Kristen Chapman, 52, doesn’t know anyone in Virginia. She doesn’t have a job lined up or a home there. But this summer, the Tennessee mother of three will uproot her family from Nashville and move 600 miles away to Richmond, VA, so that her transgender daughter can continue receiving the gender-affirming care that Chapman believes has saved her child’s life.
In March, Tennessee banned gender-affirming care for transgender minors.
“My youngest child cannot get care here legally. I no longer feel welcome here. I no longer feel safe here,” says Chapman, a social worker and artist, who identifies as queer. “I literally feel targeted, like someone painted a big X on our door and we have to get out.”
Chapman is part of a growing number of lesbian, gay, bisexual, transgender, and queer people and their families fleeing neighborhoods, cities, and states where they are worried about their safety. Some have faced harassment as anti-LGBTQ+ rhetoric has spread throughout the country. Others are desperate parents of children whose gender-affirming health care has been outlawed by their state governments. Most are relocating to blue and purple cities and states, where housing costs are often much higher but they feel welcomed.
Since June 5 of this year, more than 525 anti-LGBTQ+ bills have been introduced in 41 states, creating a new record, according to the Human Rights Campaign. More than 220 of those bills targeted transgender individuals with at least 20 states now banning gender-affirming care. More than 76 bills have become law, more than double last year, according to the HRC.
While there are no official estimates of how many LGBTQ+ people and families are relocating, it’s a growing number, says Anita R. Blue, a Realtor® in Houston and president-elect of the LGBTQ+ Real Estate Alliance. It’s an issue that’s increasingly spilling over into the housing market.
“Housing’s going to suffer,” says Blue. “People don’t want to live or buy a home in a state where they don’t feel safe.”
In 2020, several months into the COVID-19 pandemic, Chapman received a three-word email from her daughter. It said, “I am trans.”
What followed was about a year of doctor’s visits, tests, and mental health evaluations before her child, now 15, began receiving puberty blockers.
Chapman explains that her child was suicidal before receiving treatment. Now, if her daughter misses a treatment, she will go through puberty—as a boy.
“If I don’t get her to a state in August where she can receive a shot, then she literally could resume puberty immediately. Her voice could drop, and there’s no fixing that,” says Chapman. “The more she passes as a [cisgender woman], the safer she is. That was our big motivation to move quickly.”
She chose Richmond because she hopes that her husband, whom she is separated from, will be able to transfer his job to one of his company’s offices there to be close to their 15-year-old and 17-year-old autistic daughter. Their oldest is away at college. Chapman started a GoFundMe campaign to help pay for moving costs.
“I’m really angry. But the overwhelming feeling is I’m just heartbroken,” Chapman says through tears. “I’m exhausted, and I’m scared for my family. At this point, my children deserve to feel some peace and stability.”
Dallas-area real estate broker Bob McCranie has helped 27 clients worried about anti-LGBTQ+ harassment and legislation move out of Texas. Most are going to blue states, such as Illinois, Connecticut, Massachusetts, and Colorado, or even abroad.
Last year, he started FleeTexas.com, which was followed by FleeRedStates.com. The sites help connect homebuyers and sellers to LGBTQ+ real estate agents.
“There’s a migration going on right now,” says McCranie. “We’re trying to get people out of harm’s way and to a place that’s a little bit safer.”
But moving, especially cross-country, takes money.
Those leaving red states might find that home and rental prices, as well as everything else, are much higher in blue states. Transplants are often leaving behind their support networks and essentially starting over.
Callen Jones, a Realtor® with the Dalton Wade Real Estate Group and who is based in Tampa, FL, has seen many people leave Florida due to the state’s anti-LGBTQ+ laws. This spring Jones, who identifies as transgender, helped four people sell their homes. Jones’ clients, who were self-employed or worked remotely, relocated to the Midwest and Northeast.
Last year, Florida made headlines for banning classroom instruction on sexual orientation and gender identity in public schools for kindergarten through third grade. The law, which has since been expanded to higher grades, resulted in a teacher being investigated for showing her fifth-grade class the Disney movie “Strange World,” which has a gay character.
In May, Florida Gov. and Republican presidential candidate Ron DeSantis signed into law legislation to restrict gender-affirming health care for transgender minors. The law also allows children who undergo treatment to be placed in the state’s temporary custody.
“A lot of our folks who are openly LGBTQ and their parents are fearful,” says Jones. “Home is so vastly important to everyone, the ability to have a home and feel safe and feel settled. If you don’t feel safe, secure, and affirmed, you’re not going to be your best self.”
Nicole, who did not want to be fully identified, moved from the Fort Worth, TX, area to Denver with her husband and 14-year-old twin boys in mid-November.
One of their twins came out as bisexual in 2019 and then as transgender a year later. He began gender-affirming health care six months later.
In February of last year, Texas Gov. Greg Abbott directed the state’s Department of Family and Protective Services to investigate parents of transgender children receiving gender-affirming care. The order was successfully challenged in the courts but is now being appealed. On Sept. 1, it will become illegal for doctors in the state to provide gender-affirming care to those under 18.
“It was urgent that we needed to leave,” says Nicole. “The thought of both of [our kids] being taken from us because we support gender-affirming care was terrifying.”
She was advised to create a “safe” folder for affidavits from people who knew the family and could testify they were good parents. Their children were advised not to answer questions from adults they didn’t know unless Nicole and her husband were present.
“I couldn’t in good conscience stay any longer,” says Nicole.
The family chose Denver, despite not having family or friends there. They had searched online for LGBTQ+-friendly places, and Colorado kept coming up.
Their three-bedroom, two-bathroom house, which they purchased in 2019, took five months to sell. They barely broke even. In November, they moved into a rental house in Denver, which was considerably more expensive.
Nicole, who is a mortgage lender, was able to continue working remotely. Her husband is retired from the Air Force. Most importantly, their son is able to continue with his treatment.
“We didn’t realize how we were living down in Texas until we got up here. This massive weight was lifted, and the fear was gone,” she says. “We feel like we can take a deep breath.”
Today let’s talk about PrimeLending, a PlainsCapital Company, which is a top-10 mortgage lender that does business in all 50 states.
Perhaps their biggest claim to fame is their 96% customer satisfaction rating given to their fleet of 1,500 loan officers.
They certainly seem to pride themselves on making their customers happy, with the slogan “Home Loans Made Simple.”
They also have a mascot named “Mo,” short for momentum, that is a real live buffalo living near Fort Worth, TX.
Let’s learn more about who they, what types of loans they offer, and why you might use them on your next purchase or refinance transaction.
Who Is PrimeLending?
A direct-to-consumer mortgage lender owned by the PlainsCapital Company that has been around since 1986
A wholly owned subsidiary of PlainsCapital Bank (that is also a wholly owned subsidiary of Hilltop Holdings Inc.)
Publicly traded under the symbol (NYSE: HTH)
Funded more than $22 billion in home loans during 2021
Most active in the states of California and Texas but licensed nationwide
First a little bit about their history – PrimeLending started out back in 1986, which if you’re good at math, is just over 35 years. Back then, they had just 20 employees.
Today, they’ve got more than 3,000 employees throughout the nation. And since that time, they’ve apparently helped more than 500,000 Americans purchase a home, fix up a property, or refinance an existing mortgage.
They seem to excel in home purchase lending, as evidenced by the fact that they’ve been a top-10 purchase lender from 2012 to 2017, per data from Marketrac, a CoreLogic company.
They’re also ranked 6th for retail home loan volume by Scotsman Guide, and 11th in volume overall. It’s unclear if that’s overall or a specific category of lender.
If you’re curious who owns them, they’re a PlainsCapital Company that is also a wholly owned subsidiary of PlainsCapital Bank, which is owned by Hilltop Holdings Inc.
Confused yet? Yeah, there’s a lot of corporate structuring going on, but basically their a billion-dollar financial holdings company based out of Dallas, Texas with thousands of employees.
Hilltop actually acquired PlainsCapital and PrimeLending as recently as November 2012.
In late 2022, PrimeLending launched a joint venture with Texas home builder Kindred Homes called Kindred Home Loans.
PrimeLending will provide financing to home buyers in Kindred Homes’ communities in the state of Texas.
Applying for a Mortgage with PrimeLending
They are a consumer direct lender with no middlemen
You get connected with one of their loan officers nearby
And can apply online, by phone, or in-person
Their digital, mostly paperless home loan process is known as Loanplicity
The company relies on a network of mortgage loan officers throughout all 50 states to help borrowers apply for a mortgage.
If you’ve already made contact with a loan officer, you enter their name on the PrimeLending website and it’ll populate a list. Once selected, they become your point of contact.
If you don’t yet have an assigned loan officer, you can enter your zip code or city and choose one near you.
The website will list a variety of locations near you (assuming you live next to a lot of PrimeLending offices). Then you can then see all the loan officers at that branch and choose one based really on name only.
