Homepoint announced this morning that it has entered into a definitive agreement to sell the company’s wholesale origination unit to The Loan Store, Inc.
As a result, the Ann Arbor-based mortgage lender will no longer be a direct participant in the loan origination space.
However, Homepoint will continue to manage its mortgage servicing rights (MSR) portfolio, which it expects “to generate significant returns and cash flow over time.”
Prior to this move, Homepoint was the third largest wholesale mortgage lender in the country, behind just United Wholesale Mortgage and Rocket Mortgage TPO.
Homepoint Was a Top-10 Mortgage Lender
Homepoint saw explosive growth since its founding in 2015 via the acquisition of Maverick Funding.
It took them less than a decade to grow out a 2,000+ employee workforce and become a top-10 mortgage lender.
In 2021, the company originated an impressive $96 billion in home loans, landing them in ninth place overall.
However, due to difficult market conditions, namely a doubling in mortgage rates, profitability became an issue, leading to a series of layoffs nationwide.
Prior to this announcement, the company operated solely in the wholesale channel via mortgage brokers, meaning they will no longer have a place in the mortgage origination business.
In the past, they also operated a correspondent and retail division before shrinking operations.
Today, Homepoint made what they felt was the “best decision for our company to continue to deliver value to Home Point shareholders.”
But due to the sale, “its nine-year tenure as a direct participant in the originations market” will come to an end.
As noted, the company will continue to manage “its high-performing MSR portfolio.”
Homepoint is publicly-traded on the Nasdaq stock exchange under the symbol NASDAQ: HMPT.
At last glance, Homepoint was up about 21% on the news, though the stock is down about 33% over the past 12 months, and 82% over the past five years.
The Loan Store Looks to Grow Its Mortgage Footprint
Despite being founded in 2019, The Loan Store, Inc. is acquiring the third largest wholesale lender in the mortgage space.
Those other two lenders, UWM and Rocket Mortgage, happen to be the largest mortgage lenders across all origination channels.
This should allow the Tucson, Arizona-based company to grow exponentially, despite industry headwinds related to higher mortgage rates.
The Loan Store, Inc. currently operates solely via the wholesale channel, offering a variety of loan products via mortgage broker partners.
This includes conforming loans, jumbo loans, VA loans, and non-QM offerings like bank statement loans and DSCR (Debt Service Coverage Ratio) loans.
The company prides itself on “fast, simple home loans,” and has funded over $10 billion since inception.
It does not retain loan servicing for any of the mortgages it originates.
Prior to the acquisition, The Loan Store did business in about two dozen states.
Those include Alabama, Arizona, California, Colorado, Connecticut, Florida, Georgia, Idaho, Illinois, Indiana, Kansas, Kentucky, Louisiana, Maryland, Michigan, Minnesota, New Jersey, North Carolina, Ohio, Oregon, Pennsylvania, South Carolina, Tennessee, Texas, Utah, Washington, and Wisconsin.
The merger should allow them extend their reach nationwide and potentially be licensed in all 50 states.
The company expects the sale to close in the second quarter of 2023, subject to customary closing conditions.
It’s unclear if any employees will be impacted as a result of the agreement.
With the weather warming up, I thought it’d be prudent to check out “Spring EQ,” a lender that specializes in getting cash out of your home.
By that, I mean they offer cash out refinances and second mortgages, including both home equity loans and lines of credit (HELOCs).
They also partner with other lenders to provide secondary financing, so if you get a combo loan, you might find that they’re your lender on the second mortgage.
Aside from allowing you to tap your home equity, they also offer home purchase financing too, so they’re a full-service lender.
Let’s learn more about them to determine if they could be a good option for your first or second mortgage, or even both.
Spring EQ Fast Facts
Direct-to-consumer nonbank lender that offers first and second mortgages
Including home equity loans and home equity lines of credit
Founded in 2016, headquartered in Philadelphia, Pennsylvania
Currently licensed to do business in 39 states and D.C.
Also operates a wholesale lending division for its mortgage broker partners
Spring EQ is a direct-to-consumer mortgage lender based out of Philadelphia, Pennsylvania that got its start in 2016.
Originally, they sought to transform the home equity lending business model from “a long, drawn-out paperwork based process into a 21st century digital experience.”
This mirrors the efforts currently being made by mortgage lenders that focus on first mortgages, moving from a clumsy, slow process into a digital one powered by the latest technology.
While they got their start originating second mortgages, such as home equity lines and HELOCs, today they also originate home purchase loans and refinance loans.
And they refer to themselves as one of the fastest growing mortgage lenders in the country, though it’s unclear how much volume they did last year.
The company also operates a wholesale lending division for mortgage broker partners, and says it serves customers at other lenders including SoFi, Mr. Cooper, and Roundpoint.
Interestingly, Spring EQ Wholesale utilizes the FICO Score 8 model and encourages its clients to use Experian Boost, which can result in higher credit scores almost instantly and maybe lower interest rates too.
At the moment, they’re licensed to do business in 39 states and the District of Columbia.
They’re not available in Alaska, Hawaii, Idaho, the Dakotas, West Virginia, or Wyoming, but say they’re coming soon to Massachusetts, Missouri, New York and Utah.
