Deerwood Bank is a community-focused, full-service bank and direct mortgage lender headquartered in Deerwood, Minnesota. Serving customers throughout Minnesota since 1910, Deerwood Bank is known for its relationship-based approach, local expertise, and a broad suite of mortgage solutions designed to simplify the home financing process.
See today’s mortgage interest rates on TrueRate.
How Deerwood Bank compares to other lenders
| Headquarters | Deerwood, Minnesota |
| Website | deerwoodbank.com |
| Rate | 0.14% less than the median rate |
| Lender fees | $675 (median) |
| Savings after 1 year, compared to the median interest rate | $819 |
| Savings after 10 years, compared to the median interest rate | $4,839 |
| Added cost after 1 year (vs. Tomo Mortgage) | $1,760 |
| Added cost after 10 years (vs. Tomo Mortgage) | $6,345 |
For a $400,000 mortgage, Deerwood Bank ’s rates and lender fees will likely result in savings of over $800 in the first year and around $4,800 after 10 years compared to the median lender. Borrowers should rate shop and compare Deerwood to lower cost lenders, such as Tomo Mortgage, to see if even greater long-term savings are possible.
What customers are saying
Deerwood Bank’s mortgage lending receives mostly negative sentiment on third-party platforms. On Yelp, customers frequently report poor customer service, citing issues such as errors in processing stop payments, rude or condescending staff, and a lack of accountability when mistakes occur. Some reviewers describe frustrating experiences with account closures and inadequate notification, leading to inconvenience and dissatisfaction.
It is notable that there are isolated positive remarks about individual employees who worked hard to resolve issues and made customers feel valued, as well as praise for helpful mortgage officers during PPP loan processing. Overall, negative experiences with communication, service quality, and error resolution dominate public reviews of Deerwood Bank’s mortgage lending.
How to compare mortgage lenders
Interest rates. Comparing rates between lenders isn’t always straightforward. Many promote low headline rates that require paying “points” upfront to buy down the interest rate. To make a true comparison, focus on the par rate (0 points) and the APR, which reflects both the interest rate and any lender fees. Even small differences can translate into significant savings over the life of the loan.
Lender fees or loan origination fees. Many lenders charge fees that add thousands to the cost of a loan. It’s important to look at both the rate and the fees together to understand the true cost of borrowing. For a $400,000 mortgage, avoiding even a $1,000 fee could contribute to meaningful savings in the first year and over the long term.
On-time close rate. Most lenders do not publicly share their on-time close rates. However, it’s a critical factor—especially if your home contract has tight deadlines. Asking about their process for meeting close dates, including underwriting and document review timelines, can give you more confidence when choosing a lender.
Pre-approval and offer letters. Some lenders offer fast pre-qualifications that may not be fully underwritten, which can weaken your offer in competitive markets. It’s important to ask whether a lender’s pre-approvals are fully underwritten and how credible their letters are when presented with an offer.
Customer satisfaction. If detailed customer review data isn’t readily available, check third-party review sites or ask the lender for references. It’s important to understand how they handle communication, responsiveness, and issue resolution throughout the loan process.
Employee reviews. Company culture often influences how clients are treated. A lender with strong employee satisfaction typically delivers better service, more organized processing, and a smoother overall experience for borrowers.
To better understand how we compare mortgage rates fairly, see our TrueRate Methodology.
If you’re ready to start your journey to homeownership, get pre-approved with Tomo Mortgage today.