While the loan officers have their own mini websites, they don’t seem to feature any unique qualities, other than contact information, which I feel would make them stand out more.
They could show their strengths and specialties, but at the moment they seem to have boilerplate content that doesn’t differ from one loan officer to the next.
Anyway, from there you’d just hit the “apply now” button or you could call their direct phone line to get the home loan process underway.
You can also apply in person if that’s your thing, though most folks these days like to do things remotely.
Loanplicity Is Their Digital Home Loan Process
They just launched their digital mortgage offering known as Loanplicity
Allows you to apply online or get pre-qualified using their award-winning application process
You can connect financial accounts or upload documents using your smartphone
Also lets you pay fees using PayPal or connect to a loan officer at any time if you need help
In February 2020, PrimeLending launched its version of a digital mortgage known as Loanplicity.
It allows you to apply online with their “award winning application process,” or get pre-qualified to determine how much home you can afford.
Once you submit your loan, you can securely connect financial accounts or take photographs of documents with your smartphone for upload.
They also let you pay fees along the way via PayPal, perhaps for things like an appraisal or application fee (deposit).
At any point during the process, you can also call, text, or email your loan officer for assistance.
And you can see loan status in real-time to determine where you’re at in the loan process.
The one negative at the moment is there doesn’t seem to be a mobile app available.
If you’re a prospective home buyer, their PrimeLending Approval AdvantEDGE will allow you to see how much home you can afford.
What PrimeLending Offers to Its Customers
Home purchase loans and refinance loans
Home improvement and renovation loans
New construction loans
Conforming and jumbo loan amounts
Government loans including VA, FHA, and USDA loans
Fixed-rate and adjustable-rate options available
Reverse mortgages
In the fixed-rate department, they advertise both the 30-year and 15-year fixed, which are by far the most popular. It’s unclear if they offer other terms in between and beyond.
For ARMs, they discuss the 3/1, 5/1, 7/1, 10/1, which happen to be the most popular ARM offerings available. All are hybrids with a fixed period followed by an adjustable period.
They’ve got the usual conforming stuff backed by Fannie Mae and Freddie Mac, along with a variety of government loans like FHA, VA, and USDA.
PrimeLending also advertises an FHA cash-out refinance, which is a little less usual.
When it comes to jumbos, they offer LTVs as high as 95% with both fixed-rate and adjustable-rate options.
The company seems to have the new construction and renovation market well covered, with lots of offerings including an FHA 203k loan, lot loans, HUD REO and USDA with repair escrow, Fannie Mae HomeStyle, and jumbo renovation loans.
In April 2023, they announced the availability of reverse mortgages via the FHA’s home equity conversion mortgage (HECM) program.
PrimeLending Mortgage Rates
They don’t advertise their interest rates online
Nor can I find a ratesheet to get more information on their pricing
So if/when you get a quote from PrimeLending
You may also want to comparison shop with other lenders to see where they stand
Sadly, the company doesn’t openly advertise their mortgage rates, so it’s impossible to know if they’re good, bad, or just plain average.
I prefer companies that advertise their rates, though you can argue that they aren’t all that meaningful because rates can vary tremendously from borrower to borrower at the same company.
However, it does mean that if you apply with PrimeLending, you may want to shop your rate with other lenders to see where you stand.
And to determine if you can do better elsewhere, assuming you are interest rate-sensitive, which you generally should be.
Of course, many mortgage borrowers choose lenders for things other than the lowest rate, so it may not be super important to you.
The ability to actually close your loan on time can be just as important, if not more so.
PrimeLending Reviews
Now let’s talk about customer reviews, for which PrimeLending has a ton.
On Zillow, the company has a 4.99/5 rating from over 21,000 customer reviews. That’s near perfection and doubly amazing given the sample size.
Over at LendingTree, they’ve got a slightly less good 4.3/5 from about 1,000 reviews, along with a 93% recommended rating.
They are an accredited business with the Better Business Bureau (BBB) and currently hold an ‘A+’ rating based on complaint history.
If you search individual brick-and-mortar locations near you, they also tend to have very good Google reviews.
Why Choose PrimeLending for Your Mortgage Needs?
They are big on customer satisfaction and survey every customer after their loan closes
Some 40% of customers actually complete the surveys vs. the industry average 10-15%
Their 96% approval rating outperforms the usual 89% average seen with other lenders
The company also seems to keep things simple and stress-free
Have a digital loan process known as Loanplicity
Licensed to do business in all 50 states
While they used to lack some of the eye-catching technology other companies offer, such as Rocket Mortgage from Quicken Loans, their digital mortgage solution known as Loanplicity is now live.
And they seem to excel in customer satisfaction as well, meaning PrimeLending could be a good fit no matter how you apply.
For those who might favor a personal touch, as opposed to speaking to no one and just using a smartphone app to get through it, they could be the right choice.
Perhaps you need more guidance to make your loan decision, or simply like having someone on call to help you along the way.
As noted, their slogan is “Home Loans Made Simple,” meaning the process should be an easy one despite any obvious technology claims.
They also have a wide range of lending products to choose from to suit most borrowers in lots of different situations.
Now a couple of negatives. PrimeLending doesn’t offer a mobile app, nor do they make applying for a home loan as easy as I’d like.
Something as simple as an “Apply Now” button on their homepage could change that, as opposed to only their “Connect with a Loan Expert” button.
They also kind of lack that special quality that differentiates themselves from other lenders, so it’s unclear why a consumer would seek them out versus another bank for their mortgage needs unless pricing is unbeatable.
Academy Mortgage recently celebrated its 30th anniversary, having been founded back in 1988.
It began as a humble family-owned company opened by Duane Shaw, and remains one today with his son-in-law Adam Kessler in charge, serving as CEO.
With three decades under its belt, it’s clear Academy is a mature player in the mortgage space, which now includes all types of fintech-focused newcomers like Better Mortgage and Movement Mortgage.
It’s a very competitive business, so those who are able to stick out it for so long have proven staying power if nothing else. They must be doing something right, right? Let’s find out.
Academy Mortgage Prides Itself on Doing Everything In-House
They are an independent direct mortgage lender based in Utah
That only operates via the retail direct-to-consumer channel
Licensed to do business in 49 states and DC (not licensed in NY)
Have over 260+ branch offices nationwide
The Draper, Utah-based company’s claim to fame is that it’s a direct lender “100% focused on retail mortgage banking.”
What it means is they only work with borrowers directly, instead of dabbling in the correspondent or wholesale channels. So they’re laser-focused on the customer.
Perhaps this is how they were able to navigate through the mortgage crisis that occurred in the early 2000s, only to grow bigger and stronger since then.
Additionally, they do all the loan underwriting, processing, and funding in-house, instead of having a fragmented sales and operations team offsite.
Everything is carried out in one of their 260 branch offices throughout the country. Speaking of, they’re licensed to do business in 49 states and Washington D.C.
Some of those branches were the result of their acquisition of Republic Mortgage back in 2014, which allowed them to grow to 200 branches and 2,100 employees.
In 2017, they also acquired Oklahoma-based First Mortgage Co., which operated many branches in the Southwestern United States and Texas.
They also pride themselves on quick turn times, and refer to themselves as the “Gold Standard” in loan origination.
So it’s obvious that customer satisfaction reigns supreme with the company.
Getting a Home Loan with Academy Mortgage
The company employs hundreds of loan officers nationwide
You can call them directly to get paired up with an employee
Or visit their website and use their online directory to choose someone specific
It’s also possible to visit one of their many branches if you prefer face-to-face interaction
The company employs thousands of individuals, including a large fleet of mortgage loan officers throughout the country.
If and when you apply for a home loan with Academy, you can call them directly or choose a specific loan officer to work with.
They have a loan officer directory on their website that allows you to search by zip code, by name, and by branch (city and state location).
I imagine many of the loan officers are referred to clients, either by a real estate agent, or by a former customer who had a good experience with the company.
You can also visit a branch if face-to-face is your thing, though these days folks seem more interested in using a smartphone to make contact.
The one downside here is it appears that you can’t apply for a mortgage online.
Academy Mortgage a Top-40 Mortgage Lender
They’re a top-40 mortgage lender nationwide
The company closed more than 35,000 mortgages in 2019
The majority of those loans were for home purchases (about 70%)
With the remainder tied to home refinance transactions and HELOCs
Based on the latest HMDA data, Academy Mortgage was the 37th largest mortgage lender overall in the nation based on total loan volume in 2019.
The company closed 35,000 residential mortgages throughout the year on nearly $9.5 billion in total loan volume.
While that’s fairly big, it pales in comparison to Quicken Loans, which mustered over $81 billion during the same time period. However, it shows they’re no slouch either.
For home purchase loans, they tend to rank in the top 20 nationally since a large share of their mortgages are for that purpose.