How to Apply for a Mortgage with Spring EQ
To get started simply visit their website and click on “Get My Options”
This will allow you to see which loan programs are available
An expert guide (loan officer) will then get in touch to further discuss pricing and options
Once your loan is submitted you can manage it via the online Spring EQ Portal
As noted, Spring EQ has turned to technology to make the process of obtaining a home loan (and home equity loan) more pain-free.
They say you can get pre-qualified in just a minute, and apply online when you’re ready to move forward, using the latest tools to speed up the once-arduous process.
This includes the ability to link financial accounts, scan/upload documents, and eSign disclosures on the fly.
Once your loan is submitted, you’ll be able to manage it via the Spring EQ Portal.
It appears they move quickly, as they say many purchase loans and refinances can close in 20 days or less, while home equity customers can get their money in as few as 11 days.
All in all, the loan process should be mostly electronic and doable from any device, such as a smartphone or desktop computer.
Loan Programs Offered by Spring EQ
Home purchase loans
Refinance loans: rate and term and cash out
Conforming loans backed by Fannie Mae and Freddie Mac
Second mortgages
Home equity loans
Home equity lines of credit (HELOCs)
Spring EQ is similar to other standard mortgage lenders in that they offer home purchase loans and refinances, including rate and term and cash out offerings.
It’s unclear what specific loan programs are available other than the popular 30-year fixed, though I’d imagine a 15-year fixed, and maybe an adjustable-rate mortgage like the 5/1 ARM.
I think they only offer conforming loans backed by Fannie Mae and Freddie Mac, with government loans like FHA/USDA/VA perhaps in the works.
What sets them apart is their second mortgages, something that has become a relative rarity these days.
This includes both home equity loans and HELOCs, the latter of which are lines of credit that allow you to draw more cash over time if needed.
These second mortgages can be used concurrently with a first mortgage to extend financing, in the case of a purchase, or simply as standalone financing.
They say you can borrow up to 90% combined-loan-to-value (CLTV), which is the total of your first and second mortgage balances against the property’s value.
This is higher than what you might be able to obtain via a traditional first mortgage, which could be capped at 80% LTV if backed by Fannie Mae or Freddie Mac.
For example, if you have a $300,000 first mortgage you really like that’s fixed for 30 years at 2.5%, you might be able to borrow an additional $60,000 on a home valued at $400,000.
That way the low interest rate on your first mortgage remains untouched while allowing you to tap equity.
I believe they lend on primary residences, second homes, and investment properties, including condos/townhomes.
Additionally, they serve self-employed borrowers, though required income documents may be more extensive.
Spring EQ Mortgage Rates
One slight negative to Spring EQ is the lack of information regarding mortgage rates and lender fees.
After a visit to their website, I was unable to discover any interest rates listed, nor could I find any lender fees charged.
This doesn’t mean their pricing is good, bad, or in-between, it just means you’ll need to get in touch with a loan officer first to determine your rate.
As such, you may want to give them a call first to discuss eligibility and pricing before signing up via their website.
Obviously, loan pricing is a big part of the equation, so knowing how competitive Spring EQ is relative to other lenders is important.
That being said, they may offer proprietary loan programs that other companies may not be able to match, especially in the second mortgage department.
Spring EQ Reviews
On LendingTree, the company has a solid 4.6-star rating out of 5 from nearly 400 customer reviews, along with an 89% recommended score.
Additionally, Spring EQ was the #1 lender in the home equity category for customer satisfaction in the second quarter of 2020, and top-3 in the third quarter of 2020.
Over at Google, they’ve got a 4.2-star rating out of 5 from nearly 300 reviews, which is also a superior rating.
On Zillow, it’s a similar 4.53-star rating from a smaller sample size of about 55 reviews.
Lastly, they’ve got a 4.47/5 rating on the Better Business Bureau website, which is surprisingly high for a complaint-driven site. And they’re an accredited business with an ‘A+’ rating.
In summary, Spring EQ could be a good choice if you’re interested in a second mortgage, such as a home equity line or loan, and want to keep your first mortgage intact.
This could become a popular trend if and when mortgage rates really begin to rise.
But they also provide home purchase financing now as well, and could structure your loan as a combo to take advantage of better pricing while avoiding costly PMI.
Spring EQ Pros and Cons
The Good Stuff
Can apply for a loan directly from their website in minutes
Provide a fast, digital process and an online borrower portal
Offer second mortgages (HELOCs and home equity loans)
They say many loans close in 20 days or less
Serve both salaried and self-employed borrowers
Excellent customer reviews from past customers across all ratings sites
A+ BBB rating and an accredited business since 2016
Most mortgages carry a 30-year term, even if they’re adjustable for some period of those three long decades.
But in some cities, it’s reasonably possible to pay off your mortgage a lot earlier thanks to low home prices and decent wages.
Now, this isn’t to say you should pay your mortgage down aggressively…it’s just that you could, if you were so inclined.
Unsurprisingly, most of the cities in the top 10 list can be found in the central states, like Ohio, Michigan, and Missouri. But there are also spots in Pennsylvania and New York where home buyers can get free and clear in no time at all.
