. Department of Agriculture (USDA), Veterans Affairs (VA), and construction loans.

The bank’s relatively small service area allows it to offer home financing solutions that are uniquely tailored to the needs of Midwestern homebuyers.

While Commerce does operate a large number of physical branches across several states, it only supplies mortgages to residents in Missouri, Kansas, Illinois, Oklahoma, and Colorado.

Fixed-Rate Loans

This conventional mortgage option is great for borrowers who plan to settle down long-term. It features consistent interest rates and monthly payment amounts over the full life of the loan.

Home buyers can select a loan term of 10, 15, 20, or 30 years for their mortgage, though longer repayment periods typically come with higher rates. Down payments of less than 20 percent require mortgage insurance, which is standard for home loans of this type.

Adjustable-Rate Loans

Home buyers who are unsure of their plans may prefer this variable financing option, as it benefits more from lower interest rates than its fixed-rate counterpart.

This mortgage type starts with an initial fixed-rate period, after which interest rates and monthly payment amounts will automatically adjust to the market index. Borrowers can select from several flexible loan term options, including 5/1, 7/1, or 10/1 ARMs.

FHA Loans

This government-backed financing program is well suited to first-time home buyers and those who are unable to qualify for traditional home loans.

Commerce Bank offers fixed-rate FHA mortgages with terms of 15 or 30 years, which are insured by the Federal Housing Administration for added security.

Home buyers can secure a competitive interest rate with as little as 3.5 percent down, even if their credit score is below the industry average.

VA Loans

Eligible military veterans and active duty service members can take advantage of this specialty mortgage type, which is fully backed by the U.S. Department of Veterans Affairs.

Unlike most home loans, a VA mortgage can be obtained with 0 percent down and does not require private mortgage insurance.

Qualified borrowers with credit scores as low as 620 may be eligible, though certain restrictions do apply. VA loans can be negotiated either fixed- or adjustable-rate mortgages with loan terms of 15 or 30 years.

USDA Loans

This home loan option was created to support moderate-to-low-income borrowers and those looking to move to designated rural and suburban areas.

USDA loans provide 100 percent financing solutions to qualified applicants and feature some of the most competitive rates available on the market.

Construction Loans

Borrowers planning to build their own homes may be eligible for this specialty program. It separates the financing process into two parts: a loan for construction and an end loan (or mortgage). Commerce

The bank extends up to $2 million to cover labor, materials, and land costs during the first phase of the program, with a loan term of 12 months and options to extend the repayment period.

Once construction is complete, the bank works with borrowers to negotiate a standard mortgage with flexible terms and competitive rates.

Commerce Mortgage Customer Experience

Commerce Bank provides lending services tailored to the specific needs of Midwestern homebuyers and takes a customer-focused approach to mortgage origination and support. As of 2023, this lender has $32.8 billion in assets and 8.85 percent revenue growth.

The bank operates in 11 States namely, Colorado, Illinois, Indiana, Iowa, Kansas, Michigan, Missouri, Ohio, Oklahoma, Tennessee, and Texas. Interested homebuyers can learn more by visiting a local branch in person, contacting a lending agent by phone, or by visiting the lender’s website.

Online customers can access a wide array of educational resources through the bank’s website, which discusses the mortgage application and origination process in detail.

Commerce’s website houses a rich store of information and digital tools that can help applicants understand the nuances of home financing, including loan calculators, topical articles, tip sheets, and FAQ pages.

Borrowers can request a personalized rate quote by submitting their information online, but entering your Social Security number is required. Homebuyers looking for an online lending experience can apply through the bank’s website by filling out a standard mortgage application.

This lender’s website is markedly easy to use and chock-full of useful information that can help you land the best available interest rate on your next mortgage.

Commerce Lender Reputation

Commerce Bank has been in business for over 150 years and has earned a reputation as a trusted lender with a long history of success. Many of the bank’s physical branches have secured an A+ rating from the BBB, though the agency has formally accredited only a few.

Commerce Mortgage Qualifications

LOAN TYPE	RATE TYPE	LOAN TERMS
Fixed-Rate Loans	Fixed	10, 15, 20, or 30 years
Adjustable-Rate Loans	Variable	5/1, 7/1 or 10/1 ARMs
FHA Loans	Fixed	15 or 30 years
VA Loans	Fixed or Variable	15 or 30 years
USDA Loans	Fixed	30 years
Construction Loans	N/A	N/A

Each of Commerce Bank’s mortgage offerings has unique qualification guidelines, but there is some overlap between its conventional fixed and adjustable-rate loans.

Unfortunately, the bank does not list any specific information about down payment minimums for these standard home financing products, which may make it difficult to compare your options. Most lenders require down payments of at least 5 percent for conventional mortgages.

The more money you’re able to put down upfront, the better rate you’re likely to receive. Borrowers who are unable to make a sizable down payment can take advantage of Commerce’s government-backed programs.

For example, FHA loans can be secured with just 3.5 percent down, while the USDA program requires no down payment at all.

A credit score is another important metric that lenders use to determine eligibility and calculate interest rates. Commerce Bank does not list its credit score requirements online, though many of its government-backed programs feature standardized guidelines.

Borrowers can obtain an FHA loan with scores as low as 580, making it a strong option for first-time home buyers and those with less-than-perfect credit.

USDA and VA mortgages are available to home buyers with scores of 620 and above but feature strict qualification standards compared to other home financing programs.

Home buyers who lack robust credit histories may also face some difficulty qualifying for a conventional mortgage, as it is unclear whether Commerce Bank considers non-traditional credit information.

The best way to learn more about this lender’s eligibility guidelines is to contact a lending agent directly by phone, email, or by visiting one of its physical branches in person.

Commerce Phone Number & Additional Details

• Homepage URL: https://www.commercebank.com/
• Company Phone: 1-816-760-3663
• Headquarters Address: 1000 Walnut Street, Kansas City, Missouri 64106

Conclusion

Commerce Bank stands out as a seasoned mortgage provider with a history stretching over 150 years, showcasing a profound understanding of the Midwestern homebuyers’ needs.

By offering a diverse range of mortgage products, from conventional fixed and adjustable rates to government-backed solutions such as FHA, VA, and USDA loans, the bank caters to an array of financial circumstances and aspirations.

Their emphasis on customer experience is evident through an intuitive online platform stocked with educational resources and tools designed to simplify the home financing journey.

However, it’s paramount for prospective borrowers to understand the bank’s service limitations and geographical constraints. With a long-standing reputation and customer-centric approach, Commerce Bank has positioned itself as a reliable mortgage solution for many in the Midwest.

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