For home refinance loans, they rank quite a bit lower due to lower volumes, but they’ve still got plenty of options for borrowers either way.
But it is clear that the independent home loan lender focuses heavily on home purchases as opposed to refinances, likely partnering up with local real estate agents to generate business.
Academy Mortgage Interest Rates
They don’t disclose their mortgage rates on their website
So it’s impossible to know where they stand without getting a quote first
My guess is their rates are average relative to other mortgage lenders
If super low they’d probably openly advertise them to draw in business
Unfortunately, the company doesn’t advertise their mortgage interest rates anywhere online. So it’s impossible to know how competitive they are pricing-wise.
If we consider the fact that most of their loan volume comes from purchases as opposed to refinances, we could guess that their mortgage rates probably aren’t super competitive.
Or at least not necessarily lower than the competition. After all, if they had the lowest price out there they’d probably want to advertise it, or at minimum make it known somewhere.
My guess is their rates are run-of-the-mill, but again, that’s just speculation.
If you do include Academy in your mortgage loan search, be sure to compare rates and closing costs to other lenders to see where they stand.
What Academy Mortgage Offers
The company offers a variety of home purchase and refinance solutions
Including conventional, jumbo, FHA, VA, and USDA options
You can get any number of fixed or adjustable-rate products
And even a zero down home loan via their exclusive GSFA Platinum Program
The company calls itself a “top-tier lender” when it comes to purchase loans, FHA loans, and builder loans.
This includes home purchase loans, refinance loans, renovation loans, and streamline refinance options.
You can get the basic Fannie Mae and Freddie Mac-backed conventional loans that allow for down payment as low as 3%.
They come in a variety of fixed-rate options, including 30-year, 25-year, 20-year, 15-year, and 10-year terms. That’s typically more choices than most lenders offer.
Academy also offers the usual adjustable-rate mortgage options, including a 10/1 ARM, 7/1 ARM, 5/1 ARM, and 3/1 ARM.
If you’re interested in a government home loan, they offer all the usual suspects including FHA loans, VA loans, and USDA loans, including FHA 203k renovation loans and FHA Energy-Efficient Mortgages.
It’s also possible to get a zero down home loan if you’re a first-time home buyer via their so-called exclusive GSFA Platinum Program, which includes a grant for up to 5% of the loan amount to cover down payment and closing costs.
The grant funds, which are provided by the Golden State Finance Authority, aren’t required to be paid back if certain conditions are met.
Lastly, they offer jumbo home loans up to $1.5 million loan amounts, with down payment requirements as low as 10%.
You may also be able to avoid PMI even when putting just 10% down!
Academy Mortgage Also Offers Commercial Loans
While they only operate a retail channel for residential mortgages
They do have a commercial lending division as well
It offers a very wide range of commercial and small business loans for commercial and multi-family properties
It should be pointed out that the company also offers commercial loans via a separate lending division.
Their offerings range from life insurance company loan programs to Fannie Mae and Freddie Mac programs for apartment buyers.
They also offer conduit loans and conventional loan programs for those wishing to purchase a commercial property.
Additionally, they offer multi-family loan programs, including those backed by the FHA/HUD, along with construction and bridge loans.
Lastly, you can get your hands on a variety of Small Business Administration (SBA) loans, including the SBA 7(a) Program and the SBA 504 Program.
So the appear to have you well covered if you need a commercial loan for just about any purpose.
The Verdict on Academy Mortgage
What they appear to lack in technology might be more than made up for by their excellent customer service
They have a near-five star rating on Zillow (4.96 out of 5 at last glance)
Which is even more impressive based on the many reviews completed (nearly 25,000!)
So if you want a great home loan experience they might be a great fit
While they seem to be a good lender on paper, with both high marks on customer service and awards for being a great place to work, we don’t know much about their rates and fees.
For those interested in securing the lowest-cost mortgage, some more digging and comparing will be necessary to see if they’re the right choice.
Academy doesn’t highlight any technology either, which seems to be a major factor these days for a lot of consumers.
There’s no mention of a digital or paperless process, a smartphone app, or anything really on that front. That’s not to say it doesn’t exist, but chances are if it did, it’d be emphasized.
But they’re a top-20 home purchase loan lender, which that says something, especially since they don’t seem to advertise very much.
Perhaps the service speaks for itself, and they receive a lot of referrals from past customers and real estate agents.
They have an excellent rating on Zillow, with 4.96 stars out of 5 on nearly 25,000 reviews at last glance.
Mortgage applications decreased 4% for the week ending July 16, just one week after applications jumped 16% on the strength of falling mortgage rates.
The 10-year Treasury yield dropped sharply last week, in part due to investors becoming more concerned about the spread of COVID variants and their impact on global economic growth, according to the latest survey from the Mortgage Bankers Association. This, in turn, led to mixed changes in mortgage rates.
“The 30-year fixed rate increased slightly to 3.11% after two weeks of declines, and other surveyed rates moved lower, with the 15-year fixed rate loan — used by around 20% of refinance borrowers — decreasing to 2.46%,” said Joel Kan, MBA’s associate vice president of economic and industry forecasting. “That’s the lowest level since January 2021.”
Kan added that, on a seasonally adjusted basis compared to the July 4th holiday week, purchase applications dipped back to near their lowest levels since May 2020.
“Limited inventory and higher prices are keeping some prospective homebuyers out of the market,” Kan said. “Refinance activity fell over the week, but because rates have stayed relatively low, the pace of applications was close to its highest level since early May 2021.”
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The refinance share of activity of total mortgage applications increased to 64.9% from 64.1% the previous week. On an unadjusted basis, the market composite index decreased 4% compared with the previous week. The seasonally adjusted purchase index decreased 6% from one week earlier, as well.
The FHA share of total mortgage applications increased to 9.6% from 9.5% the week prior, and the VA share of total mortgage applications increased to 10.5% from 10.3%.
Here is a more detailed breakdown of this week’s mortgage applications data:
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($548,250 or less) increased to 3.11% from 3.09%
The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $548,250) decreased to 3.13% from 3.16%
The average contract interest rate for 30-year fixed-rate mortgages decreased to 3.08% from 3.15%
The average contract interest rate for 15-year fixed-rate mortgages also decreased to 2.46% from 2.48%
The average contract interest rate for 5/1 ARMs increased to 2.72% from 3.02%, with points decreasing to 0.19 (including the origination fee) for 80% LTV loans
An online lender called “Owning” is looking to shake up the mortgage industry with what it refers to as “ridiculously low rates.”
In the past, they doubled as a mortgage lender and real estate company, offering mortgage refinancing at low rates and a variety of home buying and selling tools including iBuying.
But in early 2021, Owning was acquired by Chicago-based Guaranteed Rate, and will act as its lead generator going forward.
The company now focuses on helping aspiring home buyers finance a property and existing homeowners interested in securing a lower rate on their home loan.
Aside from attempting to make the process easier via new technology, they also offer an on-time closing guarantee. Read on to learn more.
Owning Fast Facts
Direct-to-consumer mortgage lender offering home purchase loans and refinances
Founded in 2018, headquartered in Orange, California
Acquired by Guaranteed Rate in early 2021
Licensed to lend in 43 states and the District of Columbia
Specialize in low-rate mortgage refinances and home purchases
BBB accredited with an ‘A+’ rating at the moment
4.9-star rating on Google based on over 2,100 customer reviews
Not available in Alaska, Kentucky, Nevada, New York, Rhode Island, Utah, or Vermont
What Owning Offers
Home purchase loans
Refinance loans (rate and term and cash out)
Conventional loans backed by Fannie Mae and Freddie Mac
Jumbo loans that exceed the conforming limit
FHA/VA/USDA loans
Fixed-rate and adjustable-rate options
Lend on primary, second, and investment properties
The Orange, CA-based company offers two core products to consumers looking for a home loan.
A refinance product for existing homeowners. And a home purchase product for those looking to purchase a property.
In the past, they offered more, including a no cost refinance, a zero-down home purchase, an iBuyer service, and a real estate agent rebate.
But since being acquired by Guaranteed Rate in 2021, they essentially became the online lead generator for their parent company.
This means keeping things simple, leading with their mortgage rates, and leaning on the latest technology to do things quickly and efficiently.
It’s unclear if Owning will still refinance your existing home loan with no closing costs, including third-party fees like appraisal, credit report, escrow, title insurance, and more.
That offering was similar to CashCall’s No Closing Cost Mortgage and the companies appeared to compete in the SoCal market.
But nowadays many lenders require borrowers to pay discount points to keep interest rates at reasonable levels.
Anyway, my guess is you can utilize a lender credit to keep closing costs down if that’s your desire.
Owning Mortgage Rates
As noted, Owning has become a streamlined, online-only mortgage lender. This means they offer a fully-digital process and in their words, “low rates.”