The Fast List
The data nerds over at Realtor came up with the list above by calculating median home prices in the top 50 markets in the U.S. and lining them up with the recommended 28% housing DTI ratio.
The result is a short 5.4 years to pay off a median priced home of $128,000 in Cleveland, Ohio. Sure, your football team won’t be very good, but at least you’ll have a football team.
And if you focus on tackling the mortgage, you’ll only have to pay taxes and insurance on your digs in little more than half a decade.
That’s certainly pretty cool if you’re not one to carry lots of debt. And you might get a decent water view on the “North Coast,” a term I’ve never heard until today.
You can pull off the same magic in cities like Rochester, NY, Pittsburgh, PA, and Buffalo, NY.
There are plenty of other major metros on the list as well, including the likes of St. Louis, Indianapolis, Cincinnati (hard to spell, but decent football), and Kansas City (great baseball).
In Indy, some 71% of the homes are affordable to prospective home buyers, and St. Louis was deemed a top 10 up-and-comer by Realtor.com thanks to strong projected home sales and future home price appreciation.
So if you don’t want to worry about the mortgage for more than a handful of years, as opposed to into your old age, check out those cities. You may even be able to take out a 15-year or 10-year fixed mortgage at the outset to save a ton in interest and grab a lower mortgage interest rate.
Conversely, if you want to keep your mortgage forever, look at these 10 superstars.
The Slow List
In Los Angeles, it will actually take you nearly the full 30-year term to pay off your mortgage. The annual income of around $100,000 in the 90210 requires a lengthy 29.4-year amortization period.
So no 15-year fixed for you unless you’re making big bucks. You’ll need a 30-year mortgage.
The same goes for much of the Bay Area, including San Jose and San Francisco, and in sunny San Diego. That explains why lenders are increasingly offering zero down mortgage options like the POPPYLOAN.
Hot cities such as Denver are starting to get a hair expensive too seeing that it’ll take the average buyer 21.3 years to pay off the mortgage without breaking the bank or raiding the retirement nest egg.
It’s a little bit better in places like Miami and Portland, but these cities are clearly getting more expensive as homeowners from nearby states (and countries) flock to affordability.
However, there are still some relative bargains to be had in places like Sacramento, California and Austin, Texas where it can take less than 15 years to get mortgage-free while still saving for retirement and living comfortably.
Massachusetts is a beautiful state, filled with culture and history. It’s also a populous state that’s home to a wide range of businesses, including many in the biotechnology and engineering fields.
If you live in Massachusetts, you’ll need to find a bank that fits your lifestyle and savings needs. Fortunately, Massachusetts has no shortage of local banks, regional banks, national banks, and credit unions. The many options can make it hard to narrow down the best banks in Massachusetts for you. Below are some of the best banks in Massachusetts.
10 Best Banks in Massachusetts
From small local banks to national banks with locations in Massachusetts, here are some of the best banks in Massachusetts to help you find the right fit.
1. Citizens Bank
Citizens Bank is a regional bank with branches in Massachusetts, as well as Connecticut, Delaware, Florida, Maryland, Michigan, New Hampshire, New Jersey, New York, Ohio, Pennsylvania, Rhode Island, Vermont, Virginia, and Washington, DC. Fee-free ATM access is only available at Citizens Bank ATMs, but out-of-network fees are only $2 per transaction.
Fees:
$9.99 monthly service fees (waived with one deposit per month)
$35 overdraft fee
Balance requirements:
No minimum deposit to open
No minimum daily balance required
ATMs:
Fee-free at more than 3,200 locations in 11 states
$3 fee for each out-of-network ATM transaction
Interest on balance:
Up to 0.07% APY on savings accounts
Up to 2.75% APY on CDs
Up to 2.75% APY on money market accounts
Additional perks:
Credit cards offer $150 bonus and cash back
Discounts on mortgages and home equity loans
2. Rockland Trust Bank
Rockland Trust Bank is a local bank headquartered in Rockland. Branches and ATMs are located throughout Massachusetts. If you’re looking for a local bank, Rockland Trust Company is one of the best banks in Massachusetts. They not only offer great customer service, but they also have fee-free checking accounts and all the latest mobile banking features.
Fees:
No monthly fees
$35 overdraft fee
Balance requirements:
$25 deposit to open
No minimum daily balance required
ATMs:
Fee-free at Rockland Trust Bank ATMs
$2 fee for each out-of-network ATM transaction
Interest on balance:
Up to 0.01% APY on savings accounts
Up to 0.05% APY on CDs
Up to 0.10% APY on money market accounts
Additional perks:
Smart ATMs offer enhanced features
YourBanker provides customer support within the app
3. Chime
While there are no branches in Massachusetts, Chime could give you everything you need. Chime is one of several online banks offering Massachusetts residents free checking accounts, a high-yield savings account, and fee-free access to cash at more than 60,000 ATMs1 nationwide.
Fees:
No monthly service fees
No overdraft fees5
Balance requirements:
No minimum deposit to open
No minimum balance required
ATMs:
Fee-free at 60,000+ ATMs nationwide
$2.50 out-of-network ATM fee
Interest on balance:
2.00% APY3 on savings accounts
Additional perks:
Early direct deposit access2
SpotMe provides $200 overdraft protection
4. Salem Five Bank
Another local bank that’s one of the best banks in Massachusetts is Salem Five, a Salem-based bank with a heavy concentration in the Boston area. Salem Five only has one checking account, a fee-free option that offers $.05 cash back on debit card purchases. You’ll get nationwide cash access while traveling, thanks to a partnership with the AllPoint network.
