An online lender called “Owning” is looking to shake up the mortgage industry with what it refers to as “ridiculously low rates.”
In the past, they doubled as a mortgage lender and real estate company, offering mortgage refinancing at low rates and a variety of home buying and selling tools including iBuying.
But in early 2021, Owning was acquired by Chicago-based Guaranteed Rate, and will act as its lead generator going forward.
The company now focuses on helping aspiring home buyers finance a property and existing homeowners interested in securing a lower rate on their home loan.
Aside from attempting to make the process easier via new technology, they also offer an on-time closing guarantee. Read on to learn more.
Owning Fast Facts
Direct-to-consumer mortgage lender offering home purchase loans and refinances
Founded in 2018, headquartered in Orange, California
Acquired by Guaranteed Rate in early 2021
Licensed to lend in 43 states and the District of Columbia
Specialize in low-rate mortgage refinances and home purchases
BBB accredited with an ‘A+’ rating at the moment
4.9-star rating on Google based on over 2,100 customer reviews
Not available in Alaska, Kentucky, Nevada, New York, Rhode Island, Utah, or Vermont
What Owning Offers
Home purchase loans
Refinance loans (rate and term and cash out)
Conventional loans backed by Fannie Mae and Freddie Mac
Jumbo loans that exceed the conforming limit
FHA/VA/USDA loans
Fixed-rate and adjustable-rate options
Lend on primary, second, and investment properties
The Orange, CA-based company offers two core products to consumers looking for a home loan.
A refinance product for existing homeowners. And a home purchase product for those looking to purchase a property.
In the past, they offered more, including a no cost refinance, a zero-down home purchase, an iBuyer service, and a real estate agent rebate.
But since being acquired by Guaranteed Rate in 2021, they essentially became the online lead generator for their parent company.
This means keeping things simple, leading with their mortgage rates, and leaning on the latest technology to do things quickly and efficiently.
It’s unclear if Owning will still refinance your existing home loan with no closing costs, including third-party fees like appraisal, credit report, escrow, title insurance, and more.
That offering was similar to CashCall’s No Closing Cost Mortgage and the companies appeared to compete in the SoCal market.
But nowadays many lenders require borrowers to pay discount points to keep interest rates at reasonable levels.
Anyway, my guess is you can utilize a lender credit to keep closing costs down if that’s your desire.
Owning Mortgage Rates
As noted, Owning has become a streamlined, online-only mortgage lender. This means they offer a fully-digital process and in their words, “low rates.”
But you don’t have to take their word for it. If you visit their website, you’ll see their mortgage rates front and center at the top of the page.
They also have a calculator that lets you adjust a couple inputs to generate a real-time quote.
Both a 30-year fixed and 15-year fixed are listed as options, though other loan types may also be available depending on market conditions.
If you click on “rates,” you can access the more robust version of their online rate calculator.
Be sure to click on the loan assumptions to see what they’re basing rates on, e.g. purchase price, down payment, FICO score, discount points required, etc.
How to Apply
To get started, simply visit their website from your computer or smartphone. From there, you can use their rate calculator to determine today’s rates.
Or you can click on “get started” to fill out a short online lead form. You’ll also see a phone number and email address if you want to reach out directly.
Once you move forward, their loan process is mostly paperless. It allows for the e-signing of disclosures, importing bank account information, and uploading documentation.
All in all, they appear to make it easy to apply for a home loan. And they aim to close in as few as 14 days.
On Time Closing Guarantee
If you’re concerned about timing, take comfort in Owning’s On Time Closing Guarantee.
Simply put, if your loan does not close by the original specified closing date (purchase or refinance) the company will mail a check for $2,000 within 90 days of the request being submitted.
Eligible borrowers must request a refund check in the mail by submitting a request to [email protected] within 30 calendar days of loan closing.
However, there a lot of exclusions. The borrower’s down payment must be 5%+, it can’t be a USDA loan, and the borrower can’t own two or more properties.
It’s unclear if that total includes the subject property. And of course the standard exclusions apply like appraisal delays, force majeure events, and so on.
Be sure to speak to your loan officer ahead of time to iron out these details.
Owning Reviews
On Google, Owning has a stellar 4.9/5-star rating from over 2,100 customer reviews at last count (March 2023).
Over at Zillow, they’ve got a 4.80/5 from about 265 reviews, and at Bankrate a 4.9/5 from roughly 40 reviews.
They aren’t Better Business Bureau (BBB) accredited, but they do hold an ‘A+’ rating based on customer complaints.
And they have a solid 4.81/5 rating from nearly 100 customer reviews on the BBB website, which is pretty impressive.
To sum things up, this streamlined, no-frills online lender offers the basics that most consumers are probably looking for.
A possible negative might be a lack of physical locations, but for those savvy enough to go the online route, they could be a breath of fresh air.
Assuming their mortgage rates are competitive, they could be a good option for those refinancing or even a prospective home buyer.
Just be sure to take the time to compare Owning to other companies to ensure you get the best deal and quality service.
Owning Pros and Cons
The Good
Advertise their mortgage rates online
Offer a fully-digital home loan process
Can apply online or via smartphone
Plenty of loan programs to choose from
Excellent customer reviews
A+ BBB rating
On-time closing guarantee
Staff also speak Spanish and Vietnamese
The Maybe Not
Aren’t licensed in Alaska, Kentucky, Nevada, New York, Rhode Island, Utah, or Vermont
Rising mortgage rates have pushed potential home buyers to the sidelines and slowed home sales. In an effort to simulate the sluggish market, both sellers and mortgage lenders have begun to woo would-be homeowners with rate buydowns and discount points that make home loans more affordable for buyers.
“Those kinds of products have been around and typically only get utilized when lenders are desperate to create a need for a consumer,” says Gordon Miller, president of North Carolina-based Miller Lending Group.
So before you use a rate buydown or discount points to lower the interest rate on your mortgage, it’s important to understand how they work and when it makes sense for you.
How does a mortgage rate buydown work?
Buydowns and discount points (otherwise known as mortgage points) are both ways to lower your mortgage’s interest rate by paying extra money when you take out the mortgage. The terms are sometimes used interchangeably, so it’s important to understand how your individual mortgage lender is defining the buydown. “Make sure you get a copy of the [mortgage] note itself. So that [way] you understand fully all the terms and/or restrictions of the buydown,” Miller says.
What are discount points?
When you pay for discount or mortgage points, you permanently lower your mortgage’s interest rate (as opposed to buydowns which only temporarily lower the rate).
You’ll generally pay 1% of the total loan amount for each point and receive a 0.25% rate reduction, but the cost and discount vary depending on the market and lender. “What you get with one point from one lender could be worlds different than with another lender,” says Jennifer Beeston, mortgage educator and senior vice president at Guaranteed Rate.
What are temporary buydowns?