But you don’t have to take their word for it. If you visit their website, you’ll see their mortgage rates front and center at the top of the page.
They also have a calculator that lets you adjust a couple inputs to generate a real-time quote.
Both a 30-year fixed and 15-year fixed are listed as options, though other loan types may also be available depending on market conditions.
If you click on “rates,” you can access the more robust version of their online rate calculator.
Be sure to click on the loan assumptions to see what they’re basing rates on, e.g. purchase price, down payment, FICO score, discount points required, etc.
How to Apply
To get started, simply visit their website from your computer or smartphone. From there, you can use their rate calculator to determine today’s rates.
Or you can click on “get started” to fill out a short online lead form. You’ll also see a phone number and email address if you want to reach out directly.
Once you move forward, their loan process is mostly paperless. It allows for the e-signing of disclosures, importing bank account information, and uploading documentation.
All in all, they appear to make it easy to apply for a home loan. And they aim to close in as few as 14 days.
On Time Closing Guarantee
If you’re concerned about timing, take comfort in Owning’s On Time Closing Guarantee.
Simply put, if your loan does not close by the original specified closing date (purchase or refinance) the company will mail a check for $2,000 within 90 days of the request being submitted.
Eligible borrowers must request a refund check in the mail by submitting a request to [email protected] within 30 calendar days of loan closing.
However, there a lot of exclusions. The borrower’s down payment must be 5%+, it can’t be a USDA loan, and the borrower can’t own two or more properties.
It’s unclear if that total includes the subject property. And of course the standard exclusions apply like appraisal delays, force majeure events, and so on.
Be sure to speak to your loan officer ahead of time to iron out these details.
Owning Reviews
On Google, Owning has a stellar 4.9/5-star rating from over 2,100 customer reviews at last count (March 2023).
Over at Zillow, they’ve got a 4.80/5 from about 265 reviews, and at Bankrate a 4.9/5 from roughly 40 reviews.
They aren’t Better Business Bureau (BBB) accredited, but they do hold an ‘A+’ rating based on customer complaints.
And they have a solid 4.81/5 rating from nearly 100 customer reviews on the BBB website, which is pretty impressive.
To sum things up, this streamlined, no-frills online lender offers the basics that most consumers are probably looking for.
A possible negative might be a lack of physical locations, but for those savvy enough to go the online route, they could be a breath of fresh air.
Assuming their mortgage rates are competitive, they could be a good option for those refinancing or even a prospective home buyer.
Just be sure to take the time to compare Owning to other companies to ensure you get the best deal and quality service.
Owning Pros and Cons
The Good
Advertise their mortgage rates online
Offer a fully-digital home loan process
Can apply online or via smartphone
Plenty of loan programs to choose from
Excellent customer reviews
A+ BBB rating
On-time closing guarantee
Staff also speak Spanish and Vietnamese
The Maybe Not
Aren’t licensed in Alaska, Kentucky, Nevada, New York, Rhode Island, Utah, or Vermont
Mortgage refinancing gives homeowners flexibility as their financial circumstances and needs change.
When you refinance your mortgage, you may be able to lock in a lower interest rate and get rid of private mortgage insurance, which can lead to significant savings over the life of the loan. It also allows you to switch from an adjustable-rate mortgage to a fixed-rate mortgage (and vice versa) or go from a government-backed loan to a conventional loan.
You can even shorten your loan terms by refinancing your mortgage, so you can pay off your loan even faster. Or, you can use refinancing to tap into the equity in your home to pay off debt, pay for a huge renovation or purchase another property.
CNBC Select evaluated home loan lenders based on the types of loans offered, customer support and minimum down payment amount, among others (see our methodology below).
The best mortgage refinance lenders
Best for cashing out full equity
Rocket Mortgage Refinance
Annual Percentage Rate (APR)
Apply online for personalized rates
Types of loans
Conventional loans, FHA loans, VA Interest Rate Reduction Refinance Loan (IRRRL) and jumbo loans
Fixed-rate Terms
8 – 29 years
Adjustable-rate Terms
Not disclosed
Credit needed
580 if opting for FHA loan refinance or VA IRRRL; 620 for a conventional loan refinance
Pros
Can use the loan to refinance a single-family home, second home or investment property, or condo
Can get pre-qualified in minutes
Rocket Mortgage app for easy access to your account
Allows borrowers to cash out 100% of their home’s equity
Cons
Doesn’t offer USDA loans, HELOCs, construction loans, or mortgages for mobile homes
Rocket Mortgage is a great option to consider if you’re looking to maximize the equity you can cash out of your home.
One of the advantages of refinancing is being able to tap into your home’s equity to pay for large expenses, like home improvements or a second property, or to consolidate debt. This is called a cash-out refinance. The total amount you’re able to borrow will depend on your home’s value and equity.
Most lenders only allow homeowners to cash out 80–90% of their home’s equity. But according to its website, Rocket Mortgage allows borrowers who are refinancing to cash out 100% of their equity, as long as they have a minimum FICO score of 620. This means you’ll have access to more cash when you refinance. Rocket Mortgage also offers a fast, online pre-approval process.
Best for no lender fees
Ally Home
Annual Percentage Rate (APR)
Apply online for personalized rates; fixed-rate and adjustable-rate mortgages included
Types of loans
Fixed-rate, adjustable-rate and jumbo loans available
Fixed-rate Terms
15 – 30 years
Adjustable-rate Terms
5/6 ARM, 7/6 ARM, 10/6 ARM
Credit needed
Not disclosed
Pros
Doesn’t charge lender fees (no application, origination, processing, or underwriting fees)
Provides custom quotes in just a few minutes with no impact to your credit score
Online support available
Existing Ally customers can receive a discount that gets applied to closing costs
Cash-out refinancing available
Cons
Doesn’t offer FHA loans, USDA loans, VA loans or HELOCs, however, Ally allows borrowers to refinance from an FHA, USDA, or VA loan to a conventional loan
Mortgage loans are not available in Hawaii, Nevada, New Hampshire, or New York
As with its home purchase loans, Ally Bank’s mortgage refinances don’t come with lender fees. In other words, borrowers won’t pay application, origination, processing, or underwriting fees. Keep in mind, however, that you’ll still have to pay other charges like title checks and appraisal fees. Still, cutting lender fees out of the equation still gives borrowers a chance to save some money on an already-expensive process.
Ally offers both fixed-rate and adjustable-rate loans in addition to jumbo loans for refinancing. While this lender doesn’t offer any FHA, VA, or USDA loans, borrowers who currently have these loan types and wish to refinance to a conventional loan may do so through Ally Bank.
Best for a no-frills lender
Better.com Mortgage Refinance
Annual Percentage Rate (APR)
Apply online for personalized rates
Types of loans
Conventional loan, FHA loan and jumbo loan
Fixed-rate Terms
15–30 years
Adjustable-rate Terms
Not disclosed
Credit needed
Not disclosed
Pros
No origination fee
No prepayment penalties for refinance
Receive a loan estimate in as little as 3 days
The Better Buying Guarantee provides up to $3,500 in lender paid credits to offset “covered fees,” which include: Lender’s Title Insurance Policy Fees; Owner’s Title Insurance Policy Fees; Appraisal Fees (includes second appraisal fee, appraisal re-inspection fee and appraisal recertification fee, if applicable); Flood Certification Fees; Credit Report Fees; and Other Settlement Fees (discount points are excluded)
Cons
Doesn’t offer VA loans or USDA loans
The Better Buying Guarantee is not available in Washington state
Better.com offers a straightforward refinance service with a few ways for borrowers to save money. This lender doesn’t charge any origination fees on the loan, and individuals who are refinancing their mortgage won’t be charged prepayment penalties for paying off the new loan early. Its pre-approval process can be completed in as little as three minutes and won’t impact your credit score.
This lender also offers a Better Buying Guarantee, which provides borrowers with up to $3,500 in lender-paid credits to offset “covered fees.” Those fees include: Lender’s Title Insurance Policy Fees; Owner’s Title Insurance Policy Fees; Appraisal Fees (includes second appraisal fee, appraisal re-inspection fee and appraisal recertification fee, if applicable); Flood Certification Fees; Credit Report Fees; and Other Settlement Fees (discount points are excluded). See their Terms and Conditions for rules around eligibility.
Better.com offers mortgage refinance terms that range from 15 to 30 years, and boasts the ability to provide potential borrowers with a loan estimate in as little as three days.
