Mortgage lender · Westlake, TX · LEI 549300INFJ8TYNZ1G568

Charles Schwab Bank review: approval odds, rates and grade (2025)

Charles Schwab Bank earns an A, placing it in the top fifth of mid-size mortgage lenders. It turned down 5.2% of the applications it decided on in 2025, which ranks in the 71st percentile for approval odds. Its median loan was priced 0.19 points below the average prime offer rate, ranking in the 93rd percentile on pricing. Compared against 581 mid-size mortgage lenders using 2025 HMDA filings.

6.5kApplications2025
93.0%Originatedof applications
5.2%Decision denial ratenational 22.6%
5.58%Median ratenational 6.63%
$6.2BLoan volume51 states

Charles Schwab Bank at a glance, 2025

Every figure is from the lender's own HMDA filing. "vs national" compares with all lenders combined.

5.2%Denial rate (all applications)-12.77 pts vs national
5.2%Denial rate (decided applications)-17.37 pts vs national
93.0%Origination rate+34.96 pts vs national
0.1%Withdrawn by applicant
0.0%Closed for incompleteness
5.58%Median interest rate-1.05 pts vs national
-0.19Median rate spread (pts over APOR)-0.44 pts vs national
$865,000Median loan amount
$5,380Median total loan costs
$390kMedian applicant income
64%Median loan-to-value
0High-cost (HOEPA) loans

How the A grade breaks down

Each component is a percentile rank among 581 mid-size mortgage lenders. Higher is better. Components the lender does not report are left out and the weights redistributed.

Approval oddsdecision denial rate, weight 45%

71st5.2% denied

Pricingmedian rate spread over APOR, weight 30%

93rd-0.19 pts

Processwithdrawn + incomplete share, weight 15%

99th0.1%

Closing coststotal loan costs ÷ loan amount, weight 10%

96th0.62% of loan

Trend, 2023–2025

YearApplicationsOriginatedDenial rateDecision denialMedian rateVolume
20232,9972,7277.2%7.2%5.98%$2.6B
20244,4964,1426.3%6.3%6.05%$3.8B
20256,5226,0655.2%5.2%5.58%$6.2B

What Charles Schwab Bank lends

Applications by purpose and loan type in 2025, with the denial rate for each. A lender's mix explains a lot of its headline rate: HELOCs and FHA loans are denied far more often than conventional purchase loans.

By loan purpose

Home purchase 4,219 65% · 4.5% denied
Refinance 1,223 19% · 5.6% denied
Cash-out refinance 464 7% · 6.7% denied
Home improvement 199 3% · 10.1% denied
Other / HELOC 417 6% · 7.9% denied

By loan type

Conventional 6,522 100% · 5.2% denied

Also: 443 home-equity lines, 0 reverse mortgages, 0 manufactured homes, 579 investment properties.

Why Charles Schwab Bank denies applications

Primary reason reported for each of the 340 denials in 2025. Lenders can cite up to four reasons; this is the first one listed.

Collateral 135 40%
Debt-to-income ratio 132 39%
Unverifiable information 26 8%
Other 25 7%
Insufficient cash 10 3%
Credit history 6 2%
Employment history 3 1%
Incomplete application 3 1%

How these reasons compare nationally →

Who gets approved at Charles Schwab Bank

Decision denial rate by applicant profile. Groups with fewer than 20 applications are omitted.

Applicant incomeApplicationsOriginatedDecision denial rate
Under $50k302223.3%
$50k – $100k23219712.1%
$100k – $150k4073766.9%
$150k – $250k1,0539716.2%
Over $250k4,6674,3804.3%
Applicant ageApplicationsOriginatedDecision denial rate
Under 2553485.7%
25–346346003.8%
35–441,3171,2235.7%
45–541,1631,0735.9%
55–641,6531,5315.6%
65–741,2481,1823.6%
Over 744544087.1%

Where Charles Schwab Bank lends

51 states and 696 counties in 2025. Click a state for the lender's full record there.

StateApplicationsOriginatedDenial rateMedian rateRank in state
California1,8801,7485.3%5.50%#110
Florida5454859.5%5.55%#232
Texas3793594.0%5.50%#306
Colorado3333143.6%5.60%#138
Washington2832654.6%5.50%#157
Arizona2452333.7%5.63%#161
Illinois2182006.0%5.63%#237
New York2111927.6%5.63%#202
New Jersey1941784.6%5.78%#201
North Carolina1831724.4%5.63%#239
Massachusetts1791684.5%5.50%#174
Georgia1521462.6%5.75%#277
Virginia1391322.9%5.63%#250
Nevada1231144.9%5.63%#132
South Carolina1141057.0%5.63%#243
Tennessee1101014.6%5.50%#304
Oregon105973.8%5.50%#166
Connecticut98925.1%5.59%#169
Maryland98933.1%5.68%#232
Pennsylvania95922.1%5.73%#381
Utah88842.3%5.38%#138
Michigan67616.0%5.75%#320
Ohio63596.4%5.73%#378
Minnesota58571.7%5.80%#276
Idaho50466.0%5.49%#164
Indiana48464.2%5.63%#354
Wisconsin39355.1%5.75%#363
New Hampshire37355.4%5.75%#148
Missouri36360.0%5.63%#381
District of Columbia31296.5%5.55%#98
Montana30276.7%5.63%#120
Alabama28267.1%5.88%#367
Hawaii282414.3%5.49%#117
Maine232013.0%5.38%#167
New Mexico23194.4%5.88%#192
Rhode Island21204.8%5.50%#142
Delaware20200.0%5.44%#187
Kentucky20190.0%5.55%#350
Arkansas19185.3%5.80%#289
Oklahoma151213.3%5.59%#356
Louisiana14137.1%5.58%#350
Wyoming14137.1%5.75%#123
Kansas13117.7%5.68%#337
Nebraska13130.0%5.63%#230
West Virginia990.0%5.88%#264
Mississippi8712.5%5.75%#296
Iowa770.0%5.88%#386
Vermont7528.6%5.38%#132

Frequently asked questions

Charles Schwab Bank denied 5.2% of the applications it decided on in 2025. The national figure across all lenders was 22.6%. On approval odds it ranks in the 71st percentile of mid-size mortgage lenders.

The most common reason Charles Schwab Bank gave in 2025 was "collateral", cited on 39.7% of its denials. Lenders report up to four reasons per denial to the CFPB; the full breakdown is on this page.

The median interest rate on loans Charles Schwab Bank originated in 2025 was 5.58%, and its median rate spread over the average prime offer rate was -0.19 points. Rates on this page are what borrowers actually got, not advertised rates.

In 2025, 65% of its applications were for home purchases, 26% for refinancing (including cash-out), and 9% for home improvement or other purposes. By loan type: 100% conventional, 0% FHA, 0% VA.

Every figure on this page comes from the Home Mortgage Disclosure Act (HMDA) Loan/Application Register published by the CFPB, which lenders are required by federal law to file. We add the grade and the comparisons; we do not add facts.

About this data. HMDA data is published once a year by the CFPB. The current release covers applications acted on in calendar year 2025. Figures describe applications the lender acted on, including loans it later sold. Interest rates and costs are medians on originated loans only; some depository institutions are exempt from reporting pricing fields, which is why a few cells read "—". MortgageGrades is not affiliated with Charles Schwab Bank. Data sources · Methodology