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Today, Zillow announced its “1% Down Payment” loan program, making them the latest lender to join the near-zero down fray.

The move comes as mortgage rates hit 20-year highs, with the 30-year fixed now being quoted in the 7% range for many borrowers.

Of course, this program simply addresses the down payment burden, but any little bit helps at the moment.

Initially, the new offering will be available to applicants purchasing a home in the state of Arizona only.

But the company does have plans to expand to other states if the pilot goes well.

How Zillow’s 1% Down Payment Loan Program Works

Zillow notes that most of the country is in the midst of an affordability crisis, thanks to a combination of high asking prices and equally high mortgage rates.

At the same time, renters are grappling with asking rents that are 3.6% higher than they were a year ago, making it difficult to set aside funds for a down payment.

This means 64% of first-time home buyers are putting down less than 20% when purchasing a property, and 25% are only able to muster 5% or less.

Many others don’t even have the necessary funds to bring in a minimum contribution, which could delay their home purchase.

Looking at a hypothetical $275,000 purchase in Phoenix, Arizona, it would take only 11 months for someone saving 5% of their income (earning 80% of area median income) to save 1% down payment.

Meanwhile, someone who needed a 3% down payment would see that timeline rise to 31 months, which obviously could delay starting a family, or simply the goal of homeownership.

That’s where this new loan program comes in.

Similar to other 1% down mortgages, the lender chips in 2% of the down payment to effectively make it a 3% down loan.

This is important because doing so will allow borrowers to meet the minimum 3% down payment required for conforming loans, such as those backed by Fannie Mae and Freddie Mac.

It also gives the home buyer instant equity, along with a slightly smaller loan amount. Taken together, it could make homeownership attainable for more borrowers.

Who Qualifies for Zillow’s 1% Down Mortgage?

While Zillow has so far been a little light on details, it appears to be geared toward those with limited incomes in the state of Arizona.

As noted, it could expand to other states, but at the moment they’re trialing it in the Copper State.

My assumption is there are also income limits, as the 2% down payment appears to be a grant from the company.

Similar to Rocket Mortgage ONE+, you might only qualify if making 80% AMI (or less), which you can look up here.

Additionally, you will likely need to meet other conforming loan requirements, such as a minimum 620 FICO score.

And the program is probably reserved solely for those purchasing a primary home, including single-family residences and condos. No second homes or investment properties.

It’s unclear if you need to be a first-time home buyer as well, which means no ownership interest in the past three years.

In order to meet the 97% loan-to-value ratio (LTV) maximum, Zillow Home Loans will contribute 2% on top of your 1% down payment at closing.

There will definitely be a max dollar amount contribution here as well, as there is with other programs. That too hasn’t been divulged of yet.

Is This a Good Deal?

While we don’t have all the details, it appears to be similar to other 1% down mortgage options currently available with other lenders.

And some of the existing alternatives might actually offer a little bit more, such as reduced closing costs, no private mortgage insurance, and more.

So to determine if it’s better, you might start by looking at the mortgage rates and closing costs, collectively known as the mortgage APR.

In other words, don’t get stuck on the down payment. Look at the big picture. As noted, there are other lenders that provide grants toward the down payment.

In July, Guaranteed Rate launched OneDown, which offers a 2% grant (up to $2,000) and $1,000 toward closing costs.

A month earlier, Guild Mortgage announced 1% Down Payment Advantage, which comes with a temporary buydown the first year. Their non-repayable grant is up to $5,000.

We’ve also got a similar offering via the mortgage broker channel from wholesale lender United Wholesale Mortgage (UWM). It is tougher on the maximum income (up to 50% AMI), but offers up to $4,000.

Lastly, there’s the U.S. Bank Access Home Loan, which comes with up to $12,500 in down payment assistance if you buy in a minority census tract.

To sum things up, there are lots of homebuyer assistance programs out there, especially now that home prices and mortgage rates are so high.

Be sure to take the time to comparison shop as you would anything else. You might be surprised what you come across.

As you can see from the handful of examples above, the perks can range tremendously.

Source: thetruthaboutmortgage.com

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Embrace Home Loans Fast Facts

  • Founded in 1983 by Dennis Hardiman
  • Previously known as Advanced Financial Services Inc. before name change in 2009
  • Located in Middletown, Rhode Island
  • Fannie/Freddie, FHA, VA, and USDA-approved direct mortgage lender
  • Licensed in 49 states and the District of Columbia (not available in Hawaii)
  • Loan servicing portfolio exceeds $6 billion

I always like to read up on the history of specific mortgage lenders to see how they got their start.

And the Embrace Home Loans story is an interesting one, having started all the way back in 1983, which is a lifetime in the mortgage industry.

Originally known as Advanced Financial Services Inc., direct-to-consumer mortgage lender Embrace Home Loans began after founder Dennis Hardiman watched mortgage interest rates “fall a whopping 5 points.”

Back then, mortgage rates were nothing like they are today. In 1982, they were hovering around 17% for a 30-year fixed, and a year later had fallen to around 12%.

While neither of those rates sounds very appealing, Hardiman realized that no one refinanced their mortgages in those days.

Instead, homeowners took out a mortgage when they purchased a home, and either kept it until maturity or paid it off when they moved.

Fast forward to 2020 and most borrowers don’t keep their mortgage for more than a few years.

Oh, and the lenders that originate them don’t keep them for more than a month before they’re bundled into mortgage-backed securities on Wall Street.

So that’s how Embrace got its start – today they offer mortgage refinances and home purchase loans nearly nationwide, with roughly 700 employees and about 60 physical branches.

I tried to determine how large they are by digging into HMDA data, which put 2018 loan volume at roughly $2.3 billion.

But they also have a correspondent lending channel that launched in 2013, so it’s hard to say how much volume they do.

Anyway, let’s learn more about them.

Update: Embrace Home Loans recently partnered with Ameriprise Financial to provide its wealth management advisors and clients with mortgage financing solutions.

Applying for a Mortgage with Embrace Home Loans

  • You can apply for a mortgage directly on their website
  • Or use their loan officer directory to work with someone specific
  • They also offer the ability to get pre-qualifed via text message
  • Once approved you can track loan progress via the Embrace Home Loans Mobile App

One plus to Embrace Home Loans is the ability to apply for a mortgage directly on their website without having to speak to anyone.

However, you’re also able to call them directly or use their loan officer directory if you’ve been referred by someone specific. Or simply want to look up loan officers in your area.

You can also request a mortgage rate quote by filling out a shorter form on their website, in which case a loan officer will reach out to you.

One unique offering they have is the ability to get pre-qualified via text message.

Once you’re approved, you can use the customer portal to upload documents, e-sign disclosures, and connect your bank statements via Finicity.