Best for saving money
SoFi Mortgage Refinance
Annual Percentage Rate (APR)
Apply online for personalized rates
Types of loans
Conventional loans and jumbo loans
Fixed-rate Terms
10 – 30 years
Adjustable-rate Terms
Not disclosed
Credit needed
Pros
Provides access to Mortgage Loan Officers for guidance
Access to account via the mobile app
Members save $500 on processing fees for a cash-out refinance
Cons
Doesn’t offer FHA, VA or USDA loans
Available in all states except Hawaii
SoFi is known for offering a plethora of savings opportunities to members who use their financial products and services. When it comes to mortgage refinancing, this lender gives members the opportunity to save $500 on the loan processing fee as long as they also have a SoFi Personal Loan, SoFi Student Loan or have a minimum balance of $50,000 in their SoFi Invest accounts at the time of their application submission.
Mortgage refinance terms range from 10 years to 30 years, and SoFi offers an app to help customers have easy access to managing their account details.
Best for availability
PNC Bank Mortgage Refinance
Annual Percentage Rate (APR)
Apply online for personalized rates; fixed-rate and adjustable-rate mortgages included
Types of loans
Fixed-rate, adjustable-rate, FHA loans, VA loans and jumbo loans
Fixed-rate Terms
10 – 30 years
Adjustable-rate Terms
Available in periods of 7 and 10 years for a fixed rate, followed by an adjustment period when the interest rate may increase or decrease on an annual or semi-annual basis
Credit needed
Not disclosed
Pros
Refinance available for primary and secondary homes, and investment properties
Offers a wide variety of loans to suit an array of customer needs
Offers refinancing for VA and FHA loans
Available in all 50 states
Online and in-person service available
Cons
Doesn’t offer home renovation loans
PNC Bank is one of the most accessible lenders on this list since it provides services and mortgage products in all 50 states — both in-person and online. This lender offers fixed-rate loan terms that range from 10 years to 30 years. For jumbo loans, though, the loan terms go from 15 years to 30 years. Adjustable-rate terms are also available.
To make sure you’re fully prepared to begin the application process, PNC Bank has an application checklist on their website that lists all of the documents you’ll need if you want to refinance your mortgage.
Best for a credit union
PenFed Credit Union Mortgage Refinance
Annual Percentage Rate (APR)
Apply online for personalized rates
Types of loans
Rate-and-term refinance (for conventional, FHA and VA refinances), VA Interest Rate Reduction Loan (IRRRL), cash-out refinance, home equity line of credit (HELOC)
Fixed-rate Terms
Not disclosed
Adjustable-rate Terms
Credit needed
Not disclosed
Pros
Covers cost of VA funding fees, title fees, recording fees, transfer taxes, appraisal fee, credit report and flood certification where applicable
Offers jumbo loan refinance up to $3 million
Online support available
Available in all 50 states
Cons
Doesn’t offer USDA loans
Doesn’t offer adjustable-rate terms
PenFed cuts out some major closing costs for homeowners looking to refinance their mortgage. It will cover the cost of VA funding fees, title fees, recording fees, transfer taxes, appraisal fee, credit report and flood certification wherever applicable. This could save borrowers anywhere from hundreds to thousands of dollars in closing costs.
Of course, you’ll want to make sure you have a PenFed membership in order to apply for this lender’s mortgage products. Membership is open to everyone but you’ll need to open a savings account and make an initial deposit of at least $5.
FAQs
What do you need to refinance your mortgage?
As with any other line of credit, mortgage refinancing requires a decent credit score. Lenders typically like to see a minimum credit score of 620 or higher. The higher your credit score, the more likely you are to be qualified for a lower mortgage interest rate. Borrowers should also have at least 20% equity in their home in order to refinance. You’ll also need to provide documents, such as bank statements, pay stubs, W-2s, 1099s, tax returns, employment verification and proof of homeowner’s insurance.
How do you refinance your mortgage?
To refinance your mortgage, you’ll want to make sure you have all the required financial documents and meet your desired lender’s qualifications. You’ll use this information to submit an application (either online or in-person, depending on the lender you’d like to go with). Lenders typically also offer the help of mortgage refinance experts who can walk you through the process, answer any questions you have and make sure you submit a complete application.
How often can you refinance your mortgage?
There is no limit on the number of times you can refinance a home loan. Refinancing can be valuable when your circumstances change. For instance, if you were to change careers and take a pay cut, refinancing into a mortgage with a longer loan term would allow you to receive lower monthly payments.
Just be aware that refinancing is not free and every time you refinance, you’ll have to pay a slew of closing costs and other fees, and your credit score could take a hit every time the lender runs a hard inquiry.
What are the different types of mortgage refinances?
A rate-and-term refinance is one of the most common types of mortgage refinancing since it involves simply changing the loan term (how long you have to repay the balance) or the interest rate.
Borrowers can also do a cash-out refinance where the borrower takes out a loan that’s larger than what they currently owe and can use the difference between the two loans to receive cash. Borrowers can then use that cash for a large expense, a down payment on another property, debt consolidation and more.
As the name suggests, FHA Streamline Refinance is meant for borrowers who are looking to refinance their FHA loan. A VA Streamline Refinance is similar except it’s meant for VA loan borrowers.
Does refinancing hurt your credit?
As with any other form of credit you apply for, applying for a mortgage refinance means the lender will run a hard inquiry on your credit. Hard pulls do temporarily lower your credit score by a few points. However, making on-time monthly payments and avoiding applying for too many new lines of credit all at once can help your credit score recover.
Reasons not to refinance your mortgage
Refinancing isn’t for everyone. If you already have a low, fixed interest rate with affordable monthly payments, refinancing your mortgage might not save you money. In fact, due to closing costs, refinancing can actually wind up costing you more than you anticipated.
You should also avoid refinancing if you have bad or fair credit since you could end up with a higher interest rate, which will make the loan even more expensive.
It’s also not a good idea to refinance if you’re already several years into a mortgage. Refinancing essentially replaces your loan with a new one and you’ll have to start all over with payments. So if you’re already, say, 15 years into a 30-year mortgage, refinancing to another 30-year mortgage means you’ll still be on the hook with the mortgage for another 30 years.
Bottom line
Refinancing can be instrumental for those who want to have lower monthly payments or a lower interest rate, or want to tap into some of the cash in their home. Just make sure you run the numbers so you can be sure they make sense for your situation, since there are some instances when refinancing may not be a good idea.
Our methodology
To determine which mortgage lenders are the best, CNBC Select analyzed dozens of U.S. mortgages offered by both online and brick-and-mortar banks, including large credit unions, that come with fixed-rate APRs and flexible loan amounts and terms to suit an array of financing needs.
When narrowing down and ranking the best mortgages, we focused on the following features:
Fixed-rate APR: Variable rates can go up and down over the lifetime of your loan. With a fixed rate APR, you’ll lock in an interest rate for the duration of the loan’s term, which means your monthly payment won’t vary, making your budget easier to plan.
Types of loans offered: The most common kinds of mortgage loans include conventional loans, FHA loans and VA loans. Lenders may also offer USDA loans and jumbo loans. Having more options available means the lender can to cater to a wider range of applicants. We’ve also considered loans that would suit the needs of borrowers who plan to purchase their second home or a rental property.
Closing timeline: The lenders on our list are able to offer closing timelines that vary from as promptly as two weeks after the home purchase agreement has been signed to as many as 45 days after the agreement has been signed. Specific closing timelines have been noted for each lender.
Fees: Common fees associated with mortgage applications include origination fees, application fees, underwriting fees, processing fees and administrative fees. We evaluate these fees in addition to other features when determining the overall offer from each lender. Though some lenders on this list do not charge these fees, we have noted any instances where a lender does.
Flexible minimum and maximum loan amounts/terms: Each mortgage lender provides a variety of financing options that you can customize based on your monthly budget and how long you need to pay back your loan.
No early payoff penalties: The mortgage lenders on our list do not charge borrowers for paying off the loan early.
Streamlined application process: We considered whether lenders offered a convenient, fast online application process and/or an in-person procedure at local branches.
Customer support: Every mortgage lender on our list provides customer service via telephone, email or secure online messaging. We also opted for lenders with an online resource hub or advice center to help you educate yourself about the personal loan process and your finances.
Minimum down payment: Although minimum down payment amounts depend on the type of loan a borrower applies for, we noted lenders that offer additional specialty loans that come with a lower minimum down payment amount.
After reviewing the above features, we sorted our recommendations by best for overall financing needs, quick closing timeline, lower interest rates and flexible terms.
Note that the rates and fee structures advertised for mortgage refinances are subject to fluctuate in accordance with the Fed rate. However, once you accept your mortgage agreement, a fixed-rate APR will guarantee your interest rate and monthly payment remain consistent throughout the entire term of the loan, unless you choose to refinance your mortgage at a later date for a potentially lower APR. Your APR, monthly payment and loan amount depend on your credit history, creditworthiness, debt-to-income ratio and the desired loan term. To take out a mortgage, lenders will conduct a hard credit inquiry and request a full application, which could require proof of income, identity verification, proof of address and more.
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Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.
After several consecutive weeks of drops, mortgage applications jumped 16% for the week ending July 9, 2021, according to the latest report from the Mortgage Bankers Association.
