The 9 Best Online Mortgage Lenders
Online mortgage lenders specialize in end-to-end online applications.
With them, you can get pre-approved, submit your loan documents and sometimes even close the deal without having to appear in person.
Some thanks to their low overheads
Online mortgage lenders can
Also offer below average interest rates and fees.
But The cost varies for each borrower.
Check Your Mortgage Rates (Oct 24, 2020)
Minimum credit score
Average loan fees (as a% of loan amount)
Check Your Mortgage Rates (Oct 24, 2020)
Editor's note: The mortgage reports can be compensated by some of these lenders if you work with them. However, this does not affect our ratings. See our full editorial information.
In this article (jump to …)
Best Online Mortgage Lender Reviews
Below you can find out why we chose one
of the following companies as the top nine
Online mortgage lender.
As you read, note that the average mortgage rates and fees listed are as of 2019.
Mortgage rates have fallen sharply since then, so your own rates will be different.
However, these numbers can help you compare each lender's cost from apple to apple.
The best online mortgage lenders
1. NBKC (National Bank of Kansas City)
While NBKC is the third smallest lender on our list, it scored high on our criteria, including mortgage rates and fees.
Better Mortgage may have had lower fees – it's hard to beat zero – but NBKC's equally low interest rates and customer ratings took it to the top. Here are the key numbers.
NBKC Bank prices and requirements:
Median rate for 30-year FRM: 3.86% Average origination fee: 0.20% Median credit cost: 0.83% Minimum FICO credit score: 620 Minimum deposit: 3.5% (0% for VA loans) Overall rating Customer ratings: 4.87 out of 5
This outstanding online mortgage lender is well worth a look
if you want an online application.
For the sake of clarity, don't allow the name
"Bank of Kansas City" put you off.
Although NBKC has physically
With branches only in his hometown, this lender offers home loans online and by phone in all 50
>> Read the full NBKC report
2. Better mortgage
You could argue that Better Mortgage even outperforms NBKC because
after some of our
Better Mortgage has no lender fees and an easier one
Credit threshold of only 580 for example.
Better is knocked down by a hook, however
its customer ratings and its smaller selection of credit types.
Only you can decide whether to ignore
this and grab its great interest rates and zero lending
Better mortgage rates and requirements:
Median rate for 30-year FRM: 3.86% Average origination fee: 0.00% (no misprint) Median credit costs: 0.32% Minimum FICO credit score: 580 Minimum deposit: 3.0% (0% for VA – or USDA loans) Overall customer rating: 4.30 out of 5
Overall, Better Mortgage is another excellent and affordable lender that has earned its name for many borrowers.
Check your interest rate today, October 24, 2020 at Better Mortgage
3. Guaranteed rate
The guaranteed rate can be slightly higher
average interest rates than some others but it still
has much to offer.
That includes low fees, excellent
Customer reviews and a variety of credit products,
including those supported by both the VA and the USDA.
Guaranteed tariffs and requirements:
Median rate for 30-year FRM: 4% Average origination fee: 0.49% Median credit costs: 1.25% Minimum FICO credit score: 580 Minimum down payment: 3.5% (0% for VA or USDA loans) Overall rating of the customer reviews: 4.83 of 5
This average mortgage rate is only slightly higher than the best.
And of course, you can personally qualify for a lower interest rate
if you have high creditworthiness and an all around strong application.
>> Read the full Guaranteed Rate Review
4. Highest lending
Supreme Lending may not always have that
lowest prices. But customers
Give this online lender top ratings.
From where? Supreme Lending probably has exceptional service. The mean cost of borrowing is low. And it offers a wide variety of mortgages, including a special program for teachers.
Highest lending rates and requirements:
Median rate for 30-year FRM: 4.38% Average origination fee: 1.11% Median credit costs: 1.18% Minimum FICO credit score: 620 (may be lower for FHA loans) Minimum deposit: 3.0% (0% for VA or USDA loans) Overall customer ratings rating: 4.93 out of 5
Don't automatically exclude Supreme Lending just because of its interest rates. Because of its other characteristics, it may be worth paying a little more each month.
And you don't know what rate you're being offered until you request a quote. Maybe yours is below par.
5. Loan deposit
kreditDepot works well for mortgage interest rates and not bad for origination fees. And customers are happier than most, which is always a good sign.
kreditDepot also offers FHA 203 (k) loans that you can use to finance a fixer-upper.