A temporary buydown lowers the interest rate to a certain percentage, which then increases each year until it returns to the original rate. Common temporary buydown terms are 2-1 and 1-0, where the first number is the rate reduction you receive in the first year and the second number is the rate reduction for year two.
With a 2-1 buydown, a 6.25% mortgage rate would be cut to 4.25% the first year, increase to 5.25% in year two and return to 6.25% in the third year. Here’s what that looks like for a $350,000 loan balance.
Mortgage rate buydown example
Interest rate
Monthly payment
Monthly savings
Yearly savings
Year 1
4.25%
$1,722
$433
$5,196
Year 2
5.25%
$1,933
$222
$2,664
Year 3
6.25%
$2,155
$0
$0
A temporary buydown is typically paid for by either the seller, homebuilder or lender and it effectively offsets a portion of the buyer’s monthly payment. From the example above, it would cost $7,860 for the full 2-1 buydown, which is the total amount the buyer saves. The money used to lower the buyer’s monthly payments is deposited into an account and taken out each month by the mortgage loan lender. Keep in mind, with a temporary buydown the borrower needs to qualify for the home loan based on the full interest rate after the buydown expires.
Regardless, of whether or not a rate buydown makes sense for your situation, you want to ensure you’re getting the best deal from the start. And if you’re not comparing offers from multiple mortgage lenders, there’s a good chance you’re leaving money on the table. Select ranked the lenders below as some of the best mortgage lenders on the market:
Rocket Mortgage
Annual Percentage Rate (APR)
Apply online for personalized rates
Types of loans
Conventional loans, FHA loans, VA loans and Jumbo loans
Terms
8 – 29 years, including 15-year and 30-year terms
Credit needed
Typically requires a 620 credit score but will consider applicants with a 580 credit score as long as other eligibility criteria are met
Minimum down payment
3.5% if moving forward with an FHA loan
Terms apply.
SoFi
Annual Percentage Rate (APR)
Apply online for personalized rates; fixed-rate and adjustable-rate mortgages included
Types of loans
Conventional loans, jumbo loans, HELOCs
Terms
10 – 30 years
Credit needed
Minimum down payment
Pros
Fast pre-qualification
Provides access to Mortgage Loan Officers for guidance
0.25% price reduction when you lock in a 30-year rate for a conventional loan
Offers up to $9,500 cash back if you purchase a home through the SoFi Real Estate Center
Cons
Doesn’t offer FHA, VA or USDA loans
Mortgage loans are not available in Hawaii
Ally Home
Annual Percentage Rate (APR)
Apply online for personalized rates; fixed-rate and adjustable-rate mortgages included
Types of loans
Conventional loans, HomeReady loan and Jumbo loans
Terms
15 – 30 years
Credit needed
Minimum down payment
3% if moving forward with a HomeReady loan
Pros
Ally HomeReady loan allows for a slightly smaller downpayment at 3%
Pre-approval in just three minutes
Available in all 50 U.S. states
Online support available
Doesn’t charge lender fees
Cons
Doesn’t offer FHA loans, USDA loans, VA loans or HELOCs
What you need to know before buying a lower mortgage rate
Understanding how discount points and rate buydowns work is essential when you’re shopping for a mortgage. A lender may offer an exceptionally low rate, only to have discount fees built into the deal. So you’ll want to pay attention to all aspects of the loan, not just the rate.
“Hardcore rate shoppers, they put zero value on service, expertise, education, they just are so rate focused that often they end up with the worst deal,” Beeston says.
If you’re paying for a discount, it’s important to always understand what you’re getting in return. Paying for a lower rate over the full 30-year loan term may look like it’ll save you money in the long run, but that doesn’t account for how likely you are to sell the home, refinance your loan or pay off your mortgage early. In each of those cases, the fees you pay upfront could end up being higher than what you saved. And researchers have shown that “borrowers overestimate how long they will stay with the mortgage.”
A temporary buydown can make sense since the buyer isn’t the one paying for it. However, even in that scenario, a buydown could come at the cost of other seller concessions. So you’ll want to consider the tradeoffs by asking yourself these three questions:
1. Could you get the same rate by refinancing later?
Whether or not you can refinance depends on several factors, including the type of mortgage.
For conventional loans, you’ll need at least 5% equity (loan-to-value of 95%) for a rate and term refinance, but you’ll typically only get the best rates if you have 20% equity in your home or more. Right now there are very few cases where it makes sense to buy down the rate, Beeston says. However, if the borrower took out a conventional loan with 3% down, “I think it can make sense because if rates drop they likely will not have enough equity to refinance immediately.”
There are streamlined refinancing options for both FHA and VA loans, which can make refinancing simpler with these loans than with a conventional loan. So it may make less sense for these types of borrowers to pay for a lower rate. “The last thing I want is my veterans spending a nickel to buy down a rate that they’re likely to refinance within the next year because then it’s just lighting money on fire,” she says.
Every time you refinance you have to consider the upfront closing costs. Your exact closing costs vary depending on the lender, the loan, where you live and the amount you’re borrowing. But refinance fees are thousands of dollars on average and can easily wipe out any potential savings you get by securing a lower rate.
However, you may be able to negotiate with the lender to receive credits to cover your fees in exchange for a higher interest rate. Lender credits are essentially reverse discount points and you may be able to use them to avoid fees when you refinance.
2. What are you giving up for the buydown?
Recently the housing market has shifted and sellers are working harder to entice buyers. “Because of the market we’ve been encouraging our clients to get the seller to pay closing costs, and we’ve had really good success with that,” Beeston says.
Just keep in mind that when sellers offer a buydown, that money has to come from somewhere. And funding the buydown might come at the cost of the seller reducing the overall purchase price or paying for closing costs. Depending on your preferences and financial situation, those concessions may be more important to you than a buydown.
3. Is this a good deal without the discount?
With any sort of buydown or discount points, you’ll want to ensure the starting rate is a good deal. Always compare loan offers from multiple lenders to ensure any discount is based on the best deal you can qualify for.
“Never get one [quote] because the industry can operate like a bad flea market,” Miller says. And be wary of any lender that is willing to price match because, “that’s more a game of, Oh, I guess you called someone else and found out I was charging too much. Okay. Got me. I’ll match it,” Miller says.
Bottom line
With mortgage rates sitting at twice what they were just over a year ago, it can be tempting to do everything in your power to get a lower rate. But your interest rate is only one aspect of your home loan and the home-buying process in general. You’ll want to pay attention to your mortgage’s closing costs because the fees you pay can wipeout the potential savings from securing a lower mortgage rate.
If you’re considering taking advantage of a rate buydown or discount points, be sure you fully understand what you’re getting, what it costs and what you may have to give up to get it.
Catch up on Select’s in-depth coverage of personal finance, tech and tools, wellness and more, and follow us on Facebook, Instagram and Twitter to stay up to date.
Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.
If you have ever applied for life insurance, then you know that there are several important criteria that you need to keep in mind.