The prior week‘s report showed a 1.8% drop in applications to the lowest level since January 2020.
The sudden increase in applications was driven “heavily” by increased refinancing as mortgage rates dipped again, said Joel Kan, MBA associate vice president of economic and industry forecasting.
“Treasury yields have trended lower over the past month as investors remained concerned about the COVID-19 variant and slowing economic growth,” Kan said. “There also may have been a delayed spillover of applications from the previous week, when rates also decreased but there was not much of response in terms of refinance applications.”
Those lower rates may be helping some homebuyers close on their purchases, especially first-time homebuyers, Kan said.
How to identify fraud risks early in the origination process
Now, more than ever, lenders need a solution that creates more efficiencies so they can better manage high volumes. First American Data & Analytics’ solutions help lenders better identify fraud risks and errors in mortgage applications.
Presented by: FADT
“We continue to see ebbs and flows as housing demand remains strong, but for-sale inventory remains low,” he said. “The year-over-year comparisons were down significantly for both purchase and refinance applications.”
The sheer amount of bidding wars decreased from May to June, per a study released this week from Redfin, as more homes for sale have slowly hit the market in the past month. Overall inventory is still low, of course, but a cooling of the market could lead to more would-be buyers and an increase in mortgage applications soon, experts said.
The refinance share of activity of total mortgage applications increased to 64.1% from 61.6% the previous week. On an unadjusted basis, the market composite index decreased 13% compared with the previous week. However, the seasonally adjusted purchase index increased 8% from one week earlier.
The FHA share of total mortgage applications decreased to 9.5% from 9.8% the week prior, and the VA share of total mortgage applications decreased to 10.3% from 10.8%.
Here is a more detailed breakdown of this week’s mortgage applications data:
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($548,250 or less) decreased to 3.09% from 3.15%
The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $548,250) decreased to 3.16% from 3.20%
The average contract interest rate for 30-year fixed-rate mortgages decreased to 3.15% from 3.17%
The average contract interest rate for 15-year fixed-rate mortgages also decreased to 2.48% from 2.52%
The average contract interest rate for 5/1 ARMs increased to 3.02% from 2.94%, with points decreasing to 0.32 (including the origination fee) for 80% LTV loans
On August 29th, 2019, major iBuyer Opendoor launched a mortgage lending division known as “Opendoor Home Loans” to create a one-stop shop for home buyers and sellers.
As a result, those interested in purchasing a property from Opendoor can take advantage of their financing department, similar to how home builders partner with mortgage lenders to facilitate loan closings.
You can even sell an existing property to Opendoor and finance a new one, all with one company if you feel so inclined.
Let’s learn more about this new mortgage lender, which operates out of Plano, Texas.
Opendoor Home Loans Wants to Cut Closing Times in Half
Aim to close home purchase loans in 3 weeks
Offer $100 per day toward closing costs if loan closing is delayed
Can generate a pre-qual letter in minutes via phone or computer
Limited-time $1,000 closing cost credit also available to customers
Noting that financing is often “one of the most complicated and intimidating parts of a home purchase,” they claim they can cut the typical 45-day timeline in half.
So instead of closing in a month and a half, they aim to close your home loan in as little as about three weeks.
They’re backing up that promise by offering $100 per day for every day beyond the scheduled closing date that the loan closing is delayed.
To get started, they ask that you get pre-qualified, which can be accomplished over the phone or online in just minutes.
You’ll receive a pre-qualification letter as well, which can be used to show home sellers that you’re a serious buyer.
Once you find your dream home and your loan is submitted, you’ll receive one-on-one support along with regular updates from your dedicated Mortgage Consultant.
If you happen to be using Opendoor’s trade-in program, where you sell them your old home and buy a new home from them directly, you can schedule the closings to take place on the same day.
At the moment, the company is offering a limited-time $1,000 credit toward closing costs, which is automatically applied to your closing statement.
Speaking of closing costs, they say they don’t charge an application fee, and that you’ll only be on the hook for third-party fees, such as home appraisal and title/escrow fees.
What Types of Loans Does Opendoor Home Loans Offer
Currently offer conventional mortgages (Fannie Mae and Freddie Mac) and FHA/VA loans
Can obtain a fixed-rate mortgage or an ARM with varying loan terms
Offer both home purchase loans and mortgage refinances
A minimum 620-FICO score is required for loan approval
The company began by only offering conventional mortgages, those backed by the likes of Fannie Mae and Freddie Mac, but has since expanded into FHA and VA loans.
They do not offer USDA loans, though that may change in the future as they expand.
In terms of specific loan programs, fixed-rate mortgages are available in 30-, 25-, 15-, or 10-year terms.
You can also get an adjustable-rate mortgage with an initial fixed-rate period of five, seven, or 10 years.
Regarding their mortgage rates, they simply refer to them as “competitive,” so be sure to shop around to see what other lenders are offering for similar loan scenarios.
The lowest down payment available for Fannie- and Freddie-backed loans is 3%, so even those with little set aside in assets have the ability to qualify for a mortgage.
Like Fannie/Freddie, Opendoor Home Loans requires a minimum 620-credit score to get approved for a mortgage.
Once the loan is closed, it will be sold off and serviced by a different loan servicing company, which is common practice in the mortgage lending industry.
Where Opendoor Home Loans Operates
Only licensed to lend in eight states at the moment
Additional states are planned for the near future
Can finance any home purchase, not just Opendoor-owned properties
Company will likely serve mostly Opendoor home buyers to facilitate loan closings
Currently, the company only offers financing to home buyers in the states of Arizona, Colorado, Florida, Georgia, North Carolina, South Carolina, Tennessee, and Texas.
They plan to expand to more states in the near future if all goes well.
You can finance any home purchase in these states, even if it’s not an Opendoor-owned home.
You’ll just want to ensure it actually makes sense to do so versus using one of the many other lenders out there.
All in all, Opendoor Home Loans joins a very crowed space in the mortgage ecosystem, but it makes sense to have their own financing department to facilitate their iBuying activity.
Ultimately, it gives them more control of the process to ensure there aren’t any roadblocks put up by third parties, similar to why Zillow Home Loans exists.
Whether they become a major mortgage lender in the future remains to be seen, but my guess is they will mostly serve Opendoor customers.
In November 2021, Opendoor acquired RedDoor, a so-called digital-first mortgage brokerage that delivers 60-second verified pre-approvals.
The move should allow the company to compete with the likes of Rocket Mortgage and other tech-heavy lenders, while also bolstering their iBuying business.
Update: In early November 2022, Opendoor Home Loans was shuttered. The company also laid off 550 workers, or 18% of Opendoor staff.
In January 2023, Opendoor announced that Lower was its exclusive mortgage provider.
Mortgage applications decreased again, this time falling 1.8% in the week ending July 2, 2021, according to the latest report from the Mortgage Bankers Association.
This marks the third straight week of application declines, and represents the lowest level since the January 2020.
“Treasury yields have been volatile despite mostly positive economic news, including last week’s June jobs report, which showed ongoing improvements in the labor market,” said Joel Kan, MBA associate vice president of economic and industry forecasting. “However, rates continued to move lower, especially late in the week.”
Kan said the 30-year fixed rate was 11 basis points lower than the same week a year ago, and refinance applications have trended lower than 2020 levels for the past four months.
Those who are filling out purchase mortgage applications are requesting bigger loan amounts, but there are fewer applicants. It has most acutely affected first-time homebuyers.
How to identify fraud risks early in the origination process
Now, more than ever, lenders need a solution that creates more efficiencies so they can better manage high volumes. First American Data & Analytics’ solutions help lenders better identify fraud risks and errors in mortgage applications.
Presented by: FADT
“Swift home-price growth across much of the country, driven by insufficient housing supply, is weighing on the purchase market and is pushing average loan amounts higher,” Kan said.
The refinance share of activity decreased to 61.6% of total mortgage applications from 61.9% the previous week. On an unadjusted basis, the market composite index decreased 1% compared with the previous week. The seasonally adjusted purchase index also decreased only 1% from one week earlier.
The FHA share of total mortgage applications remained increased to 9.8% from the week prior, and the VA share of total mortgage applications increased to 10.8% from 10.5%.
Here is a more detailed breakdown of this week’s mortgage applications data:
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($548,250 or less) decreased to 3.15% from 3.20%
The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $548,250) decreased to 3.20% from 3.23%
The average contract interest rate for 30-year fixed-rate mortgages decreased to 3.17% from 3.19%
The average contract interest rate for 15-year fixed-rate mortgages also decreased to 2.52% from 2.56%
The average contract interest rate for 5/1 ARMs decreased to 2.94% from 2.98%, with points increasing to 0.34 (including the origination fee) for 80% LTV loans
Average mortgage rates tumbled yesterday following a first-class inflation report. In some cases, they are now back below 7% for an excellent borrower wanting a conventional, 30-year, fixed-rate mortgage. Phew!