LoanDepot Rates and Requirements:
Median rate for 30-year FRM: 3.99% Average origination fee: 0.92% Median credit cost: 1.72% Minimum FICO credit score: 580 Minimum deposit: 3.5% (0% for VA loans) Overall rating Customer ratings: 4.47 out of 5
Not to mention, creditDepot is a pioneer in the online mortgage loan space.
kreditDepot is known for its “mello smartloan” product, with which your loan can be closed in just 8 days (less than 1/3 of the time normally required).
This may not apply to every client (especially clients with outside-the-box mortgage loan applications), but it's worth a look.
Check your tariff today, October 24, 2020, at creditDepot
6. Rocket Mortgage
Rocket Mortgage is the all-online kid from parent company Quicken Loans. Get all the benefits of working with America's largest mortgage lender – but digitally.
And these benefits are very real. Quicken has ranked J.D.'s mortgage lender for the past 10 consecutive years. Power led.
Rocket Mortgage Rates and Requirements:
Median rate for 30-year FRM: 4.13% Average origination fee: 1.26% Median credit costs: 2.00% Minimum FICO credit score: 580 Minimum down payment: 3.5% (0% for VA loans) Overall rating Customer ratings: 4.47 out of 5
Rocket Mortgage is strong on customer service, loan supply, and flexibility with credit and down payment issues.
But those interest rates, origination fees, and loan costs look a little high. So compare your options to see that Rocket is your best deal.
Check your interest rate today, October 24th, 2020 at Rocket Mortgage
We use most of the data in the assessment
Other companies appear to be unavailable for Reali (formerly Lenda) as the company is too new.
However, some standout features helped
Reali makes our best-of list.
Reali Loans Prices and Requirements:
Median price for 30-year FRM: Unknown Average origination fee: Unknown Median loan costs: Unknown Minimum FICO credit score: 500 Minimum deposit: 5% Overall rating of customer reviews: 4.35 out of 5
Reali is clearly distinguished by the fact that applicants with a credit score of only 500 are considered.
In addition, the fees are said to be low and the customer service is good.
However, Reali has limited reach compared to other online mortgage lenders. At the time of writing, Reali was only authorized to issue loans in the following states:
Arizona, California, Colorado, Florida, Georgia, Illinois, Michigan, Oregon, Pennsylvania, Texas, Virginia, and Washington
SoFi is in our top 3 for interest rates, origination fees, and loan costs, which for many are the top considerations when choosing a lender.
What's it doing down here in our leaderboard?
Three reasons: First, SoFi has the highest credit score threshold of 660 or more. Second, a deposit of at least 10 percent is required. And third, SoFi's customer ratings are the penultimate on this list.
SoFi Mortgage Rates and Requirements:
Median rate for 30-year FRM: 3.88% Average origination fee: 0.53% Median credit costs: 0.86% Minimum FICO credit score: 660 Minimum deposit: 10% Overall rating of customer reviews: 3.97 out of 5
If your credit score is above 660 and a 10 percent down payment isn't an issue, you can choose to overlook SoFi's slightly lower customer satisfaction scores and add them to your shortlist.
9. Movement mortgage
Somebody had to get ninth, and it's Movement Mortgage. However, this is a review of the best online mortgage lenders. And nobody makes our list without seriously valuable properties.
Movement mortgage rates and requirements:
Median rate for 30-year FRM: 4.13% Average origination fee: 0.79% Median credit costs: 1.80% Minimum FICO credit score: 620 (although 580 with compensation factors) Minimum deposit: 3% (0% for VA and USDA loans) Overall customer ratings rating: 3.00 out of 5
Movement has a wide range of loans and has lower borrowing costs than Rocket, for example. We just want it to have an impact on customer satisfaction and mortgage rates.
Don't forget, however, that the rates we have given are only a median. Get a quote to see if you're in line for something better.
Compare the mortgage rates today. Start Here (October 24, 2020)
How we picked the best online mortgage lenders
We selected the best online lenders based on the following criteria:
Prices and Fees – Based on 2019 averages presented to the government by each lenderflexibility – Minimum credit rating and deposit requirements of each lenderLoan options – The breadth of each lender's mortgage product portfolioCustomer service – Use customer ratings and ratings on online public forums, including Zillow, Bankrate, and LendingTree
Of course there is shopping for a home loan
personally. And you will of course be more concerned with some criteria than others.