You can also download the Embrace Home Loans Mobile App for free and track your loan progress without having to call or email your loan officer.

It sends real-time updates and helpful reminders, including upcoming events like your home appraisal and closing date.

So they do offer some digital mortgage attributes, similar to Rocket Mortgage.

What Types of Mortgages Does Embrace Home Loans Offer?

  • Home purchase, refinance, renovation
  • Conventional loans (Fannie/Freddie)
  • Government loans (FHA, USDA, VA)
  • Unconventional loans (self-employed and poor credit)
  • Jumbo loans
  • Higher LTV refinance
  • No down payment mortgages
  • Fixed-rate mortgages (30-year and 15-year fixed)
  • Adjustable-rate mortgages (5/1 and 7/1 ARMs)

Embrace offers just about every type of mortgage you can think of, including home purchase loans, refinance loans (cash-out and rate and term), and renovation loans.

You can get a conforming mortgage backed by Fannie Mae or Freddie Mac, along with a jumbo loan up to $3 million.

They offer all the main government home loan options, including FHA loans, USDA loans, and VA loans.

Additionally, you can get a renovation loan via the FHA 203k program.

Their so-called “unconventional loans,” which are known as “beyond by Embrace,” include some unique programs other lenders may not offer.

This includes mortgages for the self-employed (12-month bank statement program), jumbo loans with high LTVs, poor credit down to 580 FICOs, and financing on non-warrantable condos with a higher concentration of commercial units.

You can also get a no down payment mortgage (up to 101% CLTV) that features an interest-only piggyback second mortgage with no need for mortgage insurance.

And they offer a “higher LTV refinance,” which is the permanent replacement of the Home Affordable Refinance Program (HARP) offered by Fannie Mae and Freddie Mac.

Lastly, you can get a mortgage just one day after a settled Chapter 7 or 13 bankruptcy, assuming your credit score is at least 580.

They’ve basically got anything a borrower could wish for, so you shouldn’t be limited in any way with regard to loan program.

Embrace Approved to Move Pre-Approval

The company also offers a fully underwritten approval known as “Approved to Move” that can come in handy in a competitive housing market.

Instead of a mere pre-qualification, or run-of-the-mill pre-approval, your loan file is actually processed by a loan underwriter upfront.

Aside from providing you with the assurance that you’re approved for a mortgage, it gives the home seller peace of mind that you’re a serious and qualified buyer.

It’s good for a full 90 days and Embrace says “it’s virtually as good as a cash offer.”

Embrace Home Loans Mortgage Rates

While they don’t advertise their mortgage rates, you can find rate assumptions at the bottom of most pages on their website.

Their rates seem competitive, but they make a lot of strong assumptions, including a loan-to-value ratio of 70% or less. If your LTV is higher, expect a higher interest rate.

Additionally, they charge two discount points in their mortgage rate examples, meaning 2% of the loan amount comes via closing costs.

So be sure to consider the closing costs and take a look at the mortgage APR, not just the rate, when comparing their offer to other lenders.

Embrace Home Loans Reviews

The company seems to be very highly regarded, with solid reviews across a number of different platforms.

On SocialSurvey, they have a 4.9 rating out of 5 based on roughly 25,000 customer reviews.
Additionally, they have been named #1 large mortgage company in terms of customer satisfaction on SocialSurvey.

On Zillow, they have a 4.97 star rating out of 5 based on 2,500 customer reviews. Most customers seem to indicate that rate and fees are lowered than expected.

They are an accredited company with the Better Business Bureau (since 2009) with an A+ rating.

Embrace Home Loans Pros and Cons

The Good

  • Tons of loan programs (including no down payment and low credit score options)
  • Excellent customer reviews
  • ‘Approved to Move’ fully underwritten pre-approval
  • Ability to get pre-qualified via text message
  • Can apply directly on website
  • Free mortgage calculators on site
  • Free mobile app
  • Services its customers’ loans via a sub-servicer

The Potential Bad

  • Not licensed in Hawaii
  • Do not advertise their mortgage rates
  • Don’t disclose lender fees upfront on their website
  • Does not offer home equity products (such as HELOCs)

Source: thetruthaboutmortgage.com

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Mortgage rates continue to rise in the United States. On June 9, the average annual percentage rate on 30-year fixed mortgages was 7.07%. Meanwhile, the average 15-year fixed mortgage APR is 6.48%, according to the latest survey from Bankrate, one of the nation’s largest mortgage lenders.

READ ALSO: What are the best interest rates for a home and which banks offer them?

Will mortgage rates continue to rise in the US in 2023?

In recent months, mortgage rates have risen to their highest level in 20 years, causing a slowdown in buying activity. Where is the housing market headed in 2023? Bankrate questioned several real estate experts to come up with a five-year forecast for the real estate market.

According to Lawrence Yun, chief economist at the National Association of Realtors, mortgage interest rates could continue to rise. According to Yun’s forecasts, 7% could be the level of mortgage rates for the rest of this year and most of 2024. Within two years, he forecasts the rate should return to 5.5 or 6%.

Because rates are high, Yun expects higher interest on adjustable-rate mortgages over the next year. After that, however, he predicts that 90% of Americans will return to the traditional 30-year fixed-rate mortgage.

Danushka Nanayakkara-Skillington, assistant vice president of forecasting and analysis at the National Association of Home Builders predicts that rates will fall to around 6% by mid-2024.

Home Price Predictions

According to NAR, the median sales price for existing homes in the country in April of this year was $388,800. For newly built homes, the NAHB data shows that the April median sales price across the country was slightly above $420,800.

Looking ahead, Yun doesn’t see any major changes in price tags nationwide next year and predicts fluctuations of about 5 percent one way or the other. However, in five years, he expects prices to have appreciated a total of 15-25%.

READ ALSO: These are the most overpriced housing markets in the US in 2023

Will the housing market crash?

According to Yun, although there are some characteristics similar to a housing bubble, the residential real estate market is not expected to burst. Several experts point out that there is no danger of an imminent housing market crash, as inventory is too scarce. Also, the standards for obtaining a loan today are much stricter compared to the Great Recession.

Source: en.as.com

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One mortgage lender making a big splash of late is NewRez, short for New Residential Investment Corp.

Thanks to their 2019 acquisition of Shellpoint Partners LLC, which was the parent company of New Penn Financial, they now have a robust loan origination platform to flank their expansive loan servicing business.

They are a publicly-traded company worth billions of dollars that has quickly become a top-20 mortgage lender nationwide.

The company also has joint ventures in place, including one with Shelter Mortgage known as Homeowners First Mortgage.

It provides mortgage financing to home buyers represented by real estate brokerage First Team Real Estate in Southern California.

