The Top Online Mortgage Lenders: A Comprehensive Guide
In today’s digital age, getting a mortgage online is becoming increasingly popular. With numerous lenders offering online applications and competitive rates, it can be overwhelming to choose the right one. After conducting an in-depth analysis of over 40 nationally recognized mortgage lenders, we’ve narrowed down the list to the top online lenders that stand out from the rest.
Better Mortgage: The Top Online Lender
Better Mortgage takes the top spot with an impressive 4-star rating. This 100% online lender offers a full range of conventional and government loans for home buying and refinancing, as well as a home equity line of credit and cash-out refi options. With its “One Day mortgage,” you can submit your financial information and receive a loan commitment within 24 hours. Better’s low interest rates and lower total loan costs make it an attractive option for borrowers.
Rate (Guaranteed Rate): A Close Second
Rate (formerly Guaranteed Rate) earns a 3.8-star rating for its innovative approach to mortgage lending. This lender offers non-qualified mortgages for borrowers with alternative credit data, as well as interest-only payment options. Its PowerBid Approval service speeds up the preapproval process, giving you 90-day house-hunting flexibility. Rate’s high rating for Affordability and loan options makes it a strong contender.
loanDepot: Cash Incentives and More
loanDepot takes the third spot with a 3.4-star rating. This lender offers cash bonuses to customers who use associated real estate agents through its “mellohome” program. Additionally, loanDepot guarantees to close a loan on time or pays both the buyer and seller $1,000. Other benefits include discounts on security systems, moving services, and smart home products.
Ally Bank: A Leading Online Bank
Ally Bank earns a 3.4-star rating for its transparent and competitive mortgage rates. This online bank offers lower-than-median interest rates and total loan costs, making it an attractive option for borrowers. Ally’s extensive selection of educational resources and rate transparency make it a strong contender.
Rocket Mortgage: Innovative Mortgage Options
Rocket Mortgage rounds out the top five with a 3.06-star rating. This lender offers innovative mortgage options, such as its One+ mortgage program, which reduces down payments to 1%. Additionally, Rocket’s mortgage buydown program can temporarily reduce your interest rate for the first two years.
What to Consider When Choosing an Online Mortgage Lender
When shopping for an online mortgage lender, it’s essential to compare multiple lenders by getting preapproval offers to find the best fit. Look for “junk fees” and discount points you didn’t realize were added to the loan. Pay special attention to the annual percentage rate, which includes both the interest rate and fees. Don’t exclude shopping at brick-and-mortar lenders, as they may offer interest rate concessions or fee discounts to existing customers.
Methodology
Our methodology involves reviewing and scoring mortgage lenders based on five primary categories: interest rates, affordability, loan costs, rate transparency, and online features. We also analyze regulatory actions and consider consumer mortgage-related administrative or enforcement actions within the past five years.
By considering these top online mortgage lenders and factors, you’ll be well on your way to finding the best mortgage option for your needs.
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