One of these is the amount of insurance protection that you will need to have. This is because you will want to ensure that those whom you care about will have enough in benefits to pay certain debts or have enough funds in order to pay their ongoing living expenses to go on and not have to drastically alter their lifestyle.
But there is also another extremely important factor that you must also include in your purchase decision. This is the actual company in which you purchase the coverage through.
This is because you will want to make sure that the insurance carrier is strong and stable financially and that it is known for paying out its claims to its policyholders. One such insurer that has fit into this mold for many years is SBLI Life Insurance Company.
The History of SBLI Life Insurance Company
SBLI has been known for many years as being “The No Nonsense Life Insurance Company.” This insurer has been in the business of providing coverage to its customers for nearly 110 years. The company’s founder, Louis D. Brandeis, started the insurance carrier during one of the worst stock market crashes in United States history, as well as at a time when the insurance industry in the U.S. was thought to be corrupt and very expensive.
Because of this, Brandeis – who was an advocate for trustworthy and affordable life insurance for the American working family – decided to start the company. He did so by working to pass Chapter 561 of the Acts of 1907 – and act that essentially allowed savings banks that were incorporated under Massachusetts laws to establish departments to issue annuities and life insurance. Today, the company’s headquarters are still located in Woburn, Massachusetts.
Throughout the years, the company grew quite a bit – and by 1930, it already had $100 million of life insurance in force. By 1964, it had reached the mark of $1 billion of life insurance in force. Just 34 years later, in 1998, it was at $20 billion in force, and by 2003, the company had surpassed the $50 billion mark. As of 2012, SBLI had more than $125 billion of life insurance in force.
SBLI Life Insurance Company Review
SBLI is known for being a strong contender in the insurance industry. It is also extremely involved in the communities that it serves. It contributes and/or is a sponsor of numerous charitable organizations, including the:
American Heart Association (AHA)
Massachusetts General Hospital Home Base Program
Boston Marathon Jimmy Fund Walk
New England Center and Home for Veterans
The Massachusetts Affordable Housing Alliance (MAHA)
The Rodman Ride for Kids
Woburn Memorial High School
The New England Center for Children
The company has also earned endorsements from organizations such as the:
Massachusetts Bankers Association
AAA Southern New England
AAA Merrimack Valley
For those who are interested in a policy, or who are current policyholders and who need assistance, the company’s customer services representatives are easy to get in touch with. They can be reached via toll-free phone line during business hours. There is also an email form or a fax that can be sent into the company. Business hours are between the hours of 8:00 a.m. and 9:00 p.m. Eastern time Monday through Friday.
Financial Strength and BBB Grade of SBLI Life Insurance Company
Over the years, SBLI Life Insurance Company has consistently earned high ratings from the insurer ratings agencies. This shows the company’s ongoing financial strength and stability. These ratings include the following:
A+ (Superior) from A.M. Best
A- from Standard & Poor’s
Good from Weiss Ratings
Since 2007, SBLI Life Insurance Company (The Savings Bank Life Insurance Company of Massachusetts) has been an accredited member of the Better Business Bureau (BBB). It has received a grade of A+ from the BBB, on an overall grading scale of A+ to F.
Throughout the past three years, SBLI has closed two complaints through the Better Business Bureau, and no complaints over the past 12 months. Of these two complaints, one centered on issues with the company’s products/services, and one had to do with billing/collections.
Life Insurance Products Offered Through SBLI
SBLI offers many different types of life insurance products so that customers can essentially customize coverage to fit their specific needs, as well as to provide what is needed throughout every stage of a customer’s life. This also helps to provide coverage, no matter what a person’s budget.
Life insurance products that are offered through SBLI Life Insurance Company include the following:
Term Life Insurance Coverage
Term life insurance coverage, provides death benefit protection only, without any cash value or investment build up. Because of this “basic” approach, term life insurance can be quite affordable – primarily if the applicant is younger and in good health.
This type of coverage is oftentimes referred to as “temporary” life insurance. This is because it is purchased for specific amounts of time such as ten years, 20 years, or 30 years. With that in mind, it will be important to have a good idea of how long you will need coverage if this is the type of life insurance policy that you choose.
SBLI offers three different types of term life insurance protection. These are:
Guaranteed Level Premium Term Life Insurance
With the Guaranteed Level Premium Term Life Insurance coverage, premiums are guaranteed to remain the same throughout the entire period of the policy. This particular plan will cover the insured until he or she reaches age 85. Once the guaranteed level premium period has ended, the premium will go up each year until the insured reaches age 85.
The level premium periods that can be chosen include durations of 10 years, 15 years, 20 years, 25 years, and 30 years, and coverage amounts can range between $100,000 to $30 million for those who are under age 70. For those who are age 70 and over, coverage may go up to $10 million.
Yearly Renewable Term Life Insurance
With Yearly Renewable Term Life Insurance, the policy will renew each year. This means that the premium that is paid by the insured will be determined based upon his or her current age. This type of coverage can be extremely affordable in the beginning years, and then increase as the insured gets older. This particular policy will automatically renew every year until the insured turns age 90. There is no medical exam that is required each year to provide proof of insurability. Between the ages of 75 and 90, the amount of the insurance will decrease each year.
Up until the time that the insured reaches age 70, he or she will be allowed to convert the term insurance coverage over into a permanent life insurance policy. This can also be done without the need for a medical exam to prove insurability.
One Year Non-Renewable Term Insurance
An individual may also choose to purchase a one-year non-renewable term life insurance policy. This life insurance coverage will stay in force for only one year. Coverage amounts on this plan can range between $100,000 and $10 million, and applicants age ranges can be between 18 and 90.
Permanent Life Insurance Coverage
SBLI Life Insurance also offers permanent life insurance coverage. With this type of life insurance, there is death benefit protection, as well as a cash value component. The funds that are in the cash value portion of the policy are allowed to grow on a tax-deferred basis. This means that no tax is due on the growth unless or until the policyholder withdraws them.
Permanent policies that are offered via SBLI include:
Continuous Payment Whole Life
The Continuous Payment Whole Life insurance option covers an insured for his or her entire lifetime. This means that the death benefit is guaranteed, and the policy will remain in force – provided that the premium is paid. The cash value will also continue to build up. This particular policy has a maturity age of 121 years old.
Single Premium Payment Whole Life
The single premium payment whole life insurance policy will also remain in force for the entire lifetime of the insured. This policy, however, only required one lump sum premium in order for the policy to be considered paid up.
Because of this, the cash value will get a “jump start” and it will continue to grow at a guaranteed rate of interest over time. The cash can be borrowed or withdrawn for any reason that the policyholder wishes.
Limited Payment Whole Life Insurance
The limited payment whole life insurance policy will also cover the insured for their whole lifetime. With this policy, the premium payments are only for a limited period. In this case, the options are for ten years, 15 years, 20 years, or until the insured is age 65. This policy also has a maturity age of 65 years old.