Fees:
No monthly service fees
$35 overdraft fee
Balance requirements:
$10 minimum deposit to open
No minimum balance requirements
ATMs:
Fee-free at Salem Five ATMs
Fee-free at 55,000+ AllPoint ATMs nationwide
$2 out-of-network ATM transaction fee
Interest on balance:
Up to 0.01% APY on savings accounts
Up to 4.41% APY on CDs
Additional perks:
$0.05 cash back on debit card purchases
Solid small business banking options
5. Greylock Federal Credit Union
If you’d prefer a community bank, check to see if you qualify for membership at Greylock Federal. You’ll get a free checking account and competitive interest rates on personal banking options like loans. Greylock has 14 locations in Berkshire County, Massachusetts, and Hudson, New York, as well as a co-op partnership that offers ATM access nationwide.
Fees:
No monthly fees
$15 overdraft fee
Balance requirements:
$15 minimum deposit to open
No minimum balance requirements
ATMs:
Fee-free at Greylock Federal Credit Union ATMs
Fee-free at co-op ATMs nationwide
$3.25 out-of-network ATM transaction fee
Interest on balance:
Up to 0.20% APY on savings accounts
Up to 3.05% APY on Share CDs
Additional perks:
Competitive rates on auto loans
Video teller services available
6. GO2bank
Another option for those who don’t mind doing all their banking online is GO2bank. GO2bank is one of the best banks for those who use a lot of cash. You’ll get fee-free access to AllPoint ATMs nationwide, as well as cash deposits at 90,000+ retailers. There’s also a free checking account, as well as a savings account that earns 4.50% APY.
Fees:
No monthly maintenance fees
$15 overdraft fee
Balance requirements:
No minimum daily balance
No minimum deposit to open
ATMs:
Fee-free at AllPoint ATMs nationwide
$3 for each out-of-network ATM transaction
Interest on balance:
4.50% APY on savings
Additional perks:
Deposit cash at 90,000 retailers nationwide
7% instant cash back on gift card purchases
7. Eastern Bank
Eastern Bank is one of the best banks in Massachusetts if you’re looking for a bank with a deep history in the area. Based in Boston, Eastern Bank has been around since 1818 and has evolved over the years.
If you’re in the market for a new checking account, you can currently earn a bonus of up to $600 for opening a new account. The bonuses are balanced based, so a balance of less than $4,000 will earn you only $200.
Fees:
No monthly maintenance fees
$35 overdraft fee
Balance requirements:
$25 minimum deposit to open
No minimum daily balance
ATMs:
Fee-free at Eastern Bank ATMs
Fee-free at thousands of SUM Program ATMs nationwide
$2 out-of-network ATM fee
Interest on balance:
0.01% APY on savings accounts
Up to 4.50% on CDs
Up to 3.50% APY on money market accounts
Additional perks:
Up to $600 bonus for new accounts
Up to $50 in overdraft protection
8. Middlesex Savings Bank
Middlesex Savings Bank is the largest mutual bank in Massachusetts. Branches and ATMs are largely centered in the Boston area, but checking account holders get fee-free ATM use at AllPoint ATMs nationwide. If you have direct deposit or are under the age of 26, you’ll also qualify for up to five ATM fee reimbursements per statement cycle.
Fees:
No monthly maintenance fees
$35 overdraft fee
Balance requirements:
$1 minimum deposit to open
No minimum daily balance
ATMs:
Fee-free at Middlesex savings bank ATMs
Fee-free at AllPoint ATMs nationwide
Up to five out-of-network ATM fee reimbursements per year
$2 out-of-network ATM fee
Interest on balance:
Up to 1.45% APY on savings
Up to 1.55% on CDs
Up to 4.50% APY on money market accounts
Additional perks:
Competitive rates on mortgages and personal loans
Earn $50 for each new qualifying referral
9. Mass Bay Credit Union
With branches in South Boston, Everett, Quincy, and the Seaport District, Mass Bay is like many credit unions in that it offers competitive rates on deposit accounts and loans. You’ll have live access to customer service at Mass Bay branches in Massachusetts, as well as through three Interactive Teller Machines in the area. You’ll need to live or work in Boston or the surrounding areas to qualify for an account.
Fees:
No monthly maintenance fees
$25 overdraft fee
Balance requirements:
No minimum daily balance
$5 minimum opening deposit
ATMs:
Fee-free at Mass Bay CU ATMs
Fee-free at AllPoint ATMs nationwide
Six free out-of-network withdrawals per month ($1 per transaction after that)
Interest on balance:
Up to 0.10% APY on savings (share accounts)
Up to 3.35% on CDs
Up to 0.80% APY on money markets
Additional perks:
Free financial counseling for members
Free interest-bearing checking account for balances of $400 or more
10. Bank of America
Although it’s not a community bank, there are benefits to national banks like Bank of America, including access to branches and ATMs nationwide. One downside to Bank of America is that each checking account comes with monthly maintenance fees. But you can waive those by having direct deposit, maintaining a $1,500 daily balance, or enrolling in the Bank of America Preferred Rewards program.
