Compare The Best Mortgage Lenders
- RateShield® locks current rate for 90 days
- Offer that’ll cover 1% of your rate for a year
- Unique support for first-time homebuyers
- Credit score: 600
- Mortgage Types: finance, refinance, adjustable-rate, fixed-rate
- Min. Credit Score: 600
- APR dependent on credit score
- NMLS#: 3030
Read Rocket Mortgage Review »
- Closing costs rolled into loan automatically
- Smartphone app
- Syncs with your bank account for easy application process
- 98% of financial institutions supported for digital asset verification
- Can’t have face-to-face interaction with loan officer; online only
- No alternative credit data considered
- Lower rate for 90 days with “Lock & Shop”
- AmeriSave Certified Approval has your back
- 20+ years of experience with A+ BBB rating
- Credit score: 620
- Mortgage types: Purchase, refinance, adjustable, fixed, jumbo, FHA, VA, and USD.
- Minimum credit score: 620.
- NMLS#: 1168
Read AmeriSave Mortgage Review »
- Easy online application process
- Diverse loan options available
- Transparent information on their website
- 3% minimum down payment available
- Accurate quotes, not estimates
- $500 application fee
- Offers no program for first-time homebuyers
- Low down payments required of around 3%
- Dedicated to serving minorities
- Mortgages tailored to your credit rating
- Credit score: 620
- Mortgage Types: Variety of home purchase, equity, & refinance
- Min. Credit Score: 620
- APR dependent on loan type
- NMLS#: 6606
Read New American Funding Review »
- Manual underwriting available to evaluate credit
- One of the few non-bank lenders offering equity lending and reverse mortgages
- Can participate in the entire process online
- English and Spanish-speaking loan officers available
- No mortgages in Hawaii or New York
- Doesn’t work with down payment assistance programs in all states
- A large variety of mortgage options
- No hidden fees or prepayment penalties
- Members save $500 on processing fees
- Mortgage Types: conventional, refinance, jumbo
- Min. Credit Score: 660
- APR starting at 3.7883%
- NMLS#: 1121636
Read SoFi Review »
- SoFi offers conventional loans without private mortgage insurance (PMI) requirements with a 10% down payment
- The streamlined online process minimizes paperwork
- SoFi members get a 50% discount on origination fees
- SoFi is not licensed to originate mortgages in West Virginia, South Dakota, New York, New Mexico, New Hampshire, Missouri, Massachusetts, Hawaii, or Alaska
- Must live in the home or second home for at least 12 months.
- No FHA, VA, or USDA loans
- No down payment assistance programs
- Prequalify in just 3 minutes
- Actual rates from multiple lenders
- Complete the origination process online
- Mortgage Types: jumbo, conventional, refinance
- Min. Credit Score: 620
- NMLS#: 1681276
- 318 Blackwell Street Ste 120A, Durham, NC 27701
Read Credible Review »
- No fees to use Credible’s services
- Find out your actual rate without a hard credit check
- E-verification for many financial documents
- Credible doesn’t operate in several large states
- No face-to-face customer support
What Are the Different Types of Mortgages?
Conventional Mortgages: These are not backed by a government agency, such as the Federal Housing Administration (FHA) or the Department of Veterans Affairs (VA). Conventional mortgages are typically offered by private and online lenders and are available in various terms and interest rates. They generally require a higher credit score and a larger down payment than government-backed mortgages.
The lenders will review the borrower’s credit score, income, and assets to determine their ability to repay the loan. If the borrower is approved, the lender will provide them with a loan for the amount of the home’s purchase price minus the down payment. The borrower will then make monthly payments to the lender, including interest and principal until the loan is fully repaid.
Jumbo Loans: These mortgage loans exceed the maximum loan limits set by government-backed agencies, such as the FHA or VA. They are typically offered by private and online lenders and are designed for borrowers looking to purchase higher-priced homes. Jumbo loans often have stricter credit and income requirements and may require a larger down payment.
Portfolio Mortgages: These are mortgages held by the lender and not sold to other investors, unlike conventional and government-backed mortgages. Portfolio mortgages may have more flexible terms and credit requirements, but they are not as widely available as other types of home loans.
The private or online lender will review the borrower’s credit score, income, and assets to determine their ability to repay the loan. If the borrower is approved, the lender will provide them with a loan for the amount of the home’s purchase price minus the down payment. The borrower will then make monthly payments to the lender, including interest and principal until the loan is fully repaid. The lender will keep the loan in their portfolio instead of selling it to investors.