Other Coverage Products That Are Offered
In addition to life insurance, there are other products that are offered through SBLI Life Insurance Company. These can help the company’s customers to build and / or to protect their wealth. Some of these products include the following:
Annuities
An annuity is essentially an insurance contract that is between an individual and an insurance company. These financial vehicles can offer a guaranteed income for the remainder of a person’s lifetime. This can help to alleviate the worry of outliving your retirement income – which is a major concern of many people today.
There are several different types of annuities. SBLI offers the:
Single Premium Immediate Annuity@media(min-width:0px)#div-gpt-ad-goodfinancialcents_com-banner-1-0-asloadedmax-width:250px!important;max-height:250px!important
Optimizer MVA Series Annuity
Both of them are great options for supplementing your retirement income. There are a few different advantages to these annuities that you should take note of if you’re looking for a way to invest your money.
With their SBLI Single Premium Immediate Annuity is the best option for anyone that is looking to get payouts immediately. As you can probably guess from the name, you’ll only make one single payment, and then you start getting checks from the annuity.
With the SBLI Optimizer MVA Series on the other hand, it’s not an immediate payout. You’ll make an investment, which will then start building tax-deferred interest with payouts that will start on a date that you’ll pick. With this annuity, you’ll be able to make some withdrawals without the penalties if you’re ever diagnosed with a terminal illness.@media(min-width:0px)#div-gpt-ad-goodfinancialcents_com-large-leaderboard-2-0-asloadedmax-width:250px!important;max-height:250px!important
Elder Care Insurance
Because so many people are living so much longer today, long-term care has become a big concern as well. Unfortunately, that care can be very expensive. Therefore, many people are concerned about depleting their savings – primarily because Medicare does not typically pay for most kinds of long-term care needs.
SBLI offers SBLI Legacy Protection to help manage all of the necessary aspects of long-term care and estate planning – including legal overview, financial guidance, and nursing care management expertise.
How to Get the Best Premium Quotes on Life Insurance Coverage
When you are seeking the best premium quotes on life insurance coverage – either through SBLI Life Insurance Company or any insurance carrier – it is typically best to work with an independent agency or brokerage that has access to numerous different life insurance companies. That is because you will be better able to compare and contrast many different policies, benefits, and premium quotes, and then to determine which will be the best for you and your needs. This is not only true for when seeking the best life insurance policy, but when seeking other forms of covers as well, such as the best auto insurance companies and policies.
If you are ready to move forward with the purchase of a life insurance policy, then we can help. We work with many of the top life insurers in the industry today, and we can assist you with obtaining all of the pertinent details that you will require. All you have to do is fill out the form on this page, or you can jump over here and let Policy Genius guide you.
We understand that when it comes to life insurance coverage, there are a lot of options to choose from – even if you have been turned down in the past. But it sometimes takes having an ally on your side to help you narrow down what will be the best choices for you and your specific requirements. We will help to get you where you want to go. So, contact us today – we’re here to help.
Buying a home can be challenging these days. Home prices remain high, and interest rates are up significantly compared to a few years ago. In fact, according to Freddie Mac, the average rate on 30-year loans is now creeping toward 7%.
Will rates stay high for the foreseeable future? There’s no way to tell for sure, but there are ways to get around them if they do.
Find out what today’s mortgage rates are here.
What to do if mortgage interest rates stay high
If you’re looking to purchase a house but high mortgage rates are holding you back, here are the strategies that might help.
Buy now, refinance later
One clear option is to buy a house now, at today’s rate, and then refinance your loan when interest rates inevitably drop.
According to Robert Esposito, director of sales at RelatedISG Realty, mortgage refinancing is a particularly good option for those searching for average-priced homes, as their value will only increase in price as time goes on.
“They will encounter the most competition,” Esposito says. “A property worth $500,000 today might be worth $600,000 a year from now, and then you realize you didn’t save any money.”
Check out current mortgage rates here to start exploring your options.
Make a larger down payment
Making a big down payment can help in two ways. First, “it could offer a lower interest rate,” says Sam Sharp, executive vice president of national sales at Guaranteed Rate.
It will also reduce your total loan balance and help you avoid private mortgage insurance, which means lower monthly payments.
“Making a large down payment lowers the total loan amount and interest rate,” Esposito says.” It also makes you eligible for better loan terms or even to avoid private mortgage insurance altogether.”
Consider different loan options
Exploring less-common mortgage products is another option. Adjustable-rate mortgages, for example, offer lower rates than fixed ones for the first few years of the loan. These are good if you only plan to be in the home for a few years — before your rate can increase.
“Having worked with buyers in every stage of life over the years, we find that most people overestimate the amount of time they will live in a property and thus end up with a rate higher than necessary,” says Lindsay Barton Barrett, a licensed associate real estate broker at Douglas Elliman. “If you can get an ARM, you can save substantially — even if you stay beyond the adjustment date. What happens is that you pay a higher mortgage rate for one year in five years versus paying a higher rate for all six years.”
Getting a shorter-term loan can help, too. For example, the current average rate on 30-year loans is 6.71%, according to Freddie Mac. With 15-year loans, though, the average drops to just 6.06%. This could save you quite a bit in long-term interest. Just keep in mind that you’ll have a higher payment due to the shortened pay-off timeline.
Begin comparing your loan options online today.
Stay put and improve your current home instead
If you already own a home, tapping into your equity with a home equity loan, home equity line of credit (HELOC) or cash-out refinance may be another strategy. These allow you to borrow from your home equity, which could provide funds for improving or expanding your current home as needed.
According to CoreLogic, the typical homeowner has a whopping $274,000 in home equity, so this could be a viable option for many. Still, it depends on where you live. If you’re in a condo or tight urban area, for example, there may not be space to expand.
Using your home equity also means taking on more debt, often at variable rates. These rates can be volatile, particularly as the Federal Reserve continues to fight inflation.
“Home equity lines at a variable rate track higher interest rate numbers since they are tied to factors like benchmark rates, which are currently very high,” Barrett says.
See today’s home equity rates and find out how much you may be eligible to borrow.
Buy down your rate
Buying down your rate can work as well. In this scenario, you purchase “points” — usually for 1% of the loan amount — which reduces your interest rate by a nominal amount (typically 0.125% to 0.25%).
“In recent years, we’ve found it very common for buyers to buy points, which act as prepayment interest and reduce the overall interest rate on the mortgage,” Esposito says.
Some lenders also offer temporary buydowns, where a seller or lender pays to reduce a buyer’s interest rate for a set period. After that, it goes back to the normal rate.
“This will allow for a credit from the seller that will pay the interest difference on a loan over the course of one to three years, resulting in a temporary rate reduction as high as 3% below the market rate,” Sharp says. “This is a great way to lower the monthly payment for homebuyers.”