First thing, markets were signaling that mortgage rates today might fall but perhaps only a little. However, these early mini-trends often switch speed or direction later in the day.
Current mortgage and refinance rates
Program
Mortgage Rate
APR*
Change
Conventional 30-year fixed
7.122%
7.147%
+0.15
Conventional 15-year fixed
6.297%
6.321%
+0.1
Conventional 20-year fixed
7.34%
7.403%
+0.03
Conventional 10-year fixed
6.872%
6.985%
+0.05
30-year fixed FHA
7.065%
7.685%
+0.02
15-year fixed FHA
6.503%
6.972%
+0.16
30-year fixed VA
6.75%
6.959%
+0.25
15-year fixed VA
6.625%
6.965%
Unchanged
5/1 ARM Conventional
6.75%
7.266%
Unchanged
5/1 ARM FHA
6.75%
7.532%
+0.11
5/1 ARM VA
6.75%
7.532%
+0.11
Rates are provided by our partner network, and may not reflect the market. Your rate might be different. Click here for a personalized rate quote. See our rate assumptions See our rate assumptions here.
Should you lock a mortgage rate today?
The chances of mortgage rates falling far and for long later this year improved yesterday. That day’s inflation report helped a lot.
But I reckon we’ll probably need a heap more similarly rate-friendly data in order to bring about that significant and sustained fall. And, while it’s possible such a heap will be delivered quickly, it’s probably more likely we’ll see any improvements late this year or sometime in 2024.
So, my personal rate lock recommendations remain:
LOCK if closing in 7 days
LOCK if closing in 15 days
LOCK if closing in 30 days
LOCK if closing in 45 days
LOCK if closing in 60days
However, with so much uncertainty at the moment, your instincts could easily turn out to be as good as mine — or better. So let your gut and your own tolerance for risk help guide you.
>Related: 7 Tips to get the best refinance rate
Market data affecting today’s mortgage rates
Here’s a snapshot of the state of play this morning at about 9:50 a.m. (ET). The data, compared with roughly the same time yesterday, were:
The yield on 10-year Treasury notes tumbled to 3.81% from 3.91%. (Very good for mortgage rates.) More than any other market, mortgage rates typically tend to follow these particular Treasury bond yields
Major stock indexes were higher. (Bad for mortgage rates.) When investors buy shares, they’re often selling bonds, which pushes those prices down and increases yields and mortgage rates. The opposite may happen when indexes are lower. But this is an imperfect relationship
Oil prices decreased to $75.65 from $75.94 a barrel. (Neutral for mortgage rates*.) Energy prices play a prominent role in creating inflation and also point to future economic activity
Goldprices rose to $1,964 from $1,959 an ounce. (Neutral for mortgage rates*.) It is generally better for rates when gold prices rise and worse when they fall. Gold tends to rise when investors worry about the economy.
CNN Business Fear & Greed index — held steady at 81 out of 100. (Neutral for mortgage rates.) “Greedy” investors push bond prices down (and interest rates up) as they leave the bond market and move into stocks, while “fearful” investors do the opposite. So lower readings are often better than higher ones
*A movement of less than $20 on gold prices or 40 cents on oil ones is a change of 1% or less. So we only count meaningful differences as good or bad for mortgage rates.
Caveats about markets and rates
Before the pandemic and the Federal Reserve’s interventions in the mortgage market, you could look at the above figures and make a pretty good guess about what would happen to mortgage rates that day. But that’s no longer the case. We still make daily calls. And are usually right. But our record for accuracy won’t achieve its former high levels until things settle down.
So, use markets only as a rough guide. Because they have to be exceptionally strong or weak to rely on them. But, with that caveat, mortgage rates today might fall. However, be aware that “intraday swings” (when rates change speed or direction during the day) are a common feature right now.
Important notes on today’s mortgage rates
Here are some things you need to know:
Typically, mortgage rates go up when the economy’s doing well and down when it’s in trouble. But there are exceptions. Read ‘How mortgage rates are determined and why you should care’
Only “top-tier” borrowers (with stellar credit scores, big down payments, and very healthy finances) get the ultralow mortgage rates you’ll see advertised
Lenders vary. Yours may or may not follow the crowd when it comes to daily rate movements — though they all usually follow the broader trend over time
When daily rate changes are small, some lenders will adjust closing costs and leave their rate cards the same
Refinance rates are typically close to those for purchases.
A lot is going on at the moment. And nobody can claim to know with certainty what will happen to mortgage rates in the coming hours, days, weeks or months.
What’s driving mortgage rates today?
Yesterday
Yesterday’s consumer price index (CPI) was a real tonic for mortgage rates. Comerica Bank’s chief economist said that “the fever is breaking“ for inflation.
And The Wall Street Journal (paywall) suggested: “Inflation cooled last month to its slowest pace in more than two years, giving Americans relief from a painful period of rising prices and boosting the chances that the Federal Reserve will stop raising interest rates after an expected increase this month.“
Note that the Journal’s writers (and many others) still expect a rise in general interest rates on Jul. 26. And that might limit how far mortgage rates can fall in the short term.
But other things could also limit the extent and duration of further decreases in mortgage rates. More and more people are talking up the possibility of a “soft landing.“ That refers to the Fed successfully driving down inflation without throwing the country into a recession.
But those of us wanting lower mortgage rates were kind of hoping for a recession. Of course, we didn’t want the bad stuff for the wider population. But mortgage rates tend to fall when the economy is in trouble and rise when it’s doing well.
So, while some falls in mortgage rates might be on the cards later in the year or in 2024, they might not be as big as we’d once been able to hope.
The rest of this week
This morning’s producer price index (PPI) for June was nothing like as important to mortgage rates as yesterday’s CPI. It and tomorrow’s import price index (IPI) are generally seen as secondary inflation measures. But, with markets hyper-sensitive to inflation news right now, they’re worth observing.
Today’s PPI was probably good for mortgage rates. The headline figure (PPI for final demand) came in at 0.1% in June, compared with the expected 0.2%. Just don’t expect it to have as positive an effect as yesterday’s news.
Please read the weekend edition of this daily report for more background on what’s happening to mortgage rates.
Recent trends
According to Freddie Mac’s archives, the weekly all-time low for mortgage rates was set on Jan. 7, 2021, when it stood at 2.65% for conventional, 30-year, fixed-rate mortgages.
Freddie’s Jul. 6 report put that same weekly average at 6.81%, up from the previous week’s 6.71%. But Freddie is almost always out of date by the time it announces its weekly figures.
In November, Freddie stopped including discount points in its forecasts. It has also delayed until later in the day the time at which it publishes its Thursday reports. Andwe now update this section on Fridays.
Expert forecasts for mortgage rates
Looking further ahead, Fannie Mae and the Mortgage Bankers Association (MBA) each has a team of economists dedicated to monitoring and forecasting what will happen to the economy, the housing sector and mortgage rates.
And here are their rate forecasts for the current quarter (Q2/23) and the following three quarters (Q3/23, Q4/23 and Q1/24).
The numbers in the table below are for 30-year, fixed-rate mortgages. They were both updated in June.
In the past, we included Freddie Mac’s forecasts. But it seems to have given up on publishing those.
Forecaster
Q2/23
Q3/23
Q4/23
Q1/24
Fannie Mae
6.5%
6.6%
6.3%
6.1%
MBA
6.5%
6.2%
5.8%
5.6%
Of course, given so many unknowables, the whole current crop of forecasts might be even more speculative than usual. And their past record for accuracy hasn’t been wildly impressive.
Find your lowest mortgage rate today
You should comparison shop widely, no matter what sort of mortgage you want. Federal regulator the Consumer Financial Protection Bureau found in May 2023:
“Mortgage borrowers are paying around $100 a month more depending on which lender they choose, for the same type of loan and the same consumer characteristics (such as credit score and down payment).”
In other words, over the lifetime of a 30-year loan, homebuyers who don’t bother to get quotes from multiple lenders risk losing an average of $36,000. What could you do with that sort of money?
Mortgage rate methodology
The Mortgage Reports receives rates based on selected criteria from multiple lending partners each day. We arrive at an average rate and APR for each loan type to display in our chart. Because we average an array of rates, it gives you a better idea of what you might find in the marketplace. Furthermore, we average rates for the same loan types. For example, FHA fixed with FHA fixed. The end result is a good snapshot of daily rates and how they change over time.
How your mortgage interest rate is determined
Mortgage and refinance rates vary a lot depending on each borrower’s unique situation.