NewRez and Shelter also have a partnership in place with a San Francisco-based company called Landed, collectively known as Landed Home Loans, which offers down payment assistance to teachers and other school employees.

In July 2020, NewRez created its 16th joint venture with Berkshire Hathaway HomeServices Verani Realty, which will be known as “Home Sense Lending LLC.”

It will serve home buyers throughout New England via 500 licensed real estate agents that work at the brokerage.

In September 2020, they launched “Sanctuary Home Mortgage,” a collaboration between NewRez and Shelter Mortgage Company, and Atlanta Fine Homes Sotheby’s International Realty.

Then in December 2020 created “Mission Mortgage,” which will be headquartered in Washington, D.C. and service clients there and in Maryland and Virginia.

The pair’s newest joint venture is called “Coast One Mortgage,” a partnership with the Schmidt Family of Companies, a family-owned real estate brokerage.

NewRez Fast Facts

  • Founded in 2008, originally known as New Penn Financial
  • A direct-to-consumer mortgage lender based in Fort Washington, PA
  • Also runs a correspondent lending and wholesale division
  • Licensed to lend in 49 states and DC (pending approval in NY state)
  • Funded $61 billion in 2020 (a top-20 lender nationwide)
  • 2,600+ employees and 616,000+ customers served

How to Get a Mortgage with NewRez

They say they’ve got cutting-edge technology and proprietary systems, including the NewRez app and “ezhub,” which is their digital mortgage offering.

It allows you to document income and assets electronically and take advantage of various automated underwriting tools.

Their smartphone app lets you to apply for a mortgage and make monthly mortgage payments once your loan is closed, assuming they service it too.

It’s also possible to get the loan process started online by filling out a short form on their website, at which point a loan advisor will make contact to guide you along.

You can also simply call them up directly or use their loan advisor directory to get in touch with someone specific if you’ve been referred.

Either way, you’ve got options when it comes to applying for a loan with NewRez.

Loan Types Offered by NewRez Mortgage

  • Home purchase and refinance loans (rate/term and cash out)
  • Home renovation loans and construction loans
  • Conventional, FHA, VA, USDA loans
  • Specialized products for self-employed borrowers
  • Jumbo loans that exceed the conforming loan limit

NewRez offers home purchase loans, refinance loans, and construction loans on all property types, including primary homes, vacation homes, and investment properties.

The company’s 2019 volume consisted of roughly 85% mortgage refinance and 15% home purchase, with 37% of their loans involving cash out to the borrower.

This is probably due to their massive loan servicing portfolio that allows them to get in contact with their many existing homeowners.

They offer both conventional loans backed by Fannie Mae and Freddie Mac, along with government home loans including FHA loans, USDA loans, and VA loans.

You can also get a jumbo home loan from NewRez if the loan amount exceeds the conforming loan limit for your county.

Nearly 60% of their 2019 retail loan volume was conventional, with 25% FHA loans, 15% VA loans, and the remainder jumbo and USDA.

Those looking for a construction loan are in luck because they offer both FHA and VA construction loans, such as FHA 203k, and conventional construction loans like Fannie Mae HomeStyle.

You can get a fixed-rate mortgage, such as a 30-year fixed or 15-year fixed, and possibly other terms in between.

They also offer a variety of adjustable-rate mortgage options, including 5/1, 7/1 and 10/1 ARMs for those looking for a cheaper monthly payment.

NewRez Mortgage Rates

NewRez does not openly advertise its mortgage rates, which is a shame because it’s difficult to know how they stack up relative to other lenders.

You’ll only know their pricing if you fill out a mortgage quote request and/or speak with a loan specialist. Until then, you’re basically in the dark pricing-wise.

That doesn’t mean they aren’t competitive, it just remains an unknown at the moment until more data is collected on that front.

As such, be sure to take the time to shop around – do this regardless of whether they advertise their mortgage rates. You never know if there’s a better rate out there unless you put in the time.

The same goes for lender fees – it’s unclear how much or what they charge, so compare interest rate and fees (mortgage APR) when shopping your loan.

NewRez Mortgage Reviews

Unfortunately, NewRez mortgage reviews are scant at the moment, perhaps because they only recently launched after acquiring New Penn Financial.

The only information I could find was on Yelp, where they had 1.5 stars out of 5, which is obviously pretty dire.

However, if you go to Zillow and search their lender directory by inputting “NewRez” into the bank name field, you’ll see lots of individual reviews for NewRez loan officers.

From there, you can sift through the many names to find the loan officer with the best reviews, then contact that person directly if you want to work with NewRez.

This might be the best way to go for any large mortgage lender because ultimately customer experiences will vary widely when dealing with thousands of different employees.

I took a look at the NewRez loan officer reviews and found that several had perfect 5 out of 5-star ratings or very close to it. Many also indicated that mortgage rates and fees/closing costs were lower than expected.

Let me add that the company has been accredited with the Better Business Bureau since 2009, and has an A+ rating at the moment.

Their customer reviews on the BBB website aren’t favorable, with a star rating just over 1 out of 5. Of course, the BBB customer review rating system is based on complaints, so the rating is typically never very good.

Pros and Cons of NewRez Mortgage

The Good

  • Digital mortgage process
  • Expansive suite of loan programs to choose from
  • They have a free smartphone app
  • Lots of mortgage calculators on site
  • Loans are serviced by NewRez instead of being sold off

What to Watch Out For

  • Do not advertise mortgage rates
  • No information on lender fees or closing costs
  • Very limited review information (unclear how well-liked they are)
  • Not licensed in the state of New York

Source: thetruthaboutmortgage.com

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Today we’ll learn more about “Homespire Mortgage,” which has made the Inc. 5000’s List of America’s Fastest-Growing Private Companies for the past four years in a row.

Aside from being a rapidly expanding mortgage company, they’re also consistently recognized as a top mortgage employer. Happy employees should increase your odds of being a happy borrower.

They pride themselves on breaking the mold, fusing innovative mortgage technology with the power of the human spirit to create a winning mortgage experience.

The company was founded in 2006 by Michael Rappaport (no, not the actor), who also currently serves as their president.

Let’s discover more about a lender borrowers trust, and real estate agents recommend.

Homespire Mortgage Fast Facts

  • Direct-to-consumer retail mortgage lender
  • Offers home purchase and mortgage refinance loans
  • Also an approved Fannie Mae and Freddie Mac seller and loan servicer.
  • Founded in 2006, based out of Gaithersburg, Maryland
  • Currently operates in 41 states and the District of Columbia
  • Funded roughly $2.4 billion in home loans during 2020
  • About half of total lending volume was in the state of Maryland

Homespire Mortgage is a direct-to-consumer retail mortgage lender that operates 32 branches in 17 states.