Wait for rates to drop
Finally, you can always wait it out. As they say, “what goes up, must come down,” so mortgage rates will inevitably fall at some point. The question is when.
Fannie Mae’s forecast currently projects rates will finish out 2023 at an average 6.3%. The Mortgage Bankers Association predicts a bigger drop to 5.8%.
Still, these aren’t guarantees. And even if rates drop, it could mean more buyers in the market, which could drive up home prices.
“If rates decrease because inflation is deemed under control, then the economy overall will be more stable and lend itself to confidence,” Barrett says. “Between more purchasing power and confidence in the market, home prices would increase — meaning many will have missed the opportunity to buy real estate.”
Ready to see your mortgage options? Start by viewing today’s rates here.
Every situation is different
There’s no clear-cut strategy for dealing with today’s high mortgage interest rates. The right move for you will depend on your goals, your budget and your personal situation, so make sure to talk to a mortgage professional before deciding how to proceed.
And once you do decide to move forward, make sure to shop around for your mortgage. Freddie Mac estimates that getting at least four rate quotes can save you up to around $1,200 every year.
Life insurance provides financial protection to individuals and their loved ones in the event of unexpected circumstances. One key aspect to consider when choosing a life insurance policy is whether it generates immediate cash value. In this article, we will explore different types of life insurance policies and discuss which ones offer the benefit of immediate cash value.
Life insurance policies are critical financial planning tools designed to provide financial security for policyholders’ beneficiaries upon their demise. They work by offering a lump-sum payment, known as a death benefit, to beneficiaries after the insured person’s death.
But some life insurance policies offer an additional feature – the accumulation of cash value over time.
This is a unique feature that allows the policyholder to access a portion of the insurance money during their lifetime. This article will delve further into the types of life insurance policies that generate immediate cash value.@media(min-width:0px)#div-gpt-ad-goodfinancialcents_com-medrectangle-3-0-asloadedmax-width:300px!important;max-height:250px!important
Table of Contents
Decoding Cash Value in Life Insurance
The cash value in a life insurance policy is a savings component that grows over time. This feature is inherent in permanent life insurance policies, unlike term life insurance policies that only provide coverage for a predetermined period.
When a policyholder pays premiums towards a permanent life insurance policy, a portion of these payments contributes towards building the cash value.
This cash value grows over time and can be accessed by the policyholder during their lifetime, offering an extra layer of financial security.
Understanding Different Life Insurance Policies
The life insurance market is diverse, offering several types of policies. Some of the main types include term life insurance, whole life insurance, and universal life insurance. Each of these has its unique features, advantages, and suitability for different individuals.
Term Life Insurance
As highlighted by CNBC, term life insurance is designed to offer coverage for a specific period, typically 10, 20, or 30 years. If the policyholder passes away during this term, the insurance company pays a death benefit to the beneficiaries.
But according to financial experts like Dave Ramsey, it could be the best option for most people because it’s simple and affordable. It’s like an umbrella for a rainy day, shielding your loved ones financially if you pass away during the policy term.
However, term life insurance does not provide any cash value component. It’s often chosen for its affordability and simplicity, focusing solely on providing financial protection in the event of the policyholder’s death during the policy term.@media(min-width:0px)#div-gpt-ad-goodfinancialcents_com-banner-1-0-asloadedmax-width:580px!important;max-height:400px!important
Whole Life Insurance
Whole life insurance, as the name suggests, offers coverage for the insured person’s entire lifetime, as long as the premiums are paid. Unlike term life insurance, it combines a death benefit with a cash value component.
A portion of the premiums paid contributes to this cash value, which grows over time. Importantly, this growth is at a guaranteed rate, offering predictability and security for the policyholder. According to The Motley Fool, this type of insurance is often more expensive than term life insurance due to this cash value component and the lifetime coverage it provides.
Universal Life Insurance
Universal life insurance is another type of permanent life insurance policy that combines a death benefit with a cash value component. However, it differentiates itself with its flexibility in premium payments and death benefits. The cash value component in universal life insurance grows based on prevailing market interest rates. @media(min-width:0px)#div-gpt-ad-goodfinancialcents_com-large-leaderboard-2-0-asloadedmax-width:300px!important;max-height:250px!important
Policyholders can adjust the premium amount and death benefit within certain limits, providing them with a degree of control over the policy’s costs and benefits.
Among the various life insurance policy options, it’s the whole life insurance and universal life insurance policies that generate immediate cash value. From the moment these policies are enforced, the cash value starts growing, offering policyholders access to a part of their insurance payout during their lifetime.
Whole Life Insurance and Cash Value
With whole life insurance policies, the cash value grows at a guaranteed rate, offering a predictable savings growth mechanism. The cash value in whole life insurance is built from the premiums paid by the policyholder. This cash value can be borrowed against, offering a valuable source of funds when needed. Alternatively, the policyholder can choose to surrender the policy and receive the accumulated cash value.
Universal Life Insurance and Cash Value
Universal life insurance is a form of permanent life insurance policy that combines the death benefit of term insurance with a cash value component. This type of policy is known for its flexibility, as it allows policyholders to adjust the premium payments and death benefit within certain limits. This flexibility can be instrumental in managing life’s financial uncertainties.
The cash value in universal life insurance grows based on prevailing market interest rates, offering the potential for significant growth during periods of high interest rates. It’s important to note that while this offers an opportunity for financial gain, it can also present challenges. In periods of low-interest rates, the cash value growth can slow down, potentially affecting the policy’s overall value.
Policyholders can access the cash value in a universal life insurance policy through withdrawals or policy loans. This can offer valuable financial flexibility in times of need.
A Word of Caution on Universal Life Insurance
While universal life insurance offers flexibility and potential cash value growth, it’s not without risks. According to the New York Department of Financial Services, policyholders must be cautious about the fluctuating costs and benefits of these policies.
Interest rates can fluctuate, and when they’re low, the cash value of a universal life insurance policy may not grow as expected. This could mean that the policyholder has to pay higher premiums to keep the policy active, especially if the policy costs are being paid from accumulated cash value.
Policyholders should regularly review their universal life insurance policies. If the policy’s cash value is depleting faster than expected, or if the policy costs are increasing, it might be necessary to adjust the premiums or the death benefit to keep the policy in force.
Beware of UL Insurance
Universal life insurance policies also often have complex cost structures, with various fees and charges that can affect the cash value and the death benefit. It’s important to understand these costs and to consider them when deciding on a universal life insurance policy.
Factors Influencing Cash Value Growth
@media(min-width:0px)#div-gpt-ad-goodfinancialcents_com-leader-1-0-asloadedmax-width:336px!important;max-height:280px!importantThe growth of cash value in a life insurance policy is subject to several factors. These can vary greatly from policy to policy, and understanding them can help policyholders make an informed decision. The following are some critical factors:
Premium Payments
The amount of premium paid and the frequency of the payments directly impact the growth of the cash value. Regular and timely premium payments can accelerate the accumulation of cash value over time.