Factors that determine your mortgage interest rate include:
Overall strength of the economy — A strong economy usually means higher rates, while a weaker one can push current mortgage rates down to promote borrowing
Lender capacity — When a lender is very busy, it will increase rates to deter new business and give its loan officers some breathing room
Property type (condo, single-family, town house, etc.) — A primary residence, meaning a home you plan to live in full time, will have a lower interest rate. Investment properties, second homes, and vacation homes have higher mortgage rates
Loan-to-value ratio (determined by your down payment) — Your loan-to-value ratio (LTV) compares your loan amount to the value of the home. A lower LTV, meaning a bigger down payment, gets you a lower mortgage rate
Debt-To-Income ratio — This number compares your total monthly debts to your pretax income. The more debt you currently have, the less room you’ll have in your budget for a mortgage payment
Loan term — Loans with a shorter term (like a 15-year mortgage) typically have lower rates than a 30-year loan term
Borrower’s credit score — Typically the higher your credit score is, the lower your mortgage rate, and vice versa
Mortgage discount points — Borrowers have the option to buy discount points or ‘mortgage points’ at closing. These let you pay money upfront to lower your interest rate
Remember, every mortgage lender weighs these factors a little differently.
To find the best rate for your situation, you’ll want to get personalized estimates from a few different lenders.
Are refinance rates the same as mortgage rates?
Rates for a home purchase and mortgage refinance are often similar.
However, some lenders will charge more for a refinance under certain circumstances.
Typically when rates fall, homeowners rush to refinance. They see an opportunity to lock in a lower rate and payment for the rest of their loan.
This creates a tidal wave of new work for mortgage lenders.
Unfortunately, some lenders don’t have the capacity or crew to process a large number of refinance loan applications.
In this case, a lender might raise its rates to deter new business and give loan officers time to process loans currently in the pipeline.
Also, cashing out equity can result in a higher rate when refinancing.
Cash-out refinances pose a greater risk for mortgage lenders, so they’re often priced higher than new home purchases and rate-term refinances.
How to get the lowest mortgage or refinance rate
Since rates can vary, always shop around when buying a house or refinancing a mortgage.
Comparison shopping can potentially save thousands, even tens of thousands of dollars over the life of your loan.
Here are a few tips to keep in mind:
1. Get multiple quotes
Many borrowers make the mistake of accepting the first mortgage or refinance offer they receive.
Some simply go with the bank they use for checking and savings since that can seem easiest.
However, your bank might not offer the best mortgage deal for you. And if you’re refinancing, your financial situation may have changed enough that your current lender is no longer your best bet.
So get multiple quotes from at least three different lenders to find the right one for you.
2. Compare Loan Estimates
When shopping for a mortgage or refinance, lenders will provide a Loan Estimate that breaks down important costs associated with the loan.
You’ll want to read these Loan Estimates carefully and compare costs and fees line-by-line, including:
Interest rate
Annual percentage rate (APR)
Monthly mortgage payment
Loan origination fees
Rate lock fees
Closing costs
Remember, the lowest interest rate isn’t always the best deal.
Annual percentage rate (APR) can help you compare the ‘real’ cost of two loans. It estimates your total yearly cost including interest and fees.
Also pay close attention to your closing costs.
Some lenders may bring their rates down by charging more upfront via discount points. These can add thousands to your out-of-pocket costs.
3. Negotiate your mortgage rate
You can also negotiate your mortgage rate to get a better deal.
Let’s say you get loan estimates from two lenders. Lender A offers the better rate, but you prefer your loan terms from Lender B. Talk to Lender B and see if they can beat the former’s pricing.
You might be surprised to find that a lender is willing to give you a lower interest rate in order to keep your business.
And if they’re not, keep shopping — there’s a good chance someone will.
Fixed-rate mortgage vs. adjustable-rate mortgage: Which is right for you?
Mortgage borrowers can choose between a fixed-rate mortgage and an adjustable-rate mortgage (ARM).
Fixed-rate mortgages (FRMs) have interest rates that never change, unless you decide to refinance. This results in predictable monthly payments and stability over the life of your loan.
Adjustable-rate loans have a low interest rate that’s fixed for a set number of years (typically five or seven). After the initial fixed-rate period, the interest rate adjusts every year based on market conditions.
With each rate adjustment, a borrower’s mortgage rate can either increase, decrease, or stay the same. These loans are unpredictable since monthly payments can change each year.
Adjustable-rate mortgages are fitting for borrowers who expect to move before their first rate adjustment, or who can afford a higher future payment.
In most other cases, a fixed-rate mortgage is typically the safer and better choice.
Remember, if rates drop sharply, you are free to refinance and lock in a lower rate and payment later on.
How your credit score affects your mortgage rate
You don’t need a high credit score to qualify for a home purchase or refinance, but your credit score will affect your rate.
This is because credit history determines risk level.
Historically speaking, borrowers with higher credit scores are less likely to default on their mortgages, so they qualify for lower rates.
For the best rate, aim for a credit score of 720 or higher.
Mortgage programs that don’t require a high score include:
Conventional home loans — minimum 620 credit score
FHA loans — minimum 500 credit score (with a 10% down payment) or 580 (with a 3.5% down payment)
VA loans — no minimum credit score, but 620 is common
USDA loans — minimum 640 credit score
Ideally, you want to check your credit report and score at least 6 months before applying for a mortgage. This gives you time to sort out any errors and make sure your score is as high as possible.
If you’re ready to apply now, it’s still worth checking so you have a good idea of what loan programs you might qualify for and how your score will affect your rate.
You can get your credit report from AnnualCreditReport.com and your score from MyFico.com.
How big of a down payment do I need?
Nowadays, mortgage programs don’t require the conventional 20 percent down.
In fact, first-time home buyers put only 6 percent down on average.
Down payment minimums vary depending on the loan program. For example:
Conventional home loans require a down payment between 3% and 5%
FHA loans require 3.5% down
VA and USDA loans allow zero down payment
Jumbo loans typically require at least 5% to 10% down
Keep in mind, a higher down payment reduces your risk as a borrower and helps you negotiate a better mortgage rate.
If you are able to make a 20 percent down payment, you can avoid paying for mortgage insurance.
This is an added cost paid by the borrower, which protects their lender in case of default or foreclosure.
But a big down payment is not required.
For many people, it makes sense to make a smaller down payment in order to buy a house sooner and start building home equity.
Choosing the right type of home loan
No two mortgage loans are alike, so it’s important to know your options and choose the right type of mortgage.
The five main types of mortgages include:
Fixed-rate mortgage (FRM)
Your interest rate remains the same over the life of the loan. This is a good option for borrowers who expect to live in their homes long-term.
The most popular loan option is the 30-year mortgage, but 15- and 20-year terms are also commonly available.
Adjustable-rate mortgage (ARM)
Adjustable-rate loans have a fixed interest rate for the first few years. Then, your mortgage rate resets every year.
Your rate and payment can rise or fall annually depending on how the broader interest rate trends.
ARMs are ideal for borrowers who expect to move prior to their first rate adjustment (usually in 5 or 7 years).
For those who plan to stay in their home long-term, a fixed-rate mortgage is typically recommended.
Jumbo mortgage
A jumbo loan is a mortgage that exceeds the conforming loan limit set by Fannie Mae and Freddie Mac.
In 2023, the conforming loan limit is $726,200 in most areas.
Jumbo loans are perfect for borrowers who need a larger loan to purchase a high-priced property, especially in big cities with high real estate values.
FHA mortgage
A government loan backed by the Federal Housing Administration for low- to moderate-income borrowers. FHA loans feature low credit score and down payment requirements.
VA mortgage
A government loan backed by the Department of Veterans Affairs. To be eligible, you must be active-duty military, a veteran, a Reservist or National Guard service member, or an eligible spouse.
VA loans allow no down payment and have exceptionally low mortgage rates.
USDA mortgage
USDA loans are a government program backed by the U.S. Department of Agriculture. They offer a no-down-payment solution for borrowers who purchase real estate in an eligible rural area. To qualify, your income must be at or below the local median.
Bank statement loan
Borrowers can qualify for a mortgage without tax returns, using their personal or business bank account. This is an option for self-employed or seasonally-employed borrowers.
Portfolio/Non-QM loan
These are mortgages that lenders don’t sell on the secondary mortgage market. This gives lenders the flexibility to set their own guidelines.
Non-QM loans may have lower credit score requirements, or offer low-down-payment options without mortgage insurance.
Choosing the right mortgage lender
The lender or loan program that’s right for one person might not be right for another.
Explore your options and then pick a loan based on your credit score, down payment, and financial goals, as well as local home prices.
Whether you’re getting a mortgage for a home purchase or a refinance, always shop around and compare rates and terms.
Typically, it only takes a few hours to get quotes from multiple lenders — and it could save you thousands in the long run.
Current mortgage rates methodology
We receive current mortgage rates each day from a network of mortgage lenders that offer home purchase and refinance loans. Mortgage rates shown here are based on sample borrower profiles that vary by loan type. See our full loan assumptions here.