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Top 10 Mortgage Companies Review for 2016

4 Rental property companiesIn America, there are a huge number of mortgage companies which give a wide array of mortgage loans.

These loans include the Jumbo loans, mortgage origination loans, fixed and adjustable rate mortgage loans, FHA, VA, USDA, RHS, and conventional mortgage loans.

The help of a mortgage company is required irrespective of whether you are a first-time home buyer or a real estate investor or even a landlord looking for rental property companies.

Mortgage firms help in many tasks related to the property purchase which includes securing funds in the form secured loans against property (residential or commercial), refinance existing loans, loan modification, etc.

At times, the new terms may benefit the borrowers or even those with certain financial difficulties and refinancing these existing loans is a preferred option.

Most individuals seeking a mortgage loan prefer to work with established and renowned mortgage firms. Mortgage lending is very popular and is somewhere tied to the American dream of buying a home. These mortgage firms are some of the big businesses in the world. Few things to consider before choosing a mortgage lender are mortgage rate, terms, and stability of the company.

Read on to find out more on the top mortgage companies and a brief review of each.

What are some of the top mortgage companies in the US?

  • Quicken Loans
  • Wells Fargo Home Mortgage
  • Lending Tree
  • Citi Mortgage
  • Bank of America
  • JP Morgan Chase Mortgage
  • S Bank Mortgage
  • Nationstar Mortgage
  • PHH Mortgage
  • Freedom Mortgage

 

Each company has made a significant mark for itself in the mortgage industry and the above list showcases some of the topmost mortgage firms in the United States, in no particular order.

 

  • Quicken Loans:

Quicken Loans is an online mortgage lender that has earned a good name and ranks among the top mortgage firms. It is one of the largest online retail lenders and is available across all states in the United States. It has multiple loan options and refinance options to suit the needs of different customers such as Fixed-Rate Mortgage, Hybrid Mortgage, FHA Loans, and Cash-Out Refinance. They have one of the lowest rates.

What are the pros?

  • Has a streamlined loan process.
  • A + rating from BBB
  • Uses credit score to determine eligibility for specific loans and interest rates.
  • Provides private mortgage insurance to people who have made less than 20% down payment.
  • Flexible loan programs.
  • Powerful online tools.

What are the cons?

  • It doesn’t provide construction loans or home equity financing.
  • Rates vary greatly depending on the loan situation.

  

  • Wells Fargo Home Mortgage:

4 First-time home buyersIt is an internationally recognized name among the mortgage companies, providing mortgage and Home equity loan solutions. The mortgage loan products offered by Wells Fargo Mortgage include

  • fixed-rate loans
  • adjustable-rate mortgages (ARMs)
  • Federal Housing Administration (FHA) loans
  • Veteran Affairs (VA) loans
  • Renovation loans and programs
  • new construction loans
  • Jumbo loans
  • Military mortgage loans
  • Home Affordable Refinance Programs (HARP) and
  • Home equity line of credit.

It is one of the few banks that offer construction loans, making it the right choice for home buyers. Though risky for the banks as the usual equity is on the bank itself, Wells Fargo Mortgage offers these conventional and government program loans.

The rates offered for a 30-year fixed rate loan stands at 3.875% and an annual percentage rate (APR) of 3.904%.  The 15-year fixed rate loan is offered at an interest rate of 3.125% and an APR of 3.176%.

What are the pros?

  • A+ rating with BBB
  • Offers construction loans with a rate lock program

What are the cons?

  • Interest rates are much higher when compared to other lenders.

 

  • Lending Tree:

Lending Tree has a range of loan services such as mortgage loans, mortgage refinances, personal loans, auto loans, business loans, student refinances, etc. Lending tree is a broker which connects lenders with loan offers and borrowers.

When applying for a loan through Lending Tree, competitive loan offers from different lenders are given to the borrowers. It stands among the top companies, as it offers a wide choice of interest rates from different lenders, and the customer can choose the best rate for a mortgage, terms, and fees that fit the individual needs.

What are the pros?

  • A+ Rating with BBB
  • Interest Rates as low as 2.65% APR for a 15-year term
  • Compare quotes from 5 lenders at the same time
  • Time saving
  • Allows low credit scores

What are the cons?

  • Has a slower approval process
  • Loan funding can take up to 3 days.
  • After getting a lender, Lending tree no longer comes in the picture. Borrowers should deal with the lenders.

 

  • Citi Mortgage:

One of the largest financial institutions, CitiGroup’s division is the Citi Mortgage. It offers a variety of loan products to home buyers. These include interest-only and construction loans at certain branches. The interest rates and fees are generally lower. CitiMortgage promotes the government-sponsored Home Affordable Refinance Program (HARP).

Even without any equity, existing customers can refinance to a lower rate with the HARP program.

What are the pros?

  • Widest range of loans at very competitive rates.
  • Offers interest-only and construction loans through certain branches.
  • Offers pre-approval without any special fees.

What are the cons?

  • It has an application fee charge.

 

  • Bank of America

Bank of America was established in 1784 as the Massachusetts Bank. Since then steady growth over centuries through mergers and acquisitions has led to Bank of America that is today, stands as one of the top-tier bank offering mortgage services and products.

Bank of America offers a range of fixed and adjustable rate mortgage loans and also some of the government sponsored programs. Bank of America offers excellent customer service and multiple options; however, they charge a higher fee at the time of closing the mortgage.

What are the pros?

  • Excellent customer service.
  • Quick loan approval.
  • Offers wide range of loan options
  • Knowledgeable and helpful loan officers
  • Very useful online resources.