Policy Expenses
Insurance policies come with various expenses, such as administrative fees, mortality charges, etc. These charges are typically deducted from the premium payments before the remaining amount is allocated to the cash value component, thus potentially affecting its growth rate.
Interest Rates
The interest rate at which the cash value grows plays a significant role in its accumulation. A higher interest rate leads to a quicker accumulation of cash value, while a lower rate may slow it down. This is particularly relevant for universal life insurance policies where the interest rate is tied to the prevailing market rates.
Opting for a life insurance policy with immediate cash value can offer several benefits:
Financial Flexibility: The cash value in these policies can be accessed during the policyholder’s lifetime, providing financial flexibility for various needs such as emergencies, education expenses, or retirement planning.
Asset Accumulation: The cash value component of the policy acts as an asset that can grow over time. It can serve as a source of additional funds or supplement retirement income.
Borrowing Options: Policyholders can borrow against the cash value of their life insurance policy. This can be a convenient source of funds without the need for a separate loan application or credit check.
Tax Advantages: The growth of cash value in a life insurance policy is typically tax-deferred. This means that policyholders can enjoy the growth without immediate tax obligations until they withdraw or surrender the policy.
Considerations When Choosing a Policy
When selecting a life insurance policy with immediate cash value, it’s important to consider the following factors:
Financial Goals: Determine your financial goals and how the policy aligns with them. Consider whether you prioritize cash value growth, death benefit coverage, or a combination of both.
Premium Affordability: Evaluate your budget and ensure that the premium payments are affordable in the long run. Remember that missing premium payments can impact the cash value growth and policy coverage.
Long-Term Planning: Assess your long-term financial plans and how the policy fits into them. Consider factors such as retirement, education expenses, and other financial milestones.
As Life Happens points out, life insurance is valuable at any age. It’s not just for when you’re in your golden years and start worrying about leaving a financial safety net for your loved ones. With policies that offer immediate cash value, you’re getting both protection and a financial resource you can access during your lifetime.
Remember that gem of a piece of advice from Dave Ramsey? He says, “Term life insurance is bought, while whole life insurance is sold.”
This simply means that term life insurance, with its lower cost and straightforward benefits, is generally the go-to choice for most people. But the whole life insurance policies, with their additional features, are actively promoted by insurance companies.
Keep in mind that in the wild world of insurance, there’s no right or wrong choice, only what works best for you. It’s like trying to choose between a coffee and a milkshake – they both have their perks, but it ultimately depends on your taste (or in this case, your financial goals).
Are you someone who wants protection with the added benefit of cash value growth, or do you prefer a no-frills approach with just coverage? Can you consistently afford the premium payments to reap the full benefits? How does a policy fit into your long-term plan, considering things like retirement, education expenses, or other financial milestones?
Term Life Insurance
Cash Value Policy (Whole/Universal Life)
PROS
Cost
Generally cheaper
More expensive, but part of premium builds cash value
Simplicity
More straightforward as it provides only a death benefit
More complex due to the cash value component
Duration
Fixed term (usually 10, 20, or 30 years)
Provides coverage for the entire lifetime of the policyholder
Financial Flexibility
No cash value or loan option
Offers a cash value component that can be borrowed against
Investment
No investment component
Can be viewed as an investment due to cash value growth
CONS
Cost
No cash value or return of premium if the term expires before death
Higher premiums due to the cash value feature
Duration
Coverage ends if the term expires before death
Might be unnecessary if coverage is not needed for entire life
Complexity
Doesn’t require much management
Requires active management due to the cash value component
Risk
No risk as it only provides death benefit
The cash value growth might be slower than other investments
Flexibility
No option to borrow against the policy
Policyholders can borrow against the cash value, but this can reduce the death benefit
Choosing a life insurance policy with immediate cash value can provide both protection and financial flexibility. Whole life insurance and universal life insurance policies are two types that offer this benefit. Understanding the factors that influence cash value growth and considering personal financial goals are crucial when making a decision. By selecting the right policy, individuals can secure their loved ones’ future while also building a valuable asset.
Guaranteed Rate, the Chicago-based privately held mortgage lender, is buying out its joint venture partner and acquired the remaining interest in specialty originator Premia Relocation Mortgage.
Its partner in the company was Serva, a relocation services company.
Details about the Guaranteed Rate transaction were not immediately available, including price and how much of Premia did Serva own prior to the sale. Last August, it merged with another relocation provider, BGRS Worldwide, when it picked up the interest in Premia.
“This acquisition begins an exciting new chapter in our story,” said Nina Arnaiz, president of Premia, in the press release. “We look forward to bringing additional value to our existing partners and continuing to introduce our exceptional service delivery model to new opportunities.”
Premia was founded in 1987, and it was known as GMAC Relocation. In 2009, the Troy, Michigan-based lender became a joint venture of Wells Fargo as its previous owner dealt with its problems in the mortgage business and rebranded. But Wells Fargo exited all of its remaining mortgage joint ventures in 2013 and 2014 due to what it called a hostile regulatory environment.
Premia then became a joint venture of Stearns Holdings, which Guaranteed Rate acquired in 2021. These joint ventures were a specialty of Stearns, but Guaranteed Rate had its own partnerships, including with Anywhere Real Estate (formerly Realogy).
Premia will keep its name and business focus of working with relocation services companies as well as directly with businesses that relocate workers on a regular basis. It is a specialty line because relocating employees as well as their employers have several needs, both domestic and international, that must be met beyond making a home purchase and getting a loan.
“Welcoming Premia fully into our family turbochargers the abilities of both companies to deliver world-class services to help our customers access groundbreaking technology, streamlined service, and an overall best-in-class experience, whatever their needs may be,” said Victor Ciardelli, founder and CEO of Guaranteed Rate.
It appears the pesky down payment hurdle to homeownership is finally being swept aside.
This week, Fifth Third Bank out of Cincinnati, Ohio announced the availability of a mortgage with absolutely no down payment requirement.
Put simply, that means you no longer need to save up to buy a home, whether that’s actually a good thing or a bad thing.
This seems to have been borne out of necessity, not preference, especially as home prices reach new heights nationwide.
Fifth Third’s Down Payment Assistance Program
If you’re light on down payment money
You may want to check out Fifth Third’s DPA program
Which offers up to $3,600 in down payment assistance
Combined with Freddie Mac’s Home Possible Advantage mortgage to create a zero down home loan option
The so-called “Down Payment Assistance Program” from Fifth Third relies upon Freddie Mac’s Home Possible Advantage, which allows for loan-to-value ratios as high as 97%.
The remaining three percent of the home purchase price is covered by Fifth Third via down payment assistance.
Fifth Third will allow up to $3,600 in down payment assistance, meaning the property price can’t exceed $120,000.
That $3,600 doesn’t need to be paid back, and it can used toward the down payment or closing costs depending on product type.
