Frandsen Bank & Trust, headquartered in Arden Hills, Minnesota, serves communities across the Midwest with a focus on relationship-based banking. The bank offers competitive mortgage rates and flexible loan programs tailored to local buyers. Its customer service earns high marks, but borrowers should always review closing costs carefully—Frandsen’s fees are lower than the median, but fee-free lending options may present even deeper cost savings.
See today’s mortgage interest rates on TrueRate.
How Frandsen Bank & Trust compares to other lenders
| Headquarters | Arden Hills, Minnesota |
| Website | frandsenbank.com |
| Rate | 0.21% lower than the median rate |
| Lender fees | $775 (median on Frandsen Bank & Trust loans) |
| Savings after 1 year, compared to the median interest rate | $1,055 |
| Savings after 10 years, compared to the median interest rate | $7,205 |
| Added cost after 1 year (vs. Tomo Mortgage) | $1,523 |
| Added cost after 10 years (vs. Tomo Mortgage) | $3,980 |
For a $400,000 mortgage, Frandsen Bank & Trust’s rates—about 0.18% lower than the market median—and $970 in lender fees would result in borrower savings of over $7,000 over 10 years compared to a typical lender. Buyers should consider how long they plan to keep a loan with Frandsen Bank & Trust when evaluating mortgage options with them.
What customers are saying
Borrowers praised Frandsen Bank & Trust for its personalized service and localized expertise. Customers appreciated the bank’s community-oriented approach, noting that loan officers were responsive and helpful throughout the mortgage process.
The bank offers a variety of mortgage products, including specialized loans that cater to specific borrower needs. Some customers valued the flexibility and adaptability of these programs.
Complaints frequently mentioned operational inefficiencies, particularly in the approval and underwriting process. Borrowers reported delays and frustrations with communication gaps during critical stages of the mortgage process.
Some reviews highlighted difficulties with the bank’s digital tools, such as the mobile app, which was criticized for being outdated and difficult to use for managing payments and accessing account information.
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.