They are currently licensed to do business in 41 states nationwide, with Alaska, Hawaii, Missouri, Nebraska, Nevada, New York, South Dakota, Utah, and Wyoming the exceptions.

In 2020, roughly 70% of their loan origination volume consisted of purchase loans, with the remainder refinance loans. In other words, real estate agents trust them to get the job done.

About half of their production was conventional, while roughly a third was FHA loans, and about 12% was VA loans. The rest was jumbo or USDA.

They also just launched a special initiative for healthcare workers that waives lender fees for those battling COVID-19.

How to Apply with Homespire Mortgage

  • You can request a quick rate quote via their online form
  • Or apply for a mortgage directly from their website in as little as 15 minutes via ReadyApp
  • Digital mortgage allows you to import taxes and bank statements electronically
  • They also have branches in select states across the nation for in-person consultation

One big plus to Homespire Mortgage is the fact that you can apply for a home loan right on their website, with no human interaction.

That seems to be a thing these days, so if you’re the type who likes to go it alone, you’re in luck.

They’ve got a digital mortgage application powered by Ellie Mae known as “Homespire Mortgage ReadyApp” that lets you enter in all your vital information and link financial accounts for a fast and accurate experience.

You can sync your tax returns and bank statements and go from application to submission in as little as 15 minutes.

Once submitted, a loan consultant will get you pre-approved quick, handy if you plan on doing some house hunting.

While technology is great, they haven’t forgotten the human element either – you’re more than welcome to choose a loan officer to work with, or visit a branch if one is located near you.

At the moment, they’ve got branches in 11 states, and over time that number should grow as they work on their nationwide expansion.

When applying via the website, you can select a loan officer or branch location if you’ve been referred to someone specific, or if you know the individual you plan to work with.

You can also simply request a rate quote via the website and a loan consultant will call you to discuss your loan scenario.

Homespire Mortgage Loan Options

  • Offer home purchase loans with zero down
  • Down payment assistance available
  • Refinance loans including streamline and cash-out
  • Renovation loans via Fannie Mae, FHA, or the VA
  • Jumbo loans
  • Fixed-rate mortgages and ARMs

When it comes to loan options, Homespire Mortgage has plenty to choose from for both home purchases and mortgage refinances.

You can take out a conforming loan backed by Fannie Mae or Freddie Mac, or a government home loan backed by the FHA, USDA, or VA.

Additionally, they’ve got renovation loans (including HomeStyle Renovation, FHA 203k, and VA Renovation) for those who are purchasing or refinancing a fixer-upper.

Those in need of some down payment assistance can take advantage of the fact that Homespire Mortgage participates with federal, state, county, and city governments nationwide.

For those in expensive regions of the country, they also offer jumbo mortgages with loan amounts as high as $2.5 million and LTVs up to 95%.

In terms of specific loan programs, you can get a fixed-rate mortgage, such as a 30-year or 15-year, or an adjustable-rate mortgage, such as a 5/1 ARM or 7/1 ARM.

Like most other lenders these days, the lion’s share of mortgages originated recently have been 30-year fixed home loans.

So they’ve got a loan for just about everyone, whether you’re a first-time home buyer or looking to tap equity via a cash out refinance.

Homeownership for Healthcare Heroes Program

The company also just launched a special program that recognizes frontline healthcare workers who are currently battling COVID-19 nationwide.

Homespire’s Homeownership for Healthcare Heroes Program waives all lender fees for qualified borrowers on home purchase loans.

They say the average estimated savings are $1,520, which gives us a clue about what they normally charge borrowers.

Eligible participants include doctors, nurses, administrative professionals, along with individuals who work in doctor’s offices, nursing homes, and at home healthcare professionals.

The minimum loan amount is $100,000, and applications must be received between June 29th – December 31st, 2020.

Homespire Mortgage Rates

One negative to Homespire Mortgage is the lack of mortgage rate disclosure.

Sure, you can request a rate quote, but it’s nice to see mortgage rates upfront too.

Without knowing their pricing, or lender fees while we’re at it, it’s impossible to know how competitive they are until you get a quote.

As such, you should take the time to compare their quote to other mortgage companies to ensure you get a good deal.

While customer service and convenience are great, the mortgage could be with you for the next three decades. You’ll want to know you didn’t overpay.

Remember to factor in the lender fees, not just the rate, by considering the mortgage APR offered by Homespire Mortgage versus other lenders to accurately compare.

Homespire Mortgage Reviews

In terms of customer satisfaction, they’ve got a 4.98-star rating out of 5 on Zillow based on nearly 1,000 reviews.

After scanning through many of them, it appears most borrowers said both the interest rate and closing costs were lower than expected.

You can also view individual loan officer reviews on Zillow if you enter the person’s name in a web search. Handy if you want to know how someone specific performs as they’re a fairly large company.

On SocialSurvey, they have a 4.91-star rating out of 5 based on nearly 7,000 customer reviews. Again, you can filter those reviews by loan officer to learn more about the individual you plan to work with. Or to decide who to work with!

Homespire Mortgage is an accredited business with the BBB, and has been since 2009. They currently have an A+ rating, which is based on the company’s transparency and complaint history.

All in all, they seem to be highly regarded by past customers for both service and pricing.

Homespire Mortgage Pros and Cons

The Good

  • Can apply online via a digital mortgage application
  • Paperless process allows you to sync tax returns and bank statements
  • Lots of loan options to choose from
  • Discounts for healthcare workers
  • Lots of positive customer reviews
  • Brick and mortar branches for those who prefer human touch
  • They also service the loans they originate instead of selling them off
    Free mortgage calculators on site

The Potential Bad

  • Do not advertise their mortgage rates
  • No word on what lender fees they charge
  • Not licensed in all states at the moment

Source: thetruthaboutmortgage.com

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Today we’ll review Axia Home Loans, an up-and-coming independent mortgage bank that’s licensed in 17 states nationwide.

In case you were wondering, Axia is a Greek word that means “value” or “worth.”

They’re based out of the Pacific Northwest, Bellevue, Washington to be exact, and have been around for just over a decade, since 2007.

But they’ve still managed to become a billion-dollar mortgage lender, funding nearly $1.4 billion via the retail channel in 2019.

Axia Home Loans Fast Facts

  • Retail mortgage lender founded in 2007
  • Headquarters in Bellevue, Washington
  • Licensed to originate home loans in 17 states
  • Nation’s first 100% employee-owned independent mortgage bank
  • Funded roughly $1.4 billion in home loans during 2019
  • Half of their loan volume comes from Nevada and Washington
  • About two-thirds of total volume was home purchase financing
  • Just launched a mortgage broker division called United Reliance Wholesale (UR Wholesale)

Axia did about 30% of total loan volume in its home state of Washington, with another 20% in nearby Nevada.