So the loan program is clearly geared toward those with low or moderate income, not just anyone looking to forego the usual down payment requirement.
The property must also be located in the following states: MI, IN, IL, KY, TN, OH, WV, NC, GA, FL.
To qualify, the property must either be located in a Low Income Census Tract or the borrower must meet the low income limit threshold based on figures from the Federal Financial Institutions Examination Council (FFIEC) website.
Prospective home buyers can also utilize local and state housing programs to “take advantage of free money for their down payments.”
Fifth Third does note that the down payment assistance might be treated as taxable income and reported to the IRS, so keep that in mind when pursuing this type of loan.
You don’t need to be a first-time home buyer to take advantage of this program, and if it aligns with Freddie Mac’s guidelines, the minimum FICO score is just 620.
It turns out Fifth Third accepts credit scores as low as 600, which is pretty amazing when coupled with a no down payment loan program.
However, if you are a first-timer, you probably have to complete some form of homeowner education.
The property must be a single-unit, primary residence, though I believe both single-family homes and condos/townhouses qualify.
Loan options are probably restricted to fixed-rate offerings, with the 30-year fixed the most likely candidate for home buyers with limited means.
No Money in the Bank Might Not Be a Problem
Aside from not needing a down payment
You might be able to qualify without reverses as well
So having no money in the bank isn’t necessarily a roadblock here
You can also enjoy reduced mortgage insurance premiums
The Freddie Mac program doesn’t require asset reserves so qualifying homeowners may be able to purchase a home with absolutely no money in the bank.
Additionally, it comes with reduced mortgage insurance premiums, making monthly payments more affordable to those with limited income.
Fifth Third is the latest bank to offer a low or no-down payment mortgage option.
A couple weeks ago, Guaranteed Rate launched a 1% down mortgage that relies upon a forgivable grant as high as 7% of the purchase price.
Quicken Loans, the largest nonbank mortgage lender in the nation, also has a 1% down payment mortgage that isn’t widely publicized.
Interestingly, all of these new mortgages rely on conforming loan programs and noticeably snub government lending such as FHA, which fell out of favor recently after a number of lawsuits.
While it’s great to have another flexible mortgage option, keep in mind that it may be more difficult to get your offer accepted if you are putting little to nothing down.
Home sellers aren’t particularly keen on seemingly high-risk buyers because chances of lender fallout are higher.
Read more: 3 ways a low down payment raises your monthly mortgage payment.
While most folks are anxiously awaiting the Fed’s announcement of a potential rate hike, homeowners are continuing to enjoy record low mortgage rates that can be locked in for decades. And that doesn’t appear to be changing anytime soon.
Mortgage rates actually hit rock bottom back in late 2012 and early 2013, depending on the loan product, but on the whole 2016 will be a better year for mortgage rates.
Lowest Average Mortgage Rate in Decades
A new monthly outlook from mortgage financier Freddie Mac revealed that the 30-year fixed mortgage is expected to average 3.6% this year, the lowest annual average in over 40 years.
If you look at the chart above, you’ll notice that rates aren’t quite as low as they were late in 2012, but they’ve been consistently lower all year. That means more borrowers have been able to take advantage of low rates while refinancing existing mortgages or purchasing new homes.
And it couldn’t have come at a better time – mortgage origination volume is slated to hit $2 trillion this year. Perhaps that’s why it will hit $2 trillion…the last time it did was in 2012 after all so it’s all lining up nicely again.
Next year is shaping up to be pretty solid too, with rates on the 30-year fixed only projected to rise to 3.7%. That’s basically unnoticeable for most borrowers.
Offsetting Rising Home Prices
Freddie says the drop in mortgage rates from around 4% at the end of 2015 to roughly 3.5% during the third quarter of this year has “more than offset the rise” in home prices in the majority of markets nationwide.
They claim this will help “preserve homebuyer affordability,” though there’s still that pesky down payment to contend with.
Fortunately, a slew of lenders have released offerings requiring very little or even nothing down. There’s Quicken’s 1% down mortgage, the same at Guaranteed Rate, and a no down payment option at Fifth Third.
And of course Fannie and Freddie’s 97% LTV offering at banks nationwide. That should keep homeownership in reach for most folks, even if they don’t have a lot set aside.
If it seems too late to get in, don’t fret because there’s apparently more home price appreciation on the horizon.
Freddie is revising up its forecast to 5.6% and 4.7% in 2016 and 2017, respectively, from last month’s forecast of 5.3% and 4%.
So there’s still a lot of home price growth expected despite the massive gains already realized. And if you couple a low fixed rate with still decent growth you can’t complain much.
Might Also Be a Good Time to Cash Out
Seeing that rates are so low and home prices are on the rise, it might be a good time to inquire about that cash out refinance if you want some cheap money.
As noted, you can lock in a low rate and get some of that hard-earned equity out of your home to use for whatever it is you might need.
If and when the Fed does start raising rates and mortgage rates eventually follow, you’ll still have your cheap money locked in at that low price for a long time.
Freddie added that cash-out activity has been on the rise, with an estimated $13.3 billion converted during the second quarter, up from $11.4 billion a quarter earlier.
Still, it pales in comparison to the $84 billion cashed out during the second quarter of 2006…
Chicago-based Guaranteed Rate, a top 10 U.S. mortgage lender, acquired Sirva’s shares at Premia Relocation Mortgage and now has full ownership of the business, the companies announced on Friday. The financial terms of the transaction were not disclosed.
Premia, which provides a relocation mortgage service for employees moving across the country or to other countries, has a digital platform called DigitalMove. According to the mortgage data company Modex, Michigan-based Premia has three branches, 21 active loan officers, and originated about $670 million in mortgages in the last 12 months.
“With this change in place, we can provide our customers with an even wider range of products and specialized services,” Victor Ciardelli, Guaranteed Rate’s founder and CEO, said in a statement. “The increased investment in technology and additional resources GRI brings will enhance and strengthen an already established foundation.”
Premia‘s production represents a small share of G-Rate’s origination volume, which reached $7 billion in the first three months of 2023. It fell 58.8% compared to the same period of last year but was enough to give Guaranteed Rate the sixth position among the largest mortgage lenders in the country, according to Inside Mortgage Finance (IMF).
Guaranteed Rate inherited Premia, a joint venture with Sirva, when it acquired multi-channel lender Stearns Holdings for an undisclosed sum in January 2021, bringing in a $20 billion lender that gave the company direct access to the wholesale channel, a network of talented underwriters and compliance specialists and several highly profitable joint ventures.
One year after the acquisition, G-Rate closed Stearns wholesale channel and laid off hundreds of employees. In a letter to brokers about shutting down the Stearns wholesale channel, Ciardelli wrote that the company had decided to focus on leveraging its “industry-leading purchase platform augmented by the best loan officers in the business.”