In addition to physical locations and ATMs, Bank of America also has a robust selection of mobile banking features that keep banking convenient.
Fees:
$12 monthly fee (waived with requirements)
$10 overdraft fee
Balance requirements:
No minimum daily balance ($1,500 to waive maintenance fees)
$100 minimum opening deposit
ATMs:
Fee-free at 16,000 Bank of America ATMs nationwide
$5 for each out-of-network ATM transaction
Interest on balance:
Up to 0.04% APY on savings
Up to 4.50% on CDs
Additional perks:
$200 bonus for new credit card signups
Mobile banking offers enhanced security features
What kind of account is right for you?
Financial institutions come in a variety of forms, and the one that’s best for you depends on your needs. Do you need wealth management services, or is avoiding ATM fees while traveling a bigger priority? It’s important to first make sure a bank is insured by the Federal Deposit Insurance Corporation, but from there, it’s all about looking for the best bank to help with your financial life.
Advantages and Disadvantages of Local Banks
They might not have all the amenities of the biggest banks, but local banks do have their advantages. You’ll often get many of the basic features of an online bank through the mobile banking app, including easily transferring money and depositing checks. The best local bank is involved in the community and offers small business banking and loan options that are above and beyond what national banks offer.
But even the best local bank can fall short in some areas. Not all local banks are insured by the Federal Deposit Insurance Corporation, so it’s important to check for that. Local banks may also offer limited banking services and less competitive rates on savings and retirement accounts than other banks.
Advantages and Disadvantages of Online Banks
Online banks are an option, regardless of where you live. Today’s online accounts typically offer all the amenities you need, including the ability to transfer money and deposit checks.
If you regularly deal with cash, though, an online bank might not be as good a deal as you’d get with other types of bank accounts. Some online banks have ATM network partnerships that let you withdraw and deposit cash nationwide.
For those who don’t usually need cash, though, it might be worth looking into what the bank charges for out-of-network ATM fees. Keep in mind that the other bank will assess a fee in addition to the one your bank charges.
Advantages and Disadvantages of National Banks
No matter where you live in Massachusetts, national banks probably have branches nearby. Bank of America, for instance, has branches throughout Massachusetts. The best thing about national banks is that you can always find a branch and ATM, even if you leave home.
But there’s another benefit to going big. With a corporate bank, you often have a broader range of features. There may be multiple deposit accounts, including a free checking account, an interest-bearing account, and savings account options that will help with retirement planning. Many large banks also offer investment accounts and advisors to help you manage your money.
There is a disadvantage to going national, though. Unlike other banks in your area, you might find it tough to get customer service when you need help with your checking account, savings account, or wealth management. Yes, you can visit a local branch, but if the representatives are busy, you might have a long wait.
Advantages and Disadvantages of Regional Banks
Regional banks can combine the best of both extremes. For one, you’ll probably find branches and ATMs when you leave the state to go to nearby areas like Rhode Island or New York. A regional bank may also offer unlimited ATM reimbursements or have partnerships with networks that give you fee-free cash access nationwide.
Being in between can work against a regional bank, though. You might find that interest rates aren’t as competitive as online accounts that are trying to win business. A regional bank may only offer one checking account, compared to the multiple options you get with corporate banks. But you may also not get the same personalized service as you’d get with going local.
Frequently Asked Questions
How can someone determine whether a bank is the right fit for them?
What’s right for someone else might not be the best option for you. While shopping for banks, keep in mind the features you’ll use most often, as well as how important it is to bank locally. If you need that in-person contact that you can only get at a local bank, an online bank likely won’t work for you. If competitive rates and an easy-to-use mobile app are more valuable, you can kick off your search with that in mind.
What should someone look for in an online bank?
Online banks give you everything you need to manage your account through an app. You’ll likely also be able to access your online bank through the website. If you need to deposit a check, transfer money, or pay bills, you can do it. But where online banks fall short is when it comes to cash. Make sure you can deposit and withdraw cash when you need it without having to pay dozens of dollars in fees every year.
Which account is best for you?
It’s never been easier to manage your finances. Mobile banking lets you do everything electronically. But the right account is one that helps you set money aside and earn interest on it while also keeping fees to a minimum. You’ll also want a bank that gives you the type of customer support you prefer. Whether that’s 24/7 support by phone or through in-app chat or it’s face-to-face in a bank branch, you can find a bank that offers it.
Massachusetts has banks to fit every preference. You’ll just need to shop around to find the right bank for you. If you already have a bank, make sure you check out the competition occasionally. You may find switching accounts can save you money while also boosting the interest rates you’re earning on your balance.
Chime is a financial technology company, not a bank. Banking services and debit card provided by The Bancorp Bank N.A. or Stride Bank, N.A.; Members FDIC. Credit Builder card issued by Stride Bank, N.A.
1. Out-of-network ATM withdrawal fees may apply with Chime except at MoneyPass ATMs in a 7-Eleven, or any Allpoint or Visa Plus Alliance ATM.
