Best Mortgage Lenders Review 2024: Compare Top Options, Rates & Features
Finding the right mortgage lender can save you thousands of dollars over the life of your loan. With dozens of lenders competing for your business, it’s essential to compare not just interest rates, but also fees, customer service, loan options, and closing times. In this best mortgage lenders review, we break down the top national and online lenders, compare their pricing and features, and give you actionable tips to choose the best fit for your home purchase or refinance.
Why This Best Mortgage Lenders Review Matters
Your mortgage is likely the largest debt you’ll ever take on. Even a 0.25% difference in your interest rate can add up to tens of thousands of dollars in extra interest over 30 years. But rate isn’t everything. Hidden fees, slow processing, poor communication, or limited loan programs can derail your homebuying experience. This best mortgage lenders review focuses on lenders that combine competitive pricing, transparent fees, strong customer support, and a wide range of loan products.
Top Mortgage Lenders Compared
Below we examine five of the best mortgage lenders in 2024. We compare their typical rates (as of Q1 2024), average closing costs, minimum credit scores, loan types, and standout features.
1. Rocket Mortgage (Quicken Loans)
- Typical APR: 6.75% – 7.25% for 30-year fixed (varies by state)
- Average Closing Costs: $3,000 – $5,000
- Min. Credit Score: 620 (580 for FHA)
- Loan Types: Conventional, FHA, VA, jumbo, refinance
- Standout Features: Fully digital application, “Rocket Mortgage” mobile app, fast preapproval in minutes, excellent customer service ratings (J.D. Power #1 for 8 consecutive years)
- Best For: Tech-savvy borrowers who want a seamless online experience and quick turnarounds.
Rocket Mortgage is a household name, and for good reason. Their technology makes the application process painless. However, their rates are sometimes slightly higher than online competitors, and they charge origination fees that can add up. For borrowers who value speed and convenience over the absolute lowest rate, Rocket is a strong choice.
2. Bank of America
- Typical APR: 6.65% – 7.10% for 30-year fixed
- Average Closing Costs: $2,500 – $4,500
- Min. Credit Score: 620 (conventional); 580 (FHA)
- Loan Types: Conventional, FHA, VA, jumbo, doctor loans, affordable loan program
- Standout Features: $0 down payment program for eligible buyers in certain communities, relationship discounts for existing Bank of America customers (up to $600 off closing costs), extensive branch network
- Best For: First-time homebuyers, low-income borrowers, and existing Bank of America customers.
Bank of America shines with its community lending programs and relationship pricing. If you already bank there, you can save on fees and possibly get a better rate. Their online application is solid, but the process can be slower than fully digital lenders.
< h3>3. LoanDepot- Typical APR: 6.50% – 6.95% for 30-year fixed
- Average Closing Costs: $2,000 – $4,000
- Min. Credit Score: 600 (conventional); 580 (FHA)
- Loan Types: Conventional, FHA, VA, jumbo, renovation loans, non-QM (bank statement loans)
- Standout Features: Low rates, low fees, “mello smartloan” technology for fast underwriting, strong for self-employed borrowers (bank statement loans)
- Best For: Rate-conscious borrowers, self-employed individuals, and those who want a fully digital but more flexible lender.
LoanDepot often undercuts bigger lenders on rate and fees. Their technology is nearly as smooth as Rocket Mortgage, but they offer more niche loan products. Customer service ratings are above average, though some users report slower processing during peak times.
4. Wells Fargo
- Typical APR: 6.70% – 7.15% for 30-year fixed
- Average Closing Costs: $2,800 – $5,000
- Min. Credit Score: 620 (conventional); 580 (FHA)
- Loan Types: Conventional, FHA, VA, jumbo, renovation, adjustable-rate
- Standout Features: Extensive branch network, relationship discounts for existing customers, wide range of loan products, strong jumbo loan options
- Best For: Borrowers who want in-person service, existing Wells Fargo customers, and those seeking jumbo loans.
Wells Fargo is a traditional brick-and-mortar lender with a robust online platform. Their jumbo loan rates are often competitive, and their customer service is reliable if you prefer face-to-face interaction. However, their fees can be higher than online-only lenders, and their digital experience lags behind Rocket Mortgage and LoanDepot.
5. Better Mortgage
- Typical APR: 6.55% – 6.90% for 30-year fixed
- Average Closing Costs: $1,500 – $3,000 (often lower because they don’t charge origination fees)
- Min. Credit Score: 620 (conventional); 580 (FHA)
- Loan Types: Conventional, FHA, VA, jumbo, refinance
- Standout Features: No origination fees, no lender fees, fully digital process, transparent pricing, rate lock with float-down option
- Best For: Budget-conscious borrowers who want the lowest closing costs and a transparent, digital experience.
Better Mortgage is a disruptor in the space. By eliminating origination fees, they often save borrowers $1,000–$3,000 upfront compared to other lenders. Their rates are competitive, and their digital platform is excellent. The trade-off? Limited loan products (no renovation or non-QM loans) and less personalized support if you need hand-holding.
Pricing Comparison: What You’ll Really Pay
When comparing mortgage lenders, look beyond the interest rate. Here’s a breakdown of key pricing factors:
- Interest Rate vs. APR: The APR includes points, fees, and other costs. Always compare APRs.
- Origination Fees: Some lenders charge 1% of the loan amount. Better Mortgage charges $0. Rocket Mortgage charges around 0.5%–1%.
- Discount Points: You can pay points to lower your rate. One point = 1% of the loan amount. This can be worthwhile if you plan to stay in the home long-term.
- Third-Party Fees: Appraisal, title insurance, and recording fees are similar across lenders but can vary. Request a Loan Estimate (LE) from each lender to compare apples-to-apples.
- Rate Lock: Most lenders offer a 30- to 60-day rate lock. Some (like Better) offer a float-down option if rates drop, which can be valuable.
For a $300,000 loan, the difference between a 6.50% and 7.00% rate is about $100 per month, or $36,000 over 30 years. That’s why this best mortgage lenders review emphasizes comparing both rate and fees.
Features to Consider When Choosing a Mortgage Lender
< p>Pricing is critical, but features can make or break your experience. Here’s what to evaluate:- Digital Experience: Can you apply online, upload documents, and track progress from your phone? Rocket Mortgage and Better Mortgage excel here. Wells Fargo and Bank of America are adequate but less seamless.
- Customer Service: Look at J.D. Power ratings, Better Business Bureau (BBB) scores, and online reviews. Rocket Mortgage and LoanDepot generally score high. Bank of America and Wells Fargo have mixed reviews