Aside from those two states, they’re also licensed in Arizona, California, Florida, Hawaii, Idaho, Minnesota, Montana, North Carolina, Oregon, Pennsylvania, South Carolina, Texas, Utah, Wisconsin, and Wyoming.

They seem to specialize in home purchase financing, likely due to strong relationships with local real estate agents. But they also do a lot of refinance volume as well.

In October 2020, they launched a wholesale lending division for mortgage brokers called Unified Reliance Wholesale (UR Wholesale), with plans to focus on the West Coast, primarily in California.

How to Apply with Axia Home Loans

  • You can get started online, in-branch, or over the phone
  • They offer a digital mortgage application known as Axia Express
  • Allows you to securely link financial accounts and scan documents
  • Axia processes, underwrites, and funds all their home loans in-house

Axia Home Loans processes, underwrites, and funds their loans in-house, allowing them to close your mortgage quickly and efficiently.

They rely on emerging technologies like a digital mortgage application and smartphone app to make it easier to finance a new home purchase or refinance an existing home loan.

Their loan application is known as “Axia Express,” a platform that gives customers the option to automatically pull in tax returns, employment history, and bank statements.

Additionally, you can securely scan and upload documents from your mobile device and chat with your loan officer if you have questions.

Once submitted, you can track loan progress and receive status updates as your home loan makes its way to the finish line.

To get started, you can visit their website and select “Start the Home Loan Process” or “Connect with a Local Advisor.”

If you choose the first option, you can select a loan officer if you’ve been referred or know who you’ll be working with. From there, you can apply for a loan.

If you don’t have a loan originator, you’ll need to fill out a basic form with contact info and wait for a loan officer to contact you.

If you choose the Connect with a Local Advisor option, it’ll show you branches nearby and local loan officers who work there. Once you click through to a specific branch, you can apply online.

Axia Home Loans Mortgage Options

  • Home purchase loans
  • Rate and term refinances
  • Cash out refinances
  • Conventional loans backed by Fannie Mae and Freddie Mac
  • Government-backed loans including FHA, USDA, and VA
  • Jumbo home loans
  • HomePath financing
  • Fixed-rate and adjustable-rate loans in various terms

Axia Home Loans offers both home purchase financing and mortgage refinances, including rate and term refinances and cash out refinances.

Those thinking of buying a home can take advantage of Axia’s Certified Homebuyer Program, which is an actual credit approval that is analyzed by their underwriting department (verified pre-approval).

You can get a home loan on a primary residence, second home, or an investment property.

They offer conventional loans backed by Fannie Mae and Freddie Mac and government home loans, including FHA, USDA, and VA loans.

Those in need of larger loan amounts can get a jumbo home loan from Axia as well.

Additionally, they provide HomePath financing on Fannie Mae-owned properties.

In terms of loan programs, you can get either a fixed-rate mortgage (such as a 15-year or 30-yer fixed) or an adjustable-rate mortgage, like a 5/1 ARM.

It’s unclear if they offer renovation or construction loans, or any home equity line/loan products.

All in all, they have loan programs to fit the needs of most customers.

Axia Home Loans Mortgage Rates

While Axia says they offer competitive rates, they don’t advertise mortgage rates on their website.

While this doesn’t indicate whether their rates are good, bad, or just plain average, it does make it a bit more difficult to get pricing.

In other words, you’ll need to get in contact with a loan officer to see what type of mortgage rate you qualify for.

The same goes for lender fees, which don’t appear to be listed on their website. Be sure to inquire about what they charge, such as underwriting, processing, and loan origination fee.

All that will factor into the mortgage APR, which is an important calculation that takes into account both the interest rate and the fees included.

Axia Home Loans Reviews

On Zillow, Axia Home Loans enjoys a 4.95-star rating out of 5 on roughly 2,000 customer reviews.

You can click on individual loan officer names as well to get their ratings if you want to work with someone highly-rated.

While they keep us in the dark regarding mortgage rates, many of the Zillow reviews indicate that both interest rates and closing costs were favorable.

On SocialSurvey, they’ve got a 4.92 rating out of 5 from more than 13,000 customer reviews.

And on BirdEye, a 4.9 rating based on more than 200 reviews. So they appear to consistently make their customers happy.

They also say they’ve got a 98% client satisfaction rating based on current surveys.

Lastly, they are accredited with the Better Business Bureau and currently have an A+ rating. There are no customer reviews on the BBB website and few complaints.

Axia Home Loans Pros and Cons

The Good

  • Can apply online, by phone, or in-branch
  • Offer free personalized mortgage consultations
  • Digital mortgage application
  • Free smartphone app
  • Free mortgage calculator on site
  • 100% employee-owned mortgage lender
  • Some of their loan officers speak Spanish and Vietnamese
  • Excellent customer reviews
  • A+ BBB rating

The Maybe Not Good

  • Only licensed in 17 states
  • Do not disclosed their mortgage rates
  • No mention of lender fees
  • Don’t offer home equity loans/lines

(photo: SounderBruce)

Source: thetruthaboutmortgage.com

Apache is functioning normally

Attention Zillow shoppers, if you’ve used their mortgage marketplace to compare mortgage rate quotes, you may have come across Semper Home Loans.

The direct-to-consumer mortgage lender seems to advertise quite a bit on the Zillow platform and often takes the top spot in the listings with its seemingly low rates and APRs.

Let’s learn about this mortgage company to determine if they’re the best fit for your home loan needs.

Semper Home Loans Quick Facts

  • Direct-to-consumer mortgage lender founded in 2005
  • Headquartered in Providence, Rhode Island
  • Currently licensed in 40 states and Washington D.C.
  • Funded roughly $300 billion in 2019 via the retail channel
  • Offer home purchase financing, mortgage refinances, and home renovation loans

In 2005, Semper Home Loans was founded by current president Matthew Sullivan, a 20+ year mortgage industry veteran.

The company is located in Providence, Rhode Island, but also has branch locations in several states, including Arizona, California, Florida, New York, Oregon, Texas, and so on.

They funded roughly $300 billion in home loans via the direct-to-consumer retail channel last year, with a home purchase loan share of roughly 60%.

Semper Home Loans helps both prospective home buyers obtain mortgage financing, and existing homeowners looking to refinance their mortgages.

At the moment, they appear to be licensed in 40 states, including: Alabama, Arizona, California, Colorado, Connecticut, Delaware, Florida, Georgia, Illinois, Indiana, Iowa, Kansas, Louisiana, Maine, Maryland, Massachusetts, Michigan, Missouri, Montana, Nebraska, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, Washington D.C., and Wyoming.

