Best Mortgage Products
Based on In-Depth Reviews

Best Online Experience

Screenshot Rocketmortgage.com, May 2021.

How to apply

The application process is simple, with questions leading consumers through each step. While a completely online experience may seem scary to some people, as though it may not offer enough support, Rocket does a good job of providing assistance, giving users the ability to chat in real time with a loan specialist.

The application process as we tested it is straightforward. It asks bite-sized questions about your loan needs and goals, personal assets, credit score, and other pertinent loan information in nine short sections. If you have all the answers at hand, the process takes less than five minutes. Keep in mind that the more accurate you are with the information you input, the more precisely the final loan package will be tailored to your needs.

Fees

Rocket Mortgage’s average origination fees are about 0.50% of the loan amount. Government-backed FHA and VA loans fees are slightly higher, but don’t go over 1% of the loan. These fees exclude any discount points you may want to purchase to lower your interest rate. Speaking of rates, it’s impossible to see prevailing rates on the Rocket website, as consumers can only access these after creating an account and entering some information. 

Screenshot Rocketmortgage.com, May 2021.

Customer Experience

As is typical in the mortgage industry, customer sentiment about Rocket is mixed. Positive feedback emphasized the efficient process and good customer support, while negative comments cited an impersonal touch, which is not surprising due to the company’s large size and the very nature of its online experience. Rocket Mortgage does offer an online Learning Center that has very comprehensive resources consumers can use to learn about the mortgage process. Purchasing a home is difficult, and we think it’s a plus when companies address this need.

Fast Closing Times

Better is a fast-growing digital-only mortgage company that, as of this writing (June 2020) is funding $700 million a month. Since the company's online experience effectively does away with loan officer commissions, lender origination fees, application fees, and underwriting fees, Better affirms that it saves each customer an average fo $3,500 in fees. Additionally, Better claims that it can close a mortgage in just 21 days, as opposed to the industry average of 42-50 days. 

Screenshot better, May 2021.

How to Apply

Applying for a mortgage with Better is straightforward. You're first given the option of choosing between a new mortgage or a refinance. Once you've been directed into a pre-approval funnel, you're guided through a series of questions, such as how far along you are in your mortgage process, when you plan on purchasing, where you're looking, and the type of property you're interested in. Subsequent steps are fairly standard, such as a soft credit pull, registration on the site, and other relevant information. The interface is easy to follow, but if you run into any problem areas, each page has a convenient chat box for assistance. Otherwise, users can also call or email for help 7 days a week, from 9am to 9pm EST.

Fees

As we mentioned above, Better's entire premise is predicated on being able to obtain a quicker mortgage process for consumers, with fewer fees. Therefore, the company consistently offers competitive rates and substantially lower fees, helped in part by completely eliminating a brick and mortar infrastructure. They also offer a "Better Price Guarantee," which states:

"If we can’t beat a competitor’s price, we’ll give you $100. If you think another lender has a more competitive price, send us their loan estimate within one business day from the date on the loan."

Of course, this offer does come with some caveats, as seen in the accompanying fine print, but they're essentially what you'd expect. For instance, if you prove that Better and another company offered the same rate and loan terms, but the other company offered lower closing costs, you'd get that $100 check—but only if you present evidence that you took the other company's mortgage. And of course, Better will not honor the guarantee in any state where they don't originate loans.

Customer Experience

We especially liked that Better has up-to-date articles on the mortgage market, home buying, and refinance on its site, as well as several tools to help consumers navigate the complicated, and sometimes intimidating, mortgage process. They also have some explanatory videos which can be useful for more visual learners. And, you can even subscribe to rate tracking.

Screenshot better, May 2021.

On the other hand, Better is somewhat limited, still, in the number of states where it originates loans. Homebuyers from Nevada, Massachusetts, New Hampshire, Vermont, Virginia, Hawaii, and Minnesota aren't eligible. The lender also limits its offers to just new mortgages and refinancing, without including USDA or VA loans, or any home equity products. Finally, the very things that lower your costs (namely, the lack of physical locations) means that people who prefer to apply in person should consider other options.

PennyMac also focuses on online and over-the-phone service, with few physical locations around the United States, though it’s one of the country’s largest non-bank mortgage originators, PennyMac has over 1.5 million home loan customers. While you can submit your documents electronically, and there’s online customer support, the company mainly services borrowers via several call centers staffed with loan officers who help guide consumers through the process. Each loan officer holds an average of 14 or 15 state licences, each of which requires continuing education for recertification-- keeping PennyMac’s representatives up to date with the industry.

Screenshot from Pennymac.com, May 2021.

The lender doesn’t have a minimum income requirement, making it a good choice for lower-income borrowers. However, consumers should be aware that PennyMac may charge an application fee and an appraisal deposit. Finally, we liked that the company offers resources and tools for homebuyers, such as calculators, a mortgage learning center, and a home value estimator.