For example, if you have a star
Credit history, you wouldn't mind that SoFi passing score
Or if you buy a USDA loan,
it might not matter that NBKC has star rates because of it
does not offer the loan program
But everyone is probably concerned
about mortgage rates and fees. And most should pay attention to the lenders
Customer service scores.
Make sure you shop around and get price quotes from some of the best deals online
Mortgage lenders to find one that suits you.
Check your new plan (October 24, 2020)
What is an Online Lender?
Most mortgage lenders – including traditional banks and credit unions – allow you to apply online.
However, many of these online applications simply enter your details into a traditional mortgage process.
Pretty soon you will be dealing with loan officers who are
Working in sometimes frustrating bureaucracies.
Real online lenders have automated that
entire mortgage process, at least as far as this is visible to the borrower. (There
The backend may still be edited manually.)
Real online lenders have automated the entire mortgage process from application to completion.
With your permission, the IT systems of an online lender can reach
directly to your bank, the IRS and other automated systems to review your loan application.
Unless the computer spits out a query
that needs human eyes, almost everything happens automatically.
With luck, you may never have to set up a field
call or take a meeting. Something
Online mortgage lenders
You can even sign your graduation documents via email.
However, some borrowers may still prefer personal lending
Experience. And there are still plenty of mortgage lenders that offer this.
For more options, see:
Advantages and Disadvantages of Online Mortgage Loans
The best online mortgage lenders can offer real benefits. However, for some, they also have disadvantages.
Here is an overview of the pros and cons of online mortgage loans:
Advantages of online mortgage lenders
Online lenders often have lower fees. By lowering their labor costs, they can pass their savings on to youFor the same reason, some have a below-market interest rates. But not all. Public data shows a difference of more than 0.50 percent between the average rates for popular online lenders. So you still have to look for the best deal Statistics say online loans close faster on average. A Federal Reserve report examined the efficiency of fintech lenders versus traditional lenders. It says, "We find that FinTech lenders process loans 7.9 days faster than non-FinTech lenders." And there is an even bigger impact on refinancing. FinTech lenders process mortgages across all specifications 9.3 to 14.6 days faster than other lenders “And of course the digital application process is more convenient for you as a borrower
Disadvantages of online mortgage lenders
Online lenders are generally better at vanilla mortgages than specialty loans. If your needs are outside of the mainstream, perhaps because your credit or income is somewhat in doubt, it may be better to go with a traditional lenderMany people still appreciate the human touch. Building a relationship with your loan officer can help you with thisE-Closing can have its disadvantages. You may prefer an expert who will answer your questions at the last minuteOnline lenders may have less choice of mortgage options. First, search your shortlist so that you only apply for those who meet your requirements and can easily work with borrowers like you
For most borrowers, online lenders can offer solid advantages in terms of competitive interest rates, fees, and closing times.
Is that enough to make you swing Or do you prefer the human touch? Only you can choose.
Check your new plan (October 24, 2020)
Refinance With An Online Lender
Online mortgage lenders can be a great one
Option to refinance your home.
Refinancing means that you are replacing your electricity
Mortgage with a new one – usually a lower interest rate or a shorter loan
Term or both.
Once you have built up equity in your home, you can also apply for withdrawal refinancing.
Many online lenders offer payout refinancing, home equity loans, and home equity lines of credit, as well as traditional interest rate and term refinancing.
This is one type of loan that pays off
existing mortgage offering extra money to use to remodel your home
Consolidation of credit card debt or for other purposes.
Most online lenders also offer second
Mortgages such as home equity loans or a home equity line of credit (HELOC).
A HELOC, payout refinance, or a home loan are not options
unless you have home equity.
Equity refers to the portion of home equity that you own. When your house
is worth $ 250,000 and you owe $ 150,000 on your mortgage loan, your equity would be
Be $ 100,000.
Check your refinancing eligibility (October 24, 2020)
Home Buyer's Guide To Online Mortgage Loans
If you have previously received a home loan, you have
Chances are, you already know the jargon and have no problem navigating any online jargon
But one of the disadvantages of the online mortgage
Process is its level of difficulty for first-time buyers who may not be sure
what kind of mortgage they need.
The wrong type of loan can cost you
You, both in monthly payment and in interest over the term of the
If you are considering one of the best
Online mortgage lender, but you've never been a homeowner
know these basics before applying.
of home loans
Home loans generally fall into two categories:
Conventional Loans – About 3 out of 5 are home loans conventional loans. These mortgages are usually the most affordable when you have a larger down payment and higher credit rating
Subsidized Loans – Federal government support helps lenders offer competitive interest rates on subsidized loans. These include VA loan, USDA loan, and FHA loan. All three offer special benefits for homebuyers, from lower credit requirements to zero down payment to affordable mortgage insurance
for a mortgage loan
Online mortgage lenders always run one
Someone with excellent credit and low credit
The debt to income ratio can usually qualify for the best mortgage rate.