How to Apply for a Mortgage with Semper Home Loans

  • They offer a digital mortgage application called HomeEasy powered by Ellie Mae
  • Allows you to apply remotely from smartphone or computer without any human interaction
  • Borrowers can securely upload paperwork, eSign documents, and link financial accounts
  • Those who want a hands-on approach can call or request a free consultation with a loan officer

One thing I like about Semper Home Loans is the fact that you can apply for a mortgage right from their website without any human interaction.

Many of today’s homeowners want to go it alone, and Semper Home Loans appears to let you do just that if you wish.

They provide a digital mortgage application powered by Ellie Mae that makes it easy to get the ball rolling from just about anywhere.

Once at the application page on their website, simply click on “Create Account” to begin the mortgage application process.

Like a traditional mortgage application, you’ll be required to plug in various personal and financial information.

You can complete the app from any device, such as a smartphone, and do so via a paperless process that should make it a lot quicker, more secure, and more accurate.

Borrowers have the ability to securely upload paperwork, eSign documents, run their own credit reports, and verify assets by linking accounts.

After you’re approved, you can make contact with your loan officer at any time and receive status updates as your loan progresses to the funding table.

If you prefer a more hands-on approach, you can schedule a free consultation with a Semper Home Loans loan originator or simply call them up directly.

Loan Types Offered by Semper Home Loans

  • Home purchase loans
  • Refinance loans including rate and term, cash out, and streamline
  • Renovation loans such as the FHA 203k
  • Conventional loans backed by Fannie Mae and Freddie Mac
  • Jumbo home loans that exceed conforming loan limits
  • FHA loans, USDA loans, and VA loans
  • Fixed-rate and adjustable-rate mortgage options available

Semper Home Loans Mortgage Rates

Semper Home Loans does not publicize its mortgage rates on its own website, which is a slight negative but not necessarily a bad thing.

Some mortgage companies like to advertise their interest rates everywhere (see Intelliloan), while others choose to keep their rates to themselves.

It’s understandable why a lender wouldn’t post them on their website since advertised rates are very limited and come with lots of assumptions.

In other words, if you have a different credit score, property type, loan amount, or transaction type, the rate you see might be nothing close to what you actually qualify for.

That being said, they do seem to advertise quite a bit on Zillow, so if comparing mortgage rates there, you might see their rates to get a better idea of pricing.

I came across them on Zillow and they topped the rankings for lowest mortgage APR and mortgage rate for a sample loan scenario, thanks in part to charging just $1 in lender fees.

To that end, you can probably get a no cost refinance with the company as well if you want to keep closing costs low or nil.

Semper Home Loans Reviews

On Zillow, they enjoy a 4.91-star rating out of 5 possible based on over 1,000 customer reviews.

A good portion of their past customers said both the interest rate and closing costs were lower than expected.

And many of the reviews remarked about the great rates or how low the rates were that they offer.

They are an accredited company with the Better Business Bureau, and have been since inception in 2005. They currently have an A+ BBB rating.

Semper Home Loans has a 2.5-star rating out of 5 on the BBB website, but it’s based on just six reviews, so not a large sample size. And the reviews on the BBB website tend to be customer complaints.

They have a 4.4-star rating on both WalletHub and Birdeye as well based on about 100 customer reviews each.

All in all, they appear to be well-liked by their customers, though like all mortgage companies have their share of issues and unpleasant experiences.

Semper Home Loans seems to be a good choice for a borrower looking for convenience and low rates, who may not need any hand-holding from their lender.

Semper Home Loans Pros and Cons

The Pros

Appear to offer low mortgage rates with $1 lender fees
Offer a digital mortgage application that allows you to apply from anywhere
Can apply for a home loan without contacting a human first
Excellent reviews from past customers
A+ BBB rating
Some of their loan officers also speak Portuguese and Spanish
Free mortgage calculators on site

The Cons

Not licensed in all 50 states
Don’t list mortgage rates or lender fees on their website
Limited branch locations
They don’t service their home loans

(photo: Barry Caruth)

Source: thetruthaboutmortgage.com

Apache is functioning normally

If you live in California, you may have seen or heard commercials for Intelliloan, a mortgage company that boldly advertises its mortgage rates every chance they get.

Unlike many other mortgage lenders out there, who don’t even mention their interest rates or lender fees, Intelliloan puts it out there for everyone to see.

Of course, leading with your mortgage rates isn’t so easy, since they can change daily and quite significantly from month-to-month.

This might explain why Intelliloan is constantly updating the mortgage rates in its commercials – fortunately, they’ve been moving in the right direction lately, lower.

Intelliloan Fast Facts

  • Direct-to-consumer mortgage lender located in Costa Mesa, CA
  • Founded in 1993 by Darryl Preedge
  • Licensed to do business in 33 states nationwide
  • Specialize in low mortgage rates with no lender fees
  • Seem to do much of their business in their home state of California

First a little brief history on Intelliloan, which opened its doors back in 1993 in Downey, California.

It was founded by Darryl Preedge, who had worked for a lender for three years before venturing out to open his own mortgage shop.

The company started with just three employees, but has since grown into a national mortgage lender licensed to do business in 33 states.

At the moment, they don’t appear to lend in Alabama, Alaska, Hawaii, Indiana, Kansas, Kentucky, Missouri, Montana, Nebraska, New York, North Carolina, Ohio, West Virginia, or Wyoming.

They seem to do most of their home loan lending on the West Coast, particularly in California.

Applying for a Mortgage with Intelliloan

Intelliloan is a direct-to-consumer mortgage lender, meaning you work with them online or by phone remotely.

They say it takes about 15 minutes to get your mortgage approval started. And that process begins by filling out a short lead form on their website.

From there, they’ll ask you to create an Intelliloan account and you’ll need to provide some basic contact information.

Then you’ll proceed to fill out a loan application with the help of a loan specialist.

Alternatively, you can use the chat/text feature on their website to begin, which allows you to speak to a specialist right away if you have questions.

Or you can simply call them up on the phone to get started.

It’s unclear if they offer a digital loan application after that point, but it appears to be pretty no-frills and direct.

They say they’re big on customer service and satisfaction, so hopefully that’s demonstrated in the loan process from start to finish.

Loan Types Offered by Intelliloan

  • Home purchase and mortgage refinance loans
  • Conforming loans backed by Fannie/Freddie
  • Government home loans including FHA loans and VA loans
  • Jumbo home loans up to $3 million loan amounts
  • Reverse mortgages for those 62 and older
  • Fixed-rate options: 30-year fixed and 15-year fixed
  • ARM options: 5/1, 7/1, and 10/1 ARMs

Intelliloan offers all the typical stuff you’d expect from a mortgage lender, including home purchase financing and mortgage refinancing.

