Mortgage

Newrez mortgage ranking for 2021

overview

Newrez LLC, originally called New Penn Financial, is a direct mortgage lender that offers a variety of flexible home loan solutions to bring home ownership to its customers.

Founded in 2008, Newrez is a statewide mortgage lender licensed in all 50 states and Washington, D.C.

It offers traditional loan products such as conventional and government-secured loans as well as flexible non-qualified mortgages (non-QM loans) for borrowers with special circumstances.

Because Newrez only has branches in select states, it uses technology to streamline and simplify the loan application process for remote borrowers.

Mortgage rates in Newrez

Lower mortgage rates can increase your purchasing power, help you get more home for your money, and reduce your mortgage payments.

However, interest rates vary from lender to lender, so it is important to shop around and compare rates.

In 2020, Newrez's average mortgage rates (30-year maturity) were around or slightly below some key competitors' levels. However, mortgage rates can vary widely from homeowner to homeowner.

Average 30-year mortgage rate from major lenders

Newrez
Rocket mortgage
Wells Fargo
Liberty mortgage

30-year average interest rate, 20201
3.20%
3.20%
3.62%
2.92%

Median total credit costs, 2020
$ 3,890
$ 4,610
$ 3,370
$ 3,340

Median creation fee, 2020
$ 1,300
$ 2,950
$ 1,280
$ 0

Newrez does not post current interest rates on its website. To get a mortgage quote, you need to complete a loan application and speak to a mortgage credit advisor.

Average interest and fee data from public interest and fee records required by the Home Mortgage Disclosure Act (HMDA).

Confirm your new price (August 4, 2021)

Newrez mortgage review for 2021

Many banks, credit unions, and mortgage lenders offer home loans. But not every financial institution has solutions for every buyer.

What's special about Newrez is that in addition to conventional and government-backed loans, it also offers other specialized products to accommodate borrowers.

Newrez's Non-Qualifying Mortgage Loans (Non-QM) are designed to help people with unusual uses such as:

Self employed borrowers who want bank statement loans

Non-QM loans can help these individuals get approved with alternative income verification documents. And these programs can have flexible credit guidelines as well.

Newrez loans are also unique because of their customizable loan terms.

While some lenders only offer 15, 20, or 30 year mortgages, a Newrez mortgage can have a non-traditional maturity of 18, 23, or 27 years. The lender has also made home loans and loans for real estate investors.

Collaboration with Newrez

When buying a home loan, visiting a lender's website for interest rate information is often the first step in the process. However, because Newrez does not openly advertise its plans online, you can only get this information from a credit counselor.

First, complete an application either online or through the lender's mobile app. Include whether you are interested in a purchase or refinancing, then provide personal and income information.

Once you have completed the application, you can use the lender's online portal to upload your supporting documents. This includes your most recent tax returns (two years), pay slips and bank / investment statements.

Once you've made an application, a Newrez credit counselor will be in touch to discuss your mortgage options.

Newrez customer service reviews

Newrez was not included in J.D.'s 2020 Mortgage Origination Satisfaction Study. Power added. And unfortunately, the limited customer reviews don't make the best first impression.

Newrez receives a ranking of 2.5 out of 5 on Trustpilot (based on 4 reviews) and receives 3 out of 5 stars on LendingTree.

On the plus side, Newrez didn't receive any customer complaints from the Consumer Financial Protection Bureau in 2020, according to the CFPB database.

Customer service with major lenders

CFPB Complaints, 20204
Complaints per 100 mortgages, 20205
JD Power Satisfaction Rating, 20206

Newrez

0
0.00
Not rated

Accelerate Loans
391
0.03
883 / 1,000

Wells Fargo
554
0.05
840 / 1,000

Liberty mortgage
288
0.04
817 / 1,000

Customers with positive credit experiences were mostly satisfied with their interest rates and loan fees. Others complained of poor customer service and responsiveness.

Of course, the experience is different for each applicant depending on the type of loan they need, their location, and the loan officer they are working with.

So, if you like Newrez's price and fees, it's worth taking a closer look at what you think of customer service yourself.

Mortgage loan products at Newrez

Newrez has a full line of new purchase and refinance mortgage programs with options for first time buyers, repeat buyers, and those seeking low down payment loans.

Here is a list of the mortgage options available at Newrez:

Conventional loan – Fixed and floating rate home loans with a down payment of only 3%. Available fixed-rate mortgage terms are 10, 15, 20, 25, or 30 years. You need a credit score of at least 660 to qualify. You can also buy a 2 to 4 unit property or a prefabricated house with conventional financingFHA loans – These government-backed loans require a 3.5% down payment and a minimum credit score of 580. You can take advantage of FHA funding for primary residences, including fixer-upper homes or prefabricated homesUSDA loan – These no down payment loans require a minimum credit score of 680 with Newrez. To qualify, you must have a low to middle income and purchase property in an eligible rural areaVA loan – VA home loans don't require any money either, but you do need a credit score of at least 660 to qualify with Newrez. Funding is available to active members of the military, veterans, National Guard, reservists and eligible spouses. Current VA homeowners can get a lower rate with a VA Streamline refinanceJumbo Loans – These loans exceed the compliant credit limit for an area and allow buyers to borrow millions for a home purchase or refinance. Jumbo loans typically require a minimum credit score of 700 and a 20% deposit

This company is an option for home buyers as well as current homeowners looking to refinance.

Refinancing involves applying for a new mortgage to replace an existing one. It can reduce your mortgage rate and monthly payment, and change other terms of your original loan.

Unfortunately, Newrez doesn't offer home equity loans or Home Ownership Lines (HELOCs). A cash out refinance is the only option if you are interested in getting cash out of your equity.

Where can I get a mortgage with Newrez?

Newrez is headquartered in Fort Washington, Pennsylvania and has more than 100 offices licensed in all 50 states and D.C.

States with physical Newrez branches include:

AL, AR, AZ, CA, DC, FL, HI, MD, MO, MS, NC, NH, NV, NY, OH, PA, SC, TN, TX and WI

If you live outside of a branch area, you can apply online, upload documents to the lender's secure portal, and receive your documents and closing package electronically for electronic signature.

Is Newrez the Best Mortgage Lender for You?

Newrez is worth considering if your primary interest is low interest rates and competitive loan fees. It can also be a good match if you have special circumstances and need an alternate document review.

This flexibility can help you qualify for a loan if you are a self-employed borrower, have credit errors, or need a finished or investor loan.

But while Newrez offers multiple loan options, the customer experience can be a little poor based on online reviews.

Regardless of your circumstances, you should compare at least 3-5 mortgage offers before deciding on a company to buy or refinance your home. Interest rates can vary widely depending on the mortgage lender and borrower, so you won't know who can offer you the best deal until you've seen personalized loan estimates.

Are you ready to shop for your best mortgage rate? You can start right here.

Confirm your new price (August 4, 2021)

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