2. Early access to direct deposit funds depends on the timing of the submission of the payment file from the payer. Chime generally make these funds available on the day the payment file is received, which may be up to 2 days earlier than the scheduled payment date.
3. The Annual Percentage Yield (“APY”) for the Chime Savings Account is variable and may change at any time. The disclosed APY is accurate as of November, 17th, 2022. No minimum balance required. Must have $0.01 in savings to earn interest.
5. Chime SpotMe is an optional, no fee service that requires a single deposit of $200 or more in qualifying direct deposits to the Chime Checking Account each month. All qualifying members will be allowed to overdraw their account up to $20 on debit card purchases and cash withdrawals initially, but may be later eligible for a higher limit of up to $200 or more based on member’s Chime Account history, direct deposit frequency and amount, spending activity and other risk-based factors. Your limit will be displayed to you within the Chime mobile app. You will receive notice of any changes to your limit. Your limit may change at any time, at Chime’s discretion. Although there are no overdraft fees, there may be out-of-network or third party fees associated with ATM transactions. SpotMe won’t cover non-debit card transactions, including ACH transfers, Pay Anyone transfers, or Chime Checkbook transactions. See Terms and Conditions.
Today we’ll check out newcomer “Revolution Mortgage,” which is looking to shake up the home loan business by creating a “collaborative and meaningful consumer lending experience.”
Their ultimate goal is to become the most consumer-friendly brand in the mortgage space, something they believe can be achieved by being authentic, kind, different, relevant, and simply doing the right thing.
So far, their customer reviews have been stellar, which tells me they’re doing something right and could be well on their way to reaching that ambitious goal of theirs.
Revolution Mortgage Fast Facts
Direct mortgage lender that offers home purchase loans and refinances
A DBA of parent company T2 Financial, LLC
Founded in 2019, headquartered in Westerville, Ohio
Has 33 branch locations nationwide and employs nearly 200 loan officers
Goal is to be the most consumer-friendly mortgage brand in the country
Revolution Mortgage is a direct-to-consumer retail mortgage lender, which means they work with borrowers directly both in-person at branches and remotely online.
They offer home purchase loans and refinance loans, with the former probably their specialty as HMDA data shows their parent company T2 Financial, LLC had a 75% purchase loan share in 2019.
But they also offer rate and term refinances and cash out refinances to existing homeowners, so they’re happy to serve both first-timers and long-time homeowners.
At the moment, Revolution Mortgage is licensed in 20 states, including Arizona, California, Colorado, Florida, Illinois, Indiana, Kentucky, Maryland, Michigan, Minnesota, North Carolina, Ohio, Pennsylvania, South Carolina, Tennessee, Texas, Virginia, Washington, West Virginia, and Wisconsin.
The company also has 33 physical locations sprinkled across the United States, with some branches as far west as Colorado. So if you like to do business in-person, they could be a good fit.
How to Apply with Revolution Mortgage
You can apply online, over the phone, via their smartphone app, or even at a branch
They offer a digital mortgage application that lets you complete most tasks electronically
Borrowers can securely scan/upload documents and eSign disclosures from a smartphone device
And message their loan officer instantly whenever they have questions or want status updates
One plus to using Revolution Mortgage is the ability to apply for a mortgage in just about every way imaginable.
It’s possible to start your application online on your own, via their mobile app, over the phone, or in-person. So no matter your approach, there’s an option that will fit your unique personality.
To get started, you can visit their website and click on Apply, at which point you’ll be prompted to fill out a short lead form with your contact information.
Alternatively, you can call them directly or browse their online loan officer directory to find someone specific to work with.
Once you do, it’s possible to apply directly from their website, or you can download their free smartphone app and go about it that way.
Those who dare can also visit a local Revolution Mortgage branch and apply for a mortgage in-person.
Regardless of how you apply, you’ll be able to manage your loan via the online borrower portal or the app, and perform most tasks paperlessly.
You can also message your loan officer instantly whenever you have questions, and opt in to status updates to stay on top of your loan progress.
To sum it up, you have pretty much every option under the sun to apply, and you get to take advantage of the latest mortgage technology available.
Loan Programs Available at Revolution Mortgage
Home purchase loans
Refinance loans: rate and term and cash out
Home renovation loans
Conforming loans
Jumbo loans
FHA loans
VA loans
USDA loans
Fixed-rate mortgages and ARMs available in a variety of loan terms
While Revolution Mortgage doesn’t appear to have any unique loan programs, they do seem to have all the basic offerings most borrowers seek.
This includes home purchase loans, refinance loans, and home renovation loans, which are available on all major property types and occupancy types.
You can get a conforming loan backed by Fannie/Freddie, or a jumbo home loan if your loan amount exceeds your county’s limit.
Additionally, they offer the full slate of government loan options, including FHA, VA, and USDA loans, which means it’s possible to get mortgage with no money down.
And while most borrowers will go with a 30-year fixed mortgage, they also offer the 15-year fixed and adjustable-rate mortgages such as the 7/1 ARM.
Ultimately, you should be able to find what you’re looking for unless you have a very unique loan scenario.
Revolution Mortgage Rates
One slight negative to Revolution Mortgage is the fact that they don’t publicize their mortgage interest rates on their website.