Their bread and butter is probably refinance loans since they offer super low mortgage rates, a key decider for those looking to refinance an existing home loan.

But they also offer home purchase financing on primary residences, second homes, and investment properties. And they’ll get you pre-approved so you can shop with confidence.

In terms of loan type, they offer conventional conforming loans backed by Fannie Mae and Freddie Mac, along with government home loans including FHA loans and VA loans.

They don’t appear to offer USDA loans, and it’s unclear if they offer construction or renovation loans.

It seems they are focused on straightforward vanilla stuff that isn’t too complicated, which allows them to close loans fast and offer low rates.

In fact, they mention in their fine print that they’re not currently accepting applications from self-employed borrowers, nor will they accept conforming loan amounts below $200,000.

However, they do offer jumbo loan financing with loan amounts as high as $3 million, and cash out as high as $500,000.

Additionally, aside from fixed-rate options, they offer adjustable-rate mortgages that are fixed for the first 5, 7, or 10 years.

And they’ve got ARM options for both FHA loans and VA loans.

Homeowners aged 62 and older can take advantage of their reverse mortgage offering as well.

Intelliloan Mortgage Rates

As noted, Intelliloan isn’t shy about advertising its mortgage rates. In fact, just about every advertisement I’ve seen from them features a mortgage rate and/or mortgage APR.

So they lead with their pricing, which is a good sign if the lowest price/rate is what you’re after when purchasing a home or refinancing an existing mortgage.

Right on their homepage you’ll see “today’s rates,” which at last glance looked pretty darn good.

For example, on the day of this post they were offering a 30-year fixed at 2.325% (2.49% APR) and 15-year fixed at 1.75% (1.99% APR). Yes, that low.

The assumptions were a $300,000 loan amount a single family, owner-occupied property in the state of California. Minimum 740 FICO and 60% loan to value (LTV).

If you don’t fit all those criteria, expect a higher mortgage rate. But still, those advertised rates look pretty enticing.

They advertised similarly low rates for high-cost conforming loans and FHA/VA loans.

Intelliloan Rate Protection Promise

Intelliloan also offers a Rate Protection Promise that provides up to three years of so-called mortgage rate protection.

Simply put, if fixed interest rates fall below your current fixed rate on a previously closed Intelliloan mortgage, you can refinance to that lower fixed rate on a 15- or 30-year mortgage.

This can be exercised at any time after the first 100 days from loan closing up until the third anniversary of the loan closing.

You won’t have to pay any non-recurring closing costs (e.g. lender fees, appraisal fee, credit report fee, escrow, title, recording, notary, courier, etc.), but you will be responsible for any recurring closing costs such as prepaid interest, property taxes, insurance premiums, HOA dues, and so on.

Basically, it’s a no cost refinance if fixed mortgage rates happen to fall significantly in the three years that follow your original transaction with Intelliloan.

Of course, you can always shop around with other lenders, and may find that another can beat them on rate and offer it without closing costs.

Either way, you need to re-qualify for the loan, so it’s not totally automatic, it’s just a discounted refinance.

Intelliloan Reviews

On LendingTree, they have a 4.9-star rating out of 5 based on more than 500 reviews, with a 98% recommendation rating.

On Google, they’ve got nearly 200 reviews and a 4.5-star rating out of 5, which is obviously very good. Most former customers seem to be very happy with their service and rates.

On Yelp, they’ve got a 4.5-star rating based on about 200 reviews as well. It appears most of their customers refinanced an existing mortgage, which seems to be their top offering.

Similarly, they have an excellent 4.93-star rating out of 5 on the Better Business Bureau website based on over 200 reviews, which is pretty unheard of.

Usually, customers head over to the BBB to complain about a company, but that doesn’t appear to be the case here.

They are an accredited business with the BBB since 1999, but only have a B+ rating at the moment thanks to 13 complaints filed against the business.

All in all, they appear to be a mortgage lender focused on offering the lowest rates possible to borrowers who have fairly straightforward loan scenarios. If that’s you, they might be able to offer you an excellent rate.

But if you’re self-employed or have a complicated loan scenario, they may not be the best fit.

Intelliloan Pros and Cons

The Good

  • Appear to offer very low mortgage rates with limited or no lender fees
  • Excellent reviews on several ratings sites
  • BBB accredited company since 1999
  • Offer most major home loan types
  • Can apply for a mortgage directly from their website
  • Intelliloan Rate Protection Promise allows you to refinance without lender fees

The Maybe Not Good

  • Not licensed in all 50 states
  • Do not offer USDA loans
  • May not offer construction/renovation financing or home equity loans/lines
  • May not be a good fit for those with complex loan scenarios

Source: thetruthaboutmortgage.com

Apache is functioning normally

Apache is functioning normally

Today we’ll check out another one of the newcomers in the mortgage industry that is all about technology and low rates, aptly named “Lower Mortgage.”

Similar to Better, which is also a one-word-named mortgage company, they like to keep things simple and make it easy to apply for a home loan.

That means you can get started right on their website, or even begin your home loan process with a text message.

They’re also all about things being lower, whether it’s mortgage rates, lender fees, monthly payments, or the amount of hassle it takes to get a mortgage.

They even take a subtle jab at Quicken Loans on their website, saying “No rocketry. Just the important stuff—like lower rates.”

Let’s find out more about this low-loving, techy mortgage lender.

Lower Mortgage Quick Facts

  • Direct-to-consumer mortgage lender that offers home purchase loans and refinances
  • Launched in 2018, headquartered in New Albany, Ohio (just outside Columbus)
  • Originated roughly $5 billion in home loans last year
  • Licensed in 43 states and the District of Columbia
  • A top-rated lender on LendingTree that has won several customer satisfaction awards
  • They have a sister company called Homeside Financial (founded in 2013)
  • Exclusive mortgage provider for Opendoor

Lower, which actually refers to itself as a technology company, was launched in December 2018.

The main goal of the company is to improve the online mortgage and refinance experience, knowing that the majority of applicants start the process on the Internet.

In a sense, they’re kind of like Rocket Mortgage, which is the tech platform backed by parent company Quicken Loans.

Anyway, Lower is located in New Albany, Ohio, which is just outside Columbus and has been around since the end of 2018.

They’re currently licensed to do business in 43 states and the District of Columbia.

They don’t seem to do business in Hawaii, Nevada, New York, Rhode Island, South Dakota, Vermont, or Wyoming.

Last year, their parent company funded nearly $2 billion in home loans, with about half for home purchases and the remainder refis.

While they’re available in most states, the most volume came from states in the Midwest and Mid-Atlantic, notably Illinois and North Carolina, and their home state of Ohio.

