2019’s Best Mortgage Lenders

Updated August 2019

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No Application or Lender Fees

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Loan Purpose Credit Score

As Low As 2.75% APR

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Low Rates

Direct Lender or Marketplace

Marketplace

Direct

Direct

Minimum Credit Score

All

630+

630+

Minimum Down Payment

0%

20%

0%

Bottom Line

Compares Lenders in Seconds

Strong on fixed-rate loans

Fast Streamlined Application

Pros & Cons

Advertises rates

Non-conventional loans

Market-beating rates

Top Pro

Free to use

Promises to match best rate

Completely online lender

Top Con

Not a direct lender

Only fixed-rate loans

Only cash-out refinance option is available

Types of Loans

Fixed Rate

Adjustable Rate

Cash Out Refinance

HEL/HELOC

Jumbo

FHA

VA

USDA

Reverse Mortgage

Operations

Year Founded

1996

2013

2016

Headquarters

North Carolina

California

Michigan

States

50

12

50

Online

Physical Branches

Customer Support

Phone

Email

Live Chat

FAQ

In Branch

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View Online Offers & Get Your Credit Score for Free
As Low As 3.50% APR Fixed Rate
15 to 30 year fixed mortgage rate
Get up to 5 Free Quotes!

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10 to 30 Year Fixed Mortgage Programs
Complete Transparency about Rates & costs
No Application or Lender Fees

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Rocket mortgage

Variety of Home Mortgage Programs
Customizable Mortgage Solution
Speedy document and asset retrieval

Comparing the Top Mortgage Lenders

Whether you’re a first-time buyer or real estate investor, purchasing a new home is always challenging. Getting a mortgage can be stressful and complicated, what with all the rates, fees, and paperwork to worry about. Fortunately, this website contains guides and reviews to the best mortgage lenders in the business. We’ve found everything there is to know about the mortgage lending industry to save you the trouble.

Types of Mortgages

Conventional Home Loans

The most common form of mortgage is a conventional mortgage. These types of home loans involve two parties: the borrower (you) and a lender. Most lenders require borrowers to make at least a 20% down payment to get a conventional mortgage, with some exceptions. For example, if you purchase a home for $300,000, your lender will require you to pay down at least $60,000 and loan you the remaining $240,000.

FHA Loans

This is a government-backed loan administered by the Federal Housing Administration for buyers with poor credit or lack of funds for a 20% down payment. FHA loans come in two forms: 3.5% down payment for borrowers with credit of 580-619, or 10% down payment for borrowers with as low as 500-579 credit score. The one major catch of taking out an FHA loan is that you must purchase monthly private mortgage insurance (which you can stop paying once you reach 20% equity).

VA Loans

The VA loan is a government-backed loan administered by the Department of Veteran Affairs. Some lenders offer VA loans without any down payment. Like the FHA loan, monthly PMI is a condition of taking out a VA loan. The following people may apply for a VA loan: veterans who have served at least 90 consecutive days of active service in wartime or 181 days of active service in peacetime; members of the National Guard and Reserve who have served at least 6 years; and spouses of veterans who died in the line of duty or as a consequence of a service-related injury.

Other Loans

Other types of loans include:

Jumbo loans: These are conventional home loans that exceed the FHA’s limit. The limits actually vary based on geographic region, typically around $300,000 to $424,000.
USDA loans: Government-backed loans administered by the US Department of Agriculture. These are designed for people buying in rural areas. Like FHA and VA loans, they offer the option of buying with a down payment of less than 20%.
Home Equity Loans: Often referred to as a second mortgage, these are loans that let you borrow money against your home equity. The most common type is the home equity loan, or HEL. Another type is the home equity line of credit, or HELOC, which is like a HEL except the borrower can withdraw money up to a pre-set credit limit.
USDA loans: Government-backed loans administered by the US Department of Agriculture. These are designed for people buying in rural areas. Like FHA and VA loans, they offer the option of buying with a down payment of less than 20%.
Home Equity Loans: Often referred to as a second mortgage, these are loans that let you borrow money against your home equity. The most common type is the home equity loan, or HEL. Another type is the home equity line of credit, or HELOC, which is like a HEL except the borrower can withdraw money up to a pre-set credit limit.
Cash-out Refinance: This is a type of mortgage refinancing option that lets the borrower turn some of their home equity into cash. Because this option lets borrowers “cash out”, so to speak, cash-out refinance is often a viable option to a home equity loan.

Types of Rates

Fixed-Rate Mortgages

This is the more popular of the two options, especially among first-time home buyers. Fixed-rate mortgages are mortgages with fixed rates for the entire duration of the loan. When you take a fixed-rate mortgage, you pay more in year one than you would if you took an adjustable-rate mortgage. However, your rate never increases (nor decreases), meaning you can plan exactly how much you’ll pay in monthly instalments across the life of the loan. Once you’re locked into a fixed rate, you’re protected when the Fed and the banks start raising rate.

Adjustable-Rate Mortgage

Adjustable-rate mortgages, also known as ARMs or variable-rate mortgages, carry higher risk and higher reward than fixed rates. ARMs are always cheaper than fixed-rate mortgage in year one, but they carry the risk of higher interest rates in future years. ARMs have two components: the number of years your introductory rate applies; and the intervals at which rates get updated. Most lenders offer ARMs of 3/1, 5/1, 7/1, or 10/1. A 3/1 ARM refers to an ARM with a fixed rate for the first three years and a rate update every year after that. The shorter your fixed period, the better your introductory rate (and the riskier the loan). Because of their unpredictable nature, ARMs are best used by borrowers with high risk appetite or with the intention of paying off their mortgage quickly.

Top 3 Mortgage Lenders

#1

Pros

Free comparison tool

Pre-qualify for multiple lenders

Entirely online service

Cons

Not a direct lender

Contact details required

VIEW RATES
LendingTree is the internet’s largest loans marketplace. Founded in the 1990s, this service has helped millions of people get pre-qualified for all types of loans including mortgages. LendingTree works with a network of more than a hundred lenders to help its users find the best mortgage for their needs. To use the service, just provide a few details about yourself and the type of home loan you’re looking for, and LendingTree’s automated search tool will show you the best results.

LendingTree is a great place to start if you’re looking to find market-beating rates. Like other marketplaces, the secret to its success is competition. By gathering all the top lenders in one place, LendingTree forces each provider to compete on rates and fees – to the benefit of the borrower (you). Where LendingTree stands out from the crowd is in its sheer size. It works with a huge network of trusted lenders from around the country to help gets its customers the lowest possible rates.

How to Compare Mortgages

Here are some of the things to look for when comparing lenders:

APR: Your APR, or annual percentage rate, is the rate you pay each year based on interest rate plus lender fees. The lower the APR, the less interest you pay each year.
Terms: Loan duration, or term, is just as important as APR. Most lenders offer terms between 10 and 30 years. The shorter the term, the higher your monthly payments but less you’ll pay in interest over the life of the loan. The longer your term, the lower your monthly payments but more you’ll pay your lender in the long run.
Customer service: Customer service is always important, but even more so when we’re talking about six-figure deals. Always search for a lender that is transparent about rates and fees, open about the requirements, and won’t waste your time dragging out the application process. In the digital age, all the top lenders offer the option of applying for a mortgage and uploading documentation online.

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