Some lenders do, some don’t, but it’s always nice to get a taste for pricing, even if it’s merely just a sample.
While they say they leverage technology to boost efficiencies and provide you with a lower rate, it’s unclear how low, and more importantly, how competitive it is compared to other lenders out there.
The only hint we have comes via Bankrate, where Revolution Mortgage tends to advertise its rates to the public.
At last glance, they had some of the lowest interest rate and mortgage point combinations on the platform, so they appear to be competitively priced.
Of course, loan scenarios can vary so you’ll need to get in touch with a Revolution Mortgage loan officer to obtain pricing first.
But from what I saw, the pricing is at least encouraging, and if the customer service is also stellar, it could be a good combo.
Lastly, be sure to inquire about lender fees to determine if they charge a loan origination fee, or fees for tasks like loan processing or underwriting.
Once you know all those details, you can effectively shop your loan by using the mortgage APR.
Revolution Mortgage Reviews
On Zillow, Revolution Mortgage has a very impressive 4.95-star rating out of a possible 5 from over 300 customer reviews, which is as close to perfection as you can get.
Many of the reviews indicated that both the interest rate and fees/closing costs were lower than expected, a good sign for those looking for a competitively-priced home loan.
Over at Google, they have a 4.7-star rating from about 270 reviews, and on Bankrate a 4.5-star rating from about 40 reviews.
They also have a perfect 5-star rating on LendingTree, albeit from just under 20 reviews. They also boast a 100% recommended score on LendingTree.
Lastly, they are an accredited business with the Better Business Bureau and currently have an ‘A’ rating based on customer complaint history.
In summary, Revolution Mortgage appears to be living up to their pledge to be the most consumer-friendly brand in the mortgage space, and if they also offer low rates, they could be a great choice for your home loan needs.
They provide a ton of different ways to apply, whether it’s online, in-person, or via their free smartphone app, so they should have an approach to suit all personality types.
Revolution Mortgage Pros and Cons
The Good Stuff
Offer a digital mortgage application process
Can apply in a variety of different ways including in-person
Lots of different home loan program to choose from
Excellent customer reviews across all ratings websites
An accredited business with an ‘A’ BBB rating
33 physical branch locations throughout the country
LendingHome, a marketplace lender that claims it’s “the best way for borrowers to get a mortgage,” announced this week that it funded more than $550 million in mortgage loans during 2015.
That represents a 600% increase from 2014 as marketplace lending continues to surge in popularity.
If you’re wondering just what the heck marketplace lending is, it’s essentially a setup where individuals obtain and invest in mortgages at the same time.
LendingHome refers to themselves as a “direct lender with a marketplace of investors who buy our loans.” They close the loans with their own funds and then offer them to investors via a secondary sale.
So Joe Investor backs a mortgage (via a fractional note) taken out by Jane Homeowner after LendingHome funds it. Institutional investors are also involved in the process.
To that end, some $200 million in principal and $20 million in interest has been doled out to investors in LendingHome mortgages.
LendingHome Mortgage Products: Fix & Flip or Primary Residence
If you’re a borrower seeking a mortgage, you have the ability to choose from either a “fix & flip” product or a standard owner-occupied mortgage.
Let’s talk about the first option first. Assuming you’re an investor, you get the ability to apply for a purchase or refinance loan on a rental property.
LendingHome will ask you a series of questions online about the property, including whether you’ve found it yet, and if an offer has been made.
As far as the loan goes, you have the ability to add rehab funds on top of the desired loan amount if you need to finance improvements before unloading it again. The loan term appears to be set at 12 months because it’s basically a bridge loan.
They ask the typical questions such as property value, loan-to-value, your estimated credit score, and your real estate experience. Specifically, they ask how many properties you’ve purchased in the past six and 12 months, the number you’ve purchased in your lifetime, and the average purchase price.
The product is available in Arizona, California, Colorado, Connecticut, Florida, Georgia, Illinois, Maryland, Michigan, Missouri, North Carolina, Nevada, New York, Ohio, Oregon, Pennsylvania, South Carolina, Tennessee, Texas, Virginia, Washington, and West Virginia at last glance.
LendingHome Rates Appear to Be Favorable
If you want to take out a mortgage on a primary residence you intend to occupy, it appears you can only do so in Nevada and Oregon at the moment, though I’m sure that list will grow soon enough.
I did a mock application to see what kind of rates you can get and they weren’t bad at all. For a 30-year fixed, the rate was advertised at 3.5% with no mortgage points. For a 15-year fixed, the rate was 2.75%, and for a 5/1 ARM it was 2.625%.
LendingHome’s rate estimates assume a $750 origination fee and a $400 escrow fee plus 0.07% of the loan amount. There’s also a smaller application fee.
For the record, I geared the quote toward a pristine borrower with excellent credit and a sizable down payment. When I inputted a 600 credit score it was deemed too low for financing.
However, a 620 credit score got me back in the game and rates were still low, with the 15-year fixed unchanged at 2.75% and the 30-year fixed a slightly higher 3.875%.
So a borrower with a low credit score may benefit from their forgiving pricing structure.
