End-to-end digital financing is a specialty of online mortgage lenders. They allow you to be pre-approved, submit your loan paperwork, and sometimes even finalize the deal without having to visit a physical location.
Some internet mortgage lenders might provide lower-than-average interest rates and fees due to their minimal overhead expenses. However, expenses and mortgage rates differ for each borrower, so search around.
The Best Online Mortgage Lenders In 2021
Quick Jump to:
- Excellent Client Service and Cheap Interest Rates on Average: Guild Mortgage Co.
- Customer Service at Its Finest: Movement Mortgage
- Average interest rates are the lowest available. AmeriSave
- Torch Award for Ethics Winner: New American
- Interest Rate is relatively higher: NBKC
- Online resources that are really useful: Guaranteed Rate
- For Qualifying Borrowers, Grants available. Bank of America
- A wide range of lending choices are available. Caliber Home Loans
- Current Members Receive Discounts: SoFi
- Low avg. interest rates, VA loan specialist: Veterans United
- VA loan low interest rates: Freedom Mortgage
- How did we pick the top online mortgage lenders?
1. Excellent Client Service and Cheap Interest Rates on Average: Guild Mortgage Co.
In our study of online customer evaluations, Guild Mortgage Company received a flawless 5.0 rating. That speaks a lot about the company’s offers and service standards.
The average mortgage rate in Guild for 2020 was not among the lowest on our list. However, it was significantly lower than the average.
As a result, this is a fantastic all-arounder. And it’s no surprise that Guild topped both our list of the Best Mortgage Lenders and our list of the Best Online Lenders.
Guild may be worth a look if you’re looking for a low-cost mortgage with a simple online application process.
2. Customer Service at Its Finest: Movement Mortgage
In terms of online customer reviews, Movement Mortgage tied with Guild with a flawless 5.0. So it’s apparent that the company’s current consumers adore it.
Borrowers may be confident in their decision to deal with Movement Mortgage. Because all of the company’s revenues go to the non-profit Movement Foundation, which distributes them to charities.
The only reason Movement was pushed into second place in 2020 was because of its somewhat higher average mortgage rates. Lenders that are willing to engage with borrowers with bad credit might distort averages. So, if you have strong credit and good down payment, there’s no reason to assume Movement won’t give you a decent bargain.
To put it another way, you won’t know how good of a bargain you can get unless you check.
3. Average interest rates are the lowest available. AmeriSave
With the lowest average mortgage rate in 2020 of all the companies on our list, AmeriSave lives true to its name. And for many people, that is all they will need to know.
Yes, we are disappointed with AmeriSave’s online consumer reviews. No lender, on the other hand, reaches our list if we believe its customer service is a major problem.
And many people are willing to put up with small inconveniences in exchange for such inexpensive prices.
4. Torch Award for Ethics Winner: New American
New American Funding (NAF) receives a near-perfect 4.9 in our study of internet consumer evaluations. It also received the prestigious Better Business Bureau Torch Award for Ethics in 2019.
In 2020, NAF’s average mortgage rate was higher than some. However, this might be owing to its desire to assist candidates with less-than-ideal financial situations.
You won’t know how excellent a rate NAF can provide you unless you get a quotation. This is true for all of the lenders on our list.
5. Interest Rate is relatively higher: NBKC
Another lender with a near-perfect 4.9 in our study of online customer evaluations is NBKC (a.k.a. National Bank of Kansas City).
Don’t be deterred by the name. NBKC has lending licenses in all 50 states. Despite the fact that it only has four locations, you’ll definitely wish to use its online services and telephone assistance.
In 2020, the average mortgage rate in NBKC was higher than the majority of the cities on our list. However, by industry standards, this is still a relatively low figure. If you ask for a quote, you could find that you beat the company’s averages.
6. Online resources that are really useful: Guaranteed Rate
“We invented the world’s first digital mortgage, so simple that an application takes less than 15 minutes,” claims Guaranteed Rate. It’s also well-known for its cutting-edge technology.