Against some advice you might see
You can easily get a mortgage online with a low down payment or possibly no
Deposit at all.
Conventional mortgages usually require at least a 620 credit score and a Debt to income Ratio of 43 percent or less. However, different lenders can set their own criteria. Traditional loans require a down payment of at least 3 percent
Have subsidized loans
FHA loan You have a minimum loan value of 580 and must lower at least 3.5 percentUSDA loan Don't allow deposit and require a credit score of 640 or greater. The house must also be in one eligible rural or suburban areaVA loan Also, don't allow a deposit and technically don't have a minimum score. Most lenders, however, require a minimum of 620. The borrower must qualify for VA assistance based on their military service history
You can get pre-approved with an online lender to see what mortgage loan you are eligible for and what your interest rates and loan costs are likely to be.
Check Your Home Loan Eligibility (Oct 24, 2020)
Variable rate mortgages versus fixed rate mortgages
A fixed rate mortgage loan locks up
Interest rate and payment that do not change over a lifetime
A floating rate mortgage has a fixed rate mortgage
Installment for an introductory phase, usually five or seven years. After that
The intro rate expires, the mortgage rate and monthly payment can change every year.
Most online lenders offer both types of home loans – fixed rate or adjustable rate mortgages (ARMs).
is a loan term?
Your loan term is related to the amount of
Time in which you owe home loan money. A 30 year mortgage spreads yours
Payback over – you guessed it – 30 years.
Offer longer loan terms like 30 years
lower monthly mortgage payments as the balance is spread over more
But you also pay more interest
Fees because of the longer term.
15 year fixed rate mortgages usually offer
lower interest rates than 30 year loans. However, the payments have been significantly higher since then
The loan must be repaid in half the time.
Calculating a mortgage payment
Your monthly mortgage payment will be
determined by several factors:
Loan amount – A larger loan increases your monthly payments; A larger down payment can lower your loan amountLoan term – A longer repayment term will lower your monthly payments, but will increase the interest paid over time, provided you stick to the amortization scheduleinterest rate – Today's historically low interest rates translate into lower monthly mortgage payments. Lower interest rates allow new homeowners more creditMortgage insurance – If you don't wager at least 20 percent on a traditional loan (or qualify for a VA loan), you are paying out mortgage insurance. This coverage will insure the lender in the event you default on the loan. It usually costs around 1% of the annual loan amount paid monthly with your mortgage paymentsTaxes, Insurance and HOA – Your mortgage loan service provider collects your annual homeowner insurance premiums and local property taxes and adds these costs to your mortgage payment each month. Often times, when homeowner membership fees are required for the house or apartment, the mortgage also pays them
Use a mortgage calculator to work out your price range.
Pay closing costs
Buying or refinancing real estate always involves closing costs. These costs are usually between 2 and 5 percent of the purchase price of your home.
You can negotiate to lessen the closing
Costs such as the lender's loan origination fee.
Other costs such as an assessment or a title
Search, come through third party providers and you cannot avoid them.
Some home buyers may get the seller to pay the closing costs. others may qualify to take out benefit programs.
When you refinance, you may be able to include the closing costs in your loan balance.
What is a Mortgage Prequalification?
Mortgage prequalification occurs when the lender takes a first look
Your credit and finances and gives you an estimate of how much money you can
Prequalification is not an obligation on the lender. It's just one
Estimate what you are likely to qualify for. This can help you find your home
Purchase price range.
In order to actually bid on a home, you need pre-approval
Pre-approval means the lender has vital information to review
Your application, such as your credit score and income.
Pre-approval is an obligation on the mortgage bank to provide you with credit –
provided all of your information is checked out in the final drawing process.
Best Online Mortgage Lenders: Summary
Here's a round-up of our picks for the 9 best online mortgage lenders in 2020:
NBKCBetter MortgageGuaranteed RateSupreme Lending LoanDepotRocket MortgageRealiSoFiMovement Mortgage
Remember that the best lender for you will depend on your type of loan, the home you are buying, and your finances.
To see who can offer you the lowest price, get estimates from a few different lenders and compare them side by side.
Check your new plan (October 24, 2020)