It should be noted that Lower Mortgage also has a sister company called Homeside Financial, which was founded back in 2013 by current Lower CEO Dan Snyder.

Applying for a Mortgage at Lower

  • You can apply for a home loan directly from their website without assistance
  • They utilize a loan recommendation engine that relies upon artificial intelligence (AI)
  • It’s also possible to text or call them to get started on your application if you need help
  • Lower offers a digital mortgage process with document uploading, eSign technology, and more

Lower is definitely a new-age mortgage lender that relies heavily on tech. And a certain cool factor that differentiates them from the older, stale banks and lenders.

Aside from having a snazzy looking website, they also have a virtual loan assistant known as LOAi. It uses artificial intelligence to help you pick the best home loan for your unique situation.

Data is analyzed from thousands of closed loans and other peer data points to deliver a personal home loan recommendation in real-time.

In terms of applying for a home loan, you can do so right on their website by clicking “Apply Now.”

You actually get three options, including a “Jump Start,” “Quick Apply,” and a simple text to get the ball rolling. Clearly, they are a mortgage lender geared toward Millennials and Gen Z.

Use a Human or Navigate Lower.com on your Own

It’s also possible to just call them up if you’d like to speak to a human (they’re open Monday through Saturday).

If you choose the Jump Start option, it’s probably just a short contact form. This means a loan officer will get in touch after completion.

The Quick Apply Option appears to be sort of like a quick mortgage pre-qualification sans hard credit pull to start the actual loan process.

My assumption is you can complete mostly everything online or via smartphone since they’re a so-called “techy” mortgage lender.

This may include linking financial accounts, scanning and uploading paperwork, and eSigning documents along the way.

But humans are also available if and when you need them to discuss loan options, loan rates, or to answer any other mortgage questions you may have.

All in all, they pride themselves on making it quick and easy to get a mortgage, and all operations are conducted under one roof at Lower HQ.

Loan Types Offered by Lower

  • Home purchase loans
  • Refinance loans (rate and term and cash out)
  • Conventional loans backed by Fannie Mae and Freddie Mac
  • Government-backed loans including FHA loans, USDA loans, VA loans
  • Jumbo home loans
  • Home equity lines of credit (HELOCs)
  • Fixed-rate and adjustable-rate mortgage options available

Lower appears to keep things pretty simple, though they should have loan programs to suit most borrowers.

It is my understanding that you can get financing on all property types, including primary residences, vacation homes, and investment properties, including condos/townhomes.

You can get both a home purchase loan or a refinance, including a cash out refinance. They say you can access up to 95% of your home’s equity, which may separate them from other lenders.

This might be accomplished via a combo loan, utilizing a home equity line of credit (HELOC) and a first mortgage.

In any case, if you want to tap into your home equity, Lower might be a good option. But they also make it easy for those purchasing a home as well.

If they’re anything like their parent company Homeside Financial, you should be able to get a conforming loan, jumbo loan, or a government-backed loan such as a FHA loan or VA loan.

Both fixed-rate and adjustable-rate options are available, including 30/15 fixed mortgages and hybrid ARMs like the popular 5/1 ARM.

Lower’s Free Refi for Life Deal

For a limited time (unclear how long exactly), if you use Lower.com to buy a home or refinance, you won’t have to pay lending fees on future refinances, for life.

If you do refinance with Lower again, they’ll waive any Lower retained fees. This includes an applicable loan origination fee, underwriting fee, processing fee, or administrative fees.

However, it does not apply to any discount points or any third-party settlement service fees such as title insurance, home appraisal fee, or credit report fee.

You must have closed the previous refinance transaction with Lower at least six months prior to any subsequent application

Lower.com Mortgage Rates

With a name like Lower, you better publicize your mortgage rates, right?

Well, they do, right on their homepage, albeit just one rate, a 30-year fixed, which they refer to as “Today’s Lower Rate.”

While the rate appeared to be really low, they did disclose that it required 2.25 discount points, which can be pretty expensive.

For example, on a $300,000 loan amount, that’s $6,750 in closing costs, not to mention any other fees that must be paid.

They also list three competitors, which at the time of this writing, included Quicken Loans, Wells Fargo, and the Bankrate average.

As you might suspect, they beat all three handily, both on interest rate and mortgage APR, the latter of which factors in lender fees.

Speaking of, they actually have a page dedicated to lender fees on their website, but it only lists possible fees you might be charged, sans any actual dollar amounts.

This makes it a bit unclear as to what they charge and how much it might set you back.

Remember to look beyond mortgage rate alone, and really dig into the closing costs when comparing Lower to other mortgage lenders to ensure you get the best deal.

Lower Is the Exclusive Mortgage Provider for Opendoor

In early 2023, Lower became the exclusive mortgage fulfillment provider for Opendoor.

Opendoor is an iBuyer that helps home buyers an sellers. In order to focus on that business, they are outsourcing their mortgage services to Lower.

So if you work with Opendoor, there’s a good chance they’ll refer you to Lower for mortgage financing.

However, Opendoor customers are allowed to use any licensed mortgage lender.

Lower refers to it as a “Mortgage as a Service” (MaaS) platform. Simply put, companies can offer mortgage products to their customers via Lower.

Lower Mortgage Reviews

On LendingTree, they’ve got a 4.9-star rating out of 5 based on more than 2,100 customer reviews, along with a 99% recommendation rate.

They also have seven accolades from LT, including a top-10 for home lending customer satisfaction for Q1, Q2, and Q3 of 2020, along with Q4 of 2019, and similar awards for home equity lending.

On Zillow, they have a 4.92-star rating out of 5 on nearly 3,000 reviews, many of which say the interest rate was lower than expected. I sure hope so with a name like that…

Their parent company Homeside Financial is not Better Business Bureau accredited, but does enjoy an ‘A+’ rating at the moment based on customer complaint history.

In summary, Lower Mortgage is probably a good pick for someone who wants a low mortgage rate with limited fees that is comfortable applying for a home loan without much help (though it is available).

Lower Mortgage Pros and Cons

The Good

  • Offer a tech-enabled digital mortgage process
  • Can apply for a home loan directly from their website or via smartphone
  • They apparently have low mortgage rates and low lender fees
  • May be able to access more money because they offer HELOCs
  • Don’t charge lender fees on subsequent refinance transactions for life
  • Excellent customer reviews
  • A+ BBB rating
  • Free mortgage calculators and other tools on site

The Maybe Not

  • Not licensed in all states
  • Do not list their lender fees
  • Would be nice to see more mortgage rates
  • No brick-and-mortar locations

(photo: Marcin Wichary)

Source: thetruthaboutmortgage.com