Axos Bank is a San Diego-based online offering that proves a full range of different banking options. It was started back in 2000 using the name Bank of Internet USA, changing to Axos Bank in 2018. As well as offering the typical types of checking and savings accounts, Axos Bank also provides mortgages and mortgage refinancing to its customers.
This direct lender allows you to quickly see everything you need to know about refinancing your mortgage in a matter of minutes, with the application process completely online-based. This makes for a much more transparent and efficient experience. This review will look at all of the core aspects of refinancing a mortgage through Axos Bank.
|Mortgage types||Home Equity Loans, Home Equity Lines of Credit, Loans for Unique Investment Properties with at least five units, Interest-Only Mortgages, refinance mortgage (cash out & no cash out)|
|Repayment terms||Depends on the loan type|
|APR||Varies according to deal|
|Minimum credit score||620|
|Lender type||Direct Lender|
Axos Mortgage Loans: Pros
- Ability to get cashback of 3% on repayment annually.
- Borrowers can avoid paying a $995 lender fee.
- A fast closing period for a mortgage.
Axos Mortgage Loans: Cons
- No physical branches.
- Discounts & rewards only available when using certain Axos bank accounts.
The process of getting a quote initially from Axos Bank is very simple. You simply answer a few multiple-choice questions and you will be given a quote for your mortgage refinancing. These questions will be based on your personal finance, as well as the property in question.
If you are happy with the rate, you can then fill in the application form online. This requires all of the standard types of info, such as your Social Security number, details of the real estate in question, and so on.
Documents you’ll need include:
- Photo ID
- Pay stubs (from within the past 30 days)
- Personal tax returns
- W2s and 1099s from the past two years
- Records of assets and debts (savings accounts, student loans, etc.)
- Profit-and-loss statements (if self-employed)
If approved, you’ll wait for a loan office to continue the loan process.
Axos makes it a point to streamline the mortgage process. It aims to make things take as little time as possible. Closing often happens within 30 days — and sometimes less if you’re prequalified.
Terms & Requirements
When you visit the Axos Bank website and go to the mortgage refinancing section, all of the advantages to doing so with Axos Bank are clearly laid out for you. You will be able to align your refinancing with your specific goals, whether it is paying off a mortgage at a faster rate or lowering your monthly payment, and so on. It also provides a variety of different mortgage options depending on your needs.
When you are looking to submit an application for mortgage refinancing, you will be asked some basic personal finance questions initially. Axos Bank will generally look to only deal with people who have a credit score of at least 620, but certain products can be possible with credit scores of 580 and upwards.
For government-based loans, the minimum required credit score often rises to 680. The loan amounts on average range between $15,000 and $510,000, but jumbo loans are also on offer.
Here are Axos’ requirements for a mortgage purchase loan:
- Be a US citizen or permanent resident age 18 or older with a valid Social Security number
- Two years employment history
- 620+ FICO credit score
- No bankruptcy in past two years
- 3% down payment (more may be required depending on mortgage type)
Keep in mind that debt-to-income ratio is a significant part of your approval chances, not to mention terms. Pay off other debts while working on boosting your income if you’re uncertain about your approval chances.
Axos Bank currently offers a $0 lender fee for existing customers and it promises to offer some of the lowest repayment rates in the United States. Otherwise, this lender fee will be around $995 if the mortgage is worth at least $250,000 and $200 for a mortgage worth less than $250,000.
Between the likes of appraisal fees, homeowner insurance premiums, and surveys, Axos Bank mortgages can often have closing costs worth as much as 8% of the purchase price of a home. The fixed-rate terms vary between 10 years and 30 years and the minimum down payment is normally 3%. As a whole, the APR rates tend to be pretty competitive when it comes to refinancing a mortgage with Axos Bank.
Axos Bank offers to provide people with as much as 3% cashback when making their repayments through an Axos Bank Total Loan Rewards Checking Account. The longest-term mortgage that they will usually give out will be 30 years, which is similar to most of its competitors. There are more short-term options available if these are better suited to your situation.
Axos offers fixed-rate terms of 10, 15, 20, and 30 years. As for adjustable-rate mortgages (ARMs), terms are 10/1, 7/1, 5/1, and 3/1.
For reference, a 10/1 ARM means the interest rate is fixed for the first 10 years, then variable for the remainder of the loan.
If you repay your loan with your Axos checking account, you can earn 3% cashback on your mortgage payments (principal and interest) up to a $100 monthly total.
Privacy & Security
Axos Bank has been on the scene for many years and it has built up a solid reputation during the past couple of decades. With a Better Business Bureau rating of A+, this is a good sign that you are dealing with a legit lender. While the company does not have any physical branches, it is well-regulated and all deposit accounts are FDIC-insured.
Axos Bank also makes sure that the privacy of its customers is of utmost importance, particularly because of the online-only approach that is taken. It uses top-tier technology to make sure that all sensitive data is properly protected.
Axos Bank has a commitment to offering exceptional service to its client base. If you have any questions or queries regarding a mortgage, there is a team of professionals waiting on hand at Axos Bank to help you in any way possible.
As there are no physical branches for Axos Bank, some people will be disappointed that they cannot talk face to face with a mortgage expert. They will have to rely on a phone call. The customer support hours are usually 8am until 5am PST each day. There is the option to fill out a form from which you will get a call back from a loan consultant to discuss your query.
Axos Bank certainly has one of the best reputations in the online-only space, having developed a significant customer base since launching in 2000. As well as offering a wide variety of mortgage types, it has extensive refinancing capabilities, allowing people to find an optimal solution to their given needs.
Axos Bank has a good reputation and some great discounts available to those people who also avail of its banking offering. You can quickly get a free quote in a matter of minutes by heading over to their website, showcasing exactly what you can expect when you refinance a mortgage.
4350 La Jolla Village Drive
Refinance Rate and Term Rate and Term refinance loans may include the following amounts: Unpaid principal balance of the existing first lien. Non-recurring closing costs, points, and pre-paid items. Paying off 2nd lien mortgages – 12 months seasoning isn’t required. Rounded to the nearest $100, not to exceed applicable LTV ratios. Payoff of outstanding property taxes. Incidental cash to the borrower may not exceed $10,000. This includes payment of debts, property taxes, and tax liens. Refinance Cash-Out: Cash-out is not available on Texas Homestead properties (Texas 50 (a)( 6)), See “Calculating LTV” for guidelines to determine LTV on cash-out transactions. Properties listed for sale must be taken off of the market before obtaining a cash-out refinance.