What are the cons?

  • Higher mortgage fees.

 

  • JP Morgan Chase Mortgage

4 Mortgage companiesJPMorgan Chase has a long history of over 200 years in the United States and is one of the oldest financial institutions. They operate in more than 100 countries. It is a leader in investment banking, mortgage, and other financial services.The product portfolioincludes fixed rate mortgage loans, Adjustable-rate mortgage (ARM), Jumbo mortgage, FHA mortgage, Home Affordable Refinance Program (HARP), Veterans Affairs (VA), Dream maker mortgage.

What are the pros?

  • Great ease and efficiency of using loan application platform.
  • The mortgage cash back program allows the customer a choice for automatic deduction of the mortgage payment from the JP Morgan Chase personal account and customers get up to $500 each year for the life of the program. This cash can be withdrawn at the end of the year or pay down principal.
  • Offers a range of HELOCs to help finance a big renovation or long-term project, very easily.

What are the cons?

  • It does not offer home equity loans.

 

  • US Bank Mortgage:

U.S. Bank is the 5th largest bank in Unites states offering a wide range of financial services and products. The loan products offered by U.S. Bank include fixed rate mortgages, adjustable rate mortgages, FHA loans, VA loans, construction loans, and jumbo loans. U.S. Bank is the main subsidiary of U.S. Bancorp, headquartered in Minneapolis, Minnesota.

The online pre-qualification process here is quite simple and it takes a few minutes to be able to prequalify for a loan through US Bank Mortgage. This helps the borrower understand the limit up to which loans can be taken without impacting the credit score.

Here, a good credit score is of utmost importance and a main component in the mortgage application review process. Borrowers can make use of U.S Banks’ many calculators to find out the loan eligibility and at the same time estimate the monthly payments. 

What are the pros?

  • Offer wide range of products and services, including construction loans.
  • Attractive lower than average interest rates.
  • Very helpful online resources.
  • Does not charge application fees.
  • Can waive off down payment for military members.

What are the cons?

  • Poor customer service
  • High bank fees
  • Slow response
  • Does not offer home equity loans.

 

  • Nationstar Mortgage:

Comparatively, it is a new entrant into the mortgage market. Nationstar Mortgage has a nationwide presence and offers all types of home loans such asjumbo loans for high-value properties, conventional loans, VA mortgages, HUD loans for low-income borrowers, and USDA loans on rural properties. HARP loans were offered by Nationstar Mortgage right from the commencement of the program.

It provides a convenient online access to the application, verification of documents and current account status for customers.

What are the pros?

  • Provides jumbo loans up to $ 2 million.
  • Provides loans for rural properties.
  • It pays for the appraisal.

What are the cons?

  • Problematic call center.
  • Reasonably difficult to reach out to a loan agent.
  • It does not provide construction loans.
  • It charges bank fees during closure of the loan.
  • Loan rates are somewhat higher when compared to others.

 

  • PHH Mortgage

PHH mortgage is the largest originator in retail mortgages. It offers a wide range of mortgage products, which includes a 40 year fixed rate loan. With an online pre-approval application, prospective homebuyers can gauge the type of loan that they are eligible for. The mortgage rates are quite competitive. It offers two specific guarantees on whether the loan is approved or not and the closing date.

What are the pros?

  • Offer awide range of products and services.
  • Has a specific program for people with poor credit.
  • Very helpful online resources.

What are the cons?

  • Poor customer service.
  • Has a payment administration issue.
  • Slow response.
  • Does not provide home equity loans.

 

  • Freedom Mortgage

Freedom Mortgage is a small mortgage is among the smaller mortgage firms in the United States that is slowly making a place for itself in a market predominantly occupied by the bigger players in the industry.

Started in 1990, they have a significant share in the market currently and offer regular mortgage loans, as also construction loans and second mortgages. It has both retail and commercial clients and has recorded an impressive growth over the last few years. It is one of the largest VA vendors and also has FHA loans in its portfolio.

What are the pros?

  • It has an above average rating,
  • It provides loan services to commercial establishments.
  • A rating by BBB

What are the cons?

  • Poor customer service.
  • Problems related to online payment status.
  • It has physical locations only in 15 states and a direct face to face time is sometimes a problem because of lack of physical locations at certain places.

 

A quick glance at the tables given below shows the different types of loans offered by the different mortgage companies:

 Types Of Loans

 Name of Mortgage Bank

Fixed-rate Mortgage

Hybrid Mortgage

FHA loans

Construction Loans

HELOCs

Traditional Home Equity Loan

Cash-out Refinance

Quicken loans

Yes Yes Yes No No No Yes

Wells Fargo

Yes Yes Yes Yes Yes No Yes

Lending Tree

Yes Yes Yes No Yes Yes Yes

Citi Mortgage

Yes Yes Yes Yes (in a few branches) Yes Yes Yes

Bank of America

Yes Yes Yes No Yes No Yes

JP Morgan Chase

Yes Yes Yes No Yes No Yes

US Bank

Yes Yes Yes Yes Yes No Yes

Nationstar Mortgage

Yes Yes Yes No No No Yes

PHH Mortgage

Yes Yes Yes No No No Yes

Freedom Mortgage

Yes Yes Yes No No No Yes

 

There are several mortgage companies that offer different portfolios of loan products. A borrower has to weigh the advantages and disadvantages of each firm after a thorough and careful research and find the right mortgage firm that suits to his needs; depending on the rates offered and the terms. After all, purchasing a home is a large investment and a long term commitment.

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