Based in Winona, Minnesota, Merchants Bank, NA is a community-focused lender known for offering below-average mortgage rates and a streamlined single-close construction loan option. While many borrowers report strong, personalized support from local loan officers, others have experienced service hiccups during processing and escrow. Fees are typically on the low end, but buyers should still review all loan terms closely to avoid surprises.
See today’s mortgage interest rates on TrueRate.
How Merchants Bank compares to other lenders
| Headquarters | Winona, Minnesota |
| Website | merchantsbank.com |
| Rate | 0.30% lower than the median rate |
| Lender fees | $725 (median on Merchants Bank loans) |
| Savings after 1 year, compared to the median interest rate | $579 |
| Added cost after 10 years, compared to the median interest rate | $9,130 |
For a $400,000 mortgage, Merchants Bank’s rates—about 0.30% lower than the market median—and $725 in lender fees would result in estimated savings of approximately $580 in the first year and about $9,130 over 10 years compared to the median lender.
What customers are saying
Borrowers praised Merchants Bank for offering competitive mortgage rates and personalized service. Loan officers were highlighted for their ability to guide borrowers through the process efficiently, even in challenging situations such as relocating to a new town or starting a new job.
Customers appreciated the bank’s local presence and the ability to work directly with knowledgeable staff. The single-closing construction loan was noted as a convenient option for those building homes. The bank’s friendly and approachable staff contributed to a positive experience for many borrowers.
Complaints often centered on operational inefficiencies and communication gaps during critical stages of the mortgage process. Issues included delays in processing, challenges with escrow accounts, and difficulties resolving disputes related to loan servicing.
Some borrowers expressed dissatisfaction with unexpected changes in loan terms or poor customer service when addressing concerns. A few reviews mentioned frustrations with disorganized paperwork or errors that caused delays.
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.