Newrez Mortgage Review: A Comprehensive Look
Overview
Newrez is a national mortgage company that offers a wide range of loan products, including conventional, FHA, VA, and home equity loans. With a presence in all 50 states and several U.S. territories, Newrez is a popular choice for homebuyers and homeowners looking to refinance or tap into their home’s equity.
Key Benefits
Newrez offers several benefits that set it apart from other mortgage lenders. One of its strongest features is its 45-day rate lock program, which allows borrowers to lock in their interest rate for up to 45 days. Additionally, the lender offers a close-on-time guarantee, which pays eligible borrowers $5,000 if their loan doesn’t close on time. Newrez also provides a 0.50% closing cost discount for borrowers who use a real estate agent through the company.
Loan Options
Newrez offers a diverse range of loan products, including:
- Conventional loans
- FHA loans
- VA loans
- Home equity loans
- Purchase loans
- Refinancing
- Cash-out refinancing
- Fixed-rate loans
- Adjustable-rate loans
- Interest-only loans
- Investment property mortgages
What’s Missing
While Newrez offers a wide range of loan products, it doesn’t offer USDA loans, jumbo loans, or HELOCs. Additionally, the lender has no physical branches, and borrowers must apply online or over the phone.
Customer Satisfaction
Unfortunately, Newrez has a reputation for poor customer service. According to 2024 J.D. Power surveys, the company ranks below average in customer satisfaction for both mortgage origination and mortgage servicing.
Interest Rates and Fees
Newrez doesn’t advertise its interest rates, and borrowers must apply online or speak with a loan officer to get a rate quote. According to government data, Newrez’s rates and fees are higher than industry averages.
Online Resources
Newrez offers a range of online tools and resources, including mortgage calculators, a deep library of FAQs and blog posts, and a comprehensive guide to the mortgage process.
Comparison to Other Lenders
Newrez is similar to other national mortgage lenders like Freedom Mortgage and Pennymac. While it offers a wider range of loan products than Freedom Mortgage, it lacks USDA loans and jumbo loans. Pennymac, on the other hand, offers USDA and jumbo loans, but has a lower customer satisfaction rating.
Is Newrez Legitimate?
Yes, Newrez is a legitimate mortgage company that originates and services mortgage loans throughout the U.S. The Better Business Bureau has accredited the company, giving it an A+ rating. However, Newrez has faced a class action lawsuit in the past related to illegal inspection fees.
Conclusion
Newrez is a national mortgage lender that offers a wide range of loan products and some attractive benefits, such as its 45-day rate lock program and close-on-time guarantee. However, its poor customer service and higher-than-average rates and fees may make it less appealing to some borrowers. As with any mortgage lender, it’s essential to do your research and compare rates and terms before making a decision.
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