In May 2023, G-Rate adopted the technology company Gateless‘s Smart Underwrite solution, which aims to significantly reduce the time and effort involved in the origination process, potentially leading to faster, if not instant, borrower approvals.
Before that, the company expanded its program to approve loans within 24 hours nationwide. Dubbed the “Same Day Mortgage,” it aimed at giving a competitive edge to first-time buyers who are competing against the all-cash buyers who make up 28% of home purchases, the lender said.
When you’re shopping for your next home, choosing the right mortgage lender is one of the most important decisions you’ll make (aside from choosing the right house, that is). The right mortgage lender can make the process more seamless. Not only that, but choosing the right lender can save you thousands on interest and other miscellaneous costs.
With so many lenders on the market, it can be challenging to choose just one. We’ll help narrow down your search by sharing the top 10 mortgage lenders in the industry.
Best Mortgage Lenders of 2023
There are many mortgage lenders to choose from, and they include online lenders, traditional banks, and local financial institutions. Some factors to consider when choosing the best lender include the loan types available, mortgage interest rates, fees and more.
Here are the top 10 mortgage lenders in 2023:
PNC Bank
Rocket Mortgage
Guaranteed Rate
Bank of America
Veterans United Home Loans
Navy Federal Credit Union
Chase
Ally
Better Mortgage
Northpointe Bank
1. PNC Bank
PNC Bank is available in all 50 states and offers a wide variety of mortgage options, including conventional loans, jumbo loans, FHA loans, VA loans and USDA loans. PNC also offers some specialty loans, including the PNC Community Loan and a Medical Professionals loan.
Pros:
Many loan types, including specialty loan programs
Online and in-person customer service
Digital preapproval process
Cons:
No renovation loans
In-person service isn’t available in all states
2. Rocket Mortgage
Rocket Mortgage received top marks in customer satisfaction in the J.D. Power 2022 U.S. Mortgage Origination Satisfaction Study. It offers a simple online mortgage process with a fully digital application and access to online home loan experts.
Pros:
Streamlined application process
Access to online loan experts
$10,000 off closing costs when you use Rocket Homes to buy
Cons:
No USDA loans or home equity lines of credit
No brick-and-mortar locations
3. Guaranteed Rate
Guaranteed Rate combines the online-only mortgage experience with the ability to meet with a mortgage officer in person at more than 400 branches nationwide. In addition to its standard loan options, Guaranteed Rate also offers HELOCs, renovation loans, interest-only loans and other specialty loan programs.
Pros:
Advanced online tools and application process
Online and in-person service
Transparent about its interest rates on its website
Cons:
No home equity loans
Higher credit score requirements
In-person service isn’t available in all states
4. Bank of America
Bank of America combines the benefits of a major national bank with the customer service of a smaller establishment. It offers a wide variety of mortgage types and helps connect buyers with down payment assistance, affordable housing assistance and more. And because it’s a national bank, you can find thousands of branches in the U.S.
Pros:
Offers various buyer assistance programs
Online and in-person service
Discounts for existing customers
Cons:
No renovation loans
No USDA loans or home equity loans
Lacking alternative mortgage programs
5. Veterans United Home Loans
Veterans United is one of the nation’s top VA loan lenders. The lender offers an easy online application process and the ability to track your loan progress through its app. It’s also one of the most highly rated companies for mortgage origination, according to J.D. Power. And while it specializes in VA loans, Veterans United also offers other loan types.
Pros:
Top VA loan lender
Free credit counseling to veteran and military families
Competitive interest rates
Cons:
No HELOCs or home equity loans
Limited transparency about non-VA loan rates
No physical branches in most states
6. Navy Federal Credit Union
Navy Federal Credit Union is only available to military households, meaning not just anyone can get a home loan through them. However, if you qualify, you’ll have access to competitive interest rates for VA loans and other mortgage types. Navy Federal also has a highly rated customer satisfaction rating from J.D. Power.
Pros:
Competitive interest rates
Top VA loan lender
Offers an interest rate match with competing lenders
Cons:
Only available to military families
No FHA loans
Limited number of branches
7. Chase
Chase is a large national bank and one of the country’s top mortgage lenders. It offers a wide variety of loan types, as well as down payment and closing cost assistance. And because the lender is so widely available, you can get in-person service no matter where you live. And as an added bonus, Chase has highly rated customer satisfaction for mortgage origination, according to J.D. Power.
Pros:
Online and in-person service
Many loan options, including low down payment options
Chase Homebuyer Grants for up to $5,000
$5,000 Chase Closing Guarantee for late closings
Cons:
Can’t complete the application process online
No USDA loans or HELOCs
8. Ally
Ally stands out from other mortgage lenders because it doesn’t charge any lender fees — no application fee, no origination fee, no underwriting fee, etc. It also offers a streamlined online application you can complete in as little as 15 minutes with the help of home loan experts.
Pros:
No lender fees
Get preapproved with no credit score impact
Preapproval in three minutes and closing 10 days faster than industry average
Cons:
No FHA, VA or USDA loans
No home equity loans or HELOCs
No physical branches
9. Better Mortgage
Better Mortgage prides itself on the one-day mortgage where you can complete your application, lock in your rate, and get a loan commitment letter within 24 hours. Better offers a fully online mortgage process and even offers added benefits like a network of real estate agents, attorney match, settlement services and more.
Pros:
Streamlined online mortgage process
No lender fees
See personalized rates before applying
Cons:
No physical branches
No USDA loans or home equity loans
10. Northpointe Bank
Northpointe Bank offers an impressive lineup of loan types and special programs for a regional bank. Unique options include physical loans, rural development loans, no-money-down loans, delayed financing and more. You don’t have to know what type of loan you want when you start your application — your loan advisor will help find the right loan for you based on your goals and finances.
Pros:
Many home loans and programs
Offers down payment assistance in some states
Loan options start at 0% down
Cons:
Can’t complete the application process online
Branches not available in all states
Lack of lender fee transparency
Which Lender Is Best for You?
With so many lenders to choose from, it would be easiest for someone to tell you which is best. But there’s no one mortgage lender that’s right for all borrowers. There are some that stand out from the rest, but each lender has some unique advantages and features. As a result, the best lender for you depends on the type of loan you need, your budget, and what characteristics you most want in a lender.
When you’re shopping for a mortgage, you can find the best lender for you by shopping around. Speak with loan officers from several different lenders and get interest rate quotes. You’ll get an idea of which lenders can offer you the best deal and which you’ll feel most comfortable working with while making this major purchase.
Information is accurate as of June 26, 2023.
Editorial Note: This content is not provided by any entity covered in this article. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by any entity named in this article.
The information related to Chase Home Lending products was collected by GOBankingRates and has not been reviewed or provided by the issuer of these products. Product details may vary. Please see the issuer’s website for current information. GOBankingRates does not receive commission for these products.
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This article originally appeared on GOBankingRates.com: 10 Best Mortgage Lenders of 2023