Guaranteed Rate’s average mortgage rate for 2020, as well as its online customer review scores, are both in the middle of our list. However, we’ve compiled a list of the best of the best.
And, as with all of these lenders, you won’t know how good of a deal you’ll receive unless you ask for one.
7. For Qualifying Borrowers, Grants available. Bank of America
Big-name banks don’t usually appear on lists of the best mortgage lenders. Bank of America, on the other hand, is an exception because it has certain unique products.
BofA offers cash house purchase help to qualified borrowers in select states, in addition to its attractive “Digital Mortgage Experience.”
Some homebuyers may be eligible for up to $7,500 in closing costs help and up to $10,000 in down payment assistance. Existing Preferred Rewards customers may be eligible for a fee reduction from the bank. Terms and conditions for all of these can be found on Bank of America’s website.
On our list, Bank of America’s typical mortgage rate in 2020 and its online customer review score are both in the middle.
8. A wide range of lending choices are available: Caliber Home Loans
Caliber Home Loans claims to be able to “take qualifying borrowers from application to closing in record time – as low as 10 business days” thanks to its innovative technology. If you have a simple application and are in a hurry, this can be your best option.
Caliber has a higher average mortgage rate in 2020 than the other companies on our list. It also had one of the lowest online consumer review scores.
Caliber, on the other hand, is a significant and well-known lender. If you apply, you might find that it gives you a low rate.
9. Current Members Receive Discounts: SoFi
In 2021, SoFi (Social Finance, Inc.) celebrated its tenth anniversary. However, it already has over 2 million members and has backed more than $50 billion in mortgage loans.
So it’s evident that it’s getting a lot of things correct. If you’re already one of SoFi’s 2 million members, you might be eligible for a $500 discount on your mortgage closing expenses.
In 2020, SoFi’s average mortgage rate was greater than the majority of the other companies on our list. Its customer review score was also lower than some. However, as we always recommend, request a quote to check if this lender can provide you a better-than-average deal. It’s possible that this is the best you can get.
10. Low avg. interest rates, VA loan specialist: Veterans United
specialized (and is the market leader) in VA loans, which are offered solely to military veterans, active-duty military personnel, and a few other closely connected organizations.
Other government-backed loans are available. However, it is evident that it is aimed at veterans and active-duty service members.
Veterans United had the third-lowest average mortgage rate among those on our list in 2020, which is exactly what it should have been. Rates on VA loans are often lower than those on other types of mortgages. VU also performed admirably in the J.D. Power 2020 U.S. Mortgage Satisfaction Study, finishing third overall.
If you’re looking for a VA loan, Veterans United is a sure bet on practically every short-term loan.
11. VA loan low interest rates: Freedom Mortgage
Another company that specializes in VA loans is Freedom Mortgage. However, it is more willing to cooperate with borrowers who are experiencing financial difficulties than Veterans United.
If your credit score is as low as 600, Freedom will evaluate your VA loan application, however, Veterans United often requires a 640 minimum. Despite this, in 2020, Freedom had a lower average mortgage rate than Veterans United. That was the second-lowest average rate on our list.
If you need a VA loan, get quotes from both Freedom and Veterans United to determine who can provide you the best price.
How did we pick the top online mortgage lenders?
The following criteria were used to select the best online lenders:
- Rates and fees — Based on each lender’s 2020 averages submitted to the government
- Flexibility — Each lender’s minimum credit score and down payment requirements
- Loan options — The breadth of each lender’s mortgage product portfolio
- Customer service — Based on customer reviews and ratings on public, online forums such as Zillow, Bankrate, and LendingTree
Of course, looking for a home loan is a very personal experience. And you’ll naturally be more concerned with some criteria than others.
If you have a good credit history, for example, a lender with a high minimum credit score won’t bother you. If you’re looking for a USDA loan, your options may be limited to organizations that specialize in this type of credit.
Mortgage rates and fees, on the other hand, are likely to be a source of stress for everyone. Most people should pay attention to the customer service ratings of each loan.
To locate one that suits you, research around and acquire rate quotations from a couple of the best online mortgage providers.
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