Non-QM Mortgages: These are mortgages that do not fit into the traditional Qualified Mortgage (QM) category and may have more flexible credit and income requirements. Non-QM mortgage loans are typically offered by private and online lenders and can include options such as interest-only payments or longer loan terms.
Today's Mortgage Loans Interest Rates
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|20-year fixed-rate||[Fixed20Year type=”rate”]%|
|15-year fixed-rate||[Fixed15Year type=”rate”]%|
|10-year fixed-rate||[Fixed10Year type=”rate”]%|
|7-year ARM||[ARM7 type=”rate”]%|
|5-year ARM||[ARM5 type=”rate”]%|
Last update: 01/06/23
How to Get a Mortgage
When applying for a mortgage, it is important to prepare in the following ways:
- Know and Build Credit Score
- Choose the Appropriate Mortgage Type
- Compare Multiple Lenders
- Get Pre-Approved
- Prepare Documents and any Other Necessary Paperwork
After the necessary preparations, the following steps can be taken to finalize a mortgage:
- Fill out a home loan Application
- Evaluate the Loan Estimates
- Choose a Lender and Commit
- Loan Processing
- The Loan is Cleared to Close
There are numerous factors that one would probably want to consider before applying for a mortgage, such as their financial well-being, consequences of a potential default on a real estate loan, and macroeconomic factors. Many people find it important to educate themselves on the step-by-step process of learning how to apply for a mortgage by continuing to research the preliminary obligations and expectations involved in mortgage loans so as to avoid becoming overwhelmed.
How Much Money Do You Need for a Mortgage Down Payment?
The amount of money needed for a mortgage down payment can vary depending on the type of loan and the lender. For conventional loans, a minimum of 3% to 5% of the total purchase price is typically required. For government-backed loans, such as FHA and VA loans, a smaller down payment may be required. In some cases, it’s possible to qualify for a mortgage with a down payment as low as 3.5%. However, putting more money down can result in a lower interest rate and potentially lower overall costs.
Traditional Lenders vs Online Mortgage Lenders
A primary benefit of choosing an online mortgage lender is convenience. There is no need to speak with an individual or step foot in a branch. Technology has simplified and enabled the availability of submitting all documentation electronically and completely online.
Additionally, many online lenders offer guidance throughout the process for those who may encounter issues along the way, just as a traditional lender would. The only difference is that it is done via online communication and phone calls.
With traditional lenders, the process may take longer due to the amount of paperwork involved. The online lending process is more streamlined and, in most cases, will require the paperwork to be completed from home.
Best of all, shopping around and comparing rates from the comfort of a desk chair at home has become even easier with online lending. Online lenders ask for some basic information to build a profile and provide access to relevant qualifying rates, making it easy to compare mortgages side-by-side and get the best rates on a mortgage. Moving forward with an offer can continue online.
How to Choose an Online Mortgage Lender
It is worthwhile to know the minimum qualifications set out by a given lender. Lenders set their standards based on borrowers’ credit scores, incomes, and more. One should become familiar with these qualifications to know what lenders would potentially be willing to offer. They are the factors that influence an applications’ success rate as well as the offered interest rate.
Mortgage repayment terms range from 15 to 30 years. Mortgages that have shorter terms have larger payment installations. Longer-term mortgages require smaller payments because payment installations are spread out over a longer period of time.
Since less interest is charged over shorter periods of time, shorter-term mortgages normally end up costing less. While longer-term mortgages give the option to make smaller regular payments, they often end up costing more money in the long run because the repayment schedule lasts longer, allowing for interest to accumulate over time.
Customer service is also a worthwhile consideration for selecting a good mortgage. Poor customer service is one of the most common complaints on neutral platforms like the Better Business Bureau. Platforms like the BBB may offer insights into other customers’ experiences with the lender in question.
Top Mortgage Purchase Lenders
Quicken Loans Best customer satisfaction and application process
|Mortgage types||Mortgage Purchase, Refinance, Jumbo, Fixed|
|Mortgage amount||Up to $3,000,000|
|Repayment terms||8-30 Years|
|APR||2.5% – 3.708%|
|Minimum credit score||620|
|Lender type||Direct Lender|
|Read full review|
AmeriSave Mortgage Large variety of loan programs
|Mortgage types||Purchase, refinance, adjustable rate mortgages, fixed, home equity loans|
|Mortgage amount||$60,000 to $1,500,000|
|Repayment terms||10, 15, 20, 25, 30-year (conventional and FHA fixed rates);15, 30-year (VA loans); 5, 7, 10-year (fixed terms for ARM rates)|
|Minimum credit score||620 (for conventional products);600 (for FHA, VA, and USDA loans)|
|Lender type||Direct Lender|
|Read full review|
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