LendingHome aims to be speedy, with a three-minute rate quote, a 20-minute full application, and a closing date in just 10-14 days. In fact, they aim to close all loans in less than 2 weeks. That’s pretty fast!
The process is also done 100% online, with questions answered via online forms and documents uploaded via their website. You can also keep track of your loan progress via their customer portal and contact a human if you so wish.
If anything changes along the way, they may need to adjust your rate, but they’ll let you know if and when that happens.
For those who wind up getting denied, the company claims it will work with you to provide a creative counter-offer if at all possible.
Becoming a LendingHome Investor
If you want to invest in LendingHome mortgages, you need to be an accredited investor. This typically requires a six-figure income and assets north of $1 million. If that sounds like you, there’s an option to earn a healthy yield on mortgages.
Assuming you choose to invest, LendingHome’s marketplace requires a minimum opening balance of $50,000, with a minimum investment of $5,000. When you invest in one of the company’s mortgages, you can earn a “yield upwards of 10 percent on average.”
The company differentiates itself from other FinTech platforms by allowing investors to put their money behind secured loans backed by real estate, as opposed to unsecured loans offered through competing marketplace lenders like SoFi.
Once you choose a mortgage to invest in, you’ll receive a monthly payout of principal and interest when the borrower on the loan makes a payment.
And because you’re taking a fractional interest, you can diversify your mortgage holdings so you don’t just wind up with one sour loan.
Your money is basically locked up until the loan matures, which could be earlier than the actual loan term if the mortgage is prepaid.
Should You Apply for a Mortgage at LendingHome?
All in all, it appears that LendingHome is targeting a niche market that has either been shunned by traditional mortgage lenders, or simply doesn’t want to deal with them because of the many restrictions investors with lots of properties face.
While I don’t know what the mortgage rates are for the fix & flip loans, my assumption is that they’re going to be significantly higher than what you’d find with a conventional mortgage lender. I’ve heard something about rates being closer to say 7-10%, as opposed to the 6% rate you’d find on a traditional 30-year fixed issued by a large national bank, credit union, or mortgage banker.
However, companies like LendingHome (and Sindeo or Lenda) may offer more flexibility than the big mortgage players, which is probably why a borrower would seek them out in the first place.
As noted, their rates on owner-occupied loans are quite competitive, though they only appear to be offered in two states at the moment. You may also be able to gain approval even if the loan doesn’t fit the Qualified Mortgage rule.
What’s great is how simple the process appears to be. Their automated system even recognizes and removes documentation requirements that a traditional mortgage provider would ask for but isn’t needed for your loan. They’re all about speed and convenience, something Millennials seem to be pretty fond of.
If they can compete on price and keep closing costs low (via technology), they should be a viable alternative to the standard big bank approach, even if you’re a vanilla borrower.
On December 8th, 2016, LendingHome announced that it had surpassed $1 billion in mortgage loan originations.
In late August 2018, the company said it had surpassed $3 billion in origination volume, with the third billion lent out in a mere eight months, 33% quicker than the time it took to dole out the second billion and some 375% quicker than it took to originate the first billion in home loans.
If you love the finer things in life, dahling, naturally you want the poshest apartment you can find to match your luxurious lifestyle. Granite countertops, a doorman, tons of closet space, gorgeous views – these are all things you want in your life, and you won’t settle for anything less in your home.
If this sounds like you, then you definitely belong in one of these top 10 metros with the most luxury apartments on ApartmentGuide.com. Read on to find out where you can live in the lap of luxury.
Metro Area
Number of Luxury Communities
Number of Visits on AG
Los Angeles / Long Beach / Anaheim, CA
92
1807
Dallas / Fort Worth / Arlington, TX
90
1766
Washington, DC / Arlington, VA / Alexandria, VA
85
703
Philadelphia, PA / Camden, NJ / Wilmington, DE
83
604
New York, NY / Newark, NJ / Jersey City, NJ
75
132
Atlanta / Sandy Springs / Marietta, GA
70
661
Chicago / Naperville / Joliet, IL
66
1249
Houston / Sugar Land / Baytown, TX
62
90
Detroit / Warren / Livonia, MI
56
8
Baltimore / Towson, MD
52
727
Untapped Luxury
Along with identifying the metros with the most luxury apartments listed on the site, Apartment Guide also determined the number of web visits the luxury community listings in those metros received between April 14 and July 14, 2014.
Surprisingly, over this three-month period, the 56 luxury communities in the Detroit metro area only received eight visits on Apartment Guide. Renters in the Houston metro area also are passing up the luxury options – luxury communities that area only received 90 visits on the site in the time period studied. Think of all those fabulous amenities that are going unused!
On the other hand, renters in the Northeast really have their pick of luxury places — the Washington, DC, Baltimore, Philadelphia and New York metro areas all made the list for having the most number of luxury apartments. But East Coasters are far surpassed by the Los Angeles and Dallas / Fort Worth metro areas for the number of renters interested in these homes. Carry on, you fabulous people.
Read more on the Apartment Guide Blog:
Methodology
Apartment Guide identified which CBSAs (core-based statistical areas, also known as a metro area) have the most apartment communities that have classified themselves as luxury communities on the site. Visits to these communities reflect the total number of website visits received by these luxury communities between April 14 and July 14, 2014.