This J.G. Wentworth mortgage review will provide you the vital information you need to know before you even sign a loan document with the company. This will help you understand every single detail about the product that they offer to help you come up with an informed decision in the end.
In a data published by the Economic Research of the Federal Reserve Bank of St. Louis, it states that as of the third quarter of 2019, the United States has a nearly $29.2 trillion total value of real estate owned by individual.
Meanwhile, the country, as of 2019 does have a total mortgage debt of $10.5 trillion, which means Americans do have $18.7 trillion in home equity.
Mortgage debt is one of the topmost types of loans in the country today, and experts believe the number of people getting mortgages will not decrease this year and in the years to come.
Well, that is not surprising because people, at the end of the day, want to have a home they can call their own. That is why it does not matter if they loan the money from the bank, or any other lending companies, for as long as they get to have their own space.
Now, just like any other types of loans, there are a lot of lending companies and/or financial institutions out there providing mortgage to individuals who need it.
With so many options, it can really get overwhelming sometimes. So, to help you trim down your options, today, we are going to do a J.G. Wentworth mortgage review.
J.G. Wentworth may not be as popular as other lenders out there, but this company definitely has what it takes to compete with other big names in the industry. Of course, it is not perfect, and we’ll tell you more about that as we go along with our review, but it’s worth checking out.
So, to keep you on track, we are going to particularly share information with you based on the following questions:
- Who is J.G. Wentworth?
- What kind of mortgage does J.G. Wentworth offer?
- What do borrowers need to know about J.G. Wentworth mortgage?
- Who qualifies for a J.G. Wentworth mortgage?
- How to apply for a J.G. Wentworth mortgage?
- What are the pros and cons of J.G. Wentworth mortgage?
WHO IS J.G WENTWORTH?
J.G Wentworth may not be a household name like its competitors, but it surely is, as we have said earlier, something to look into if you are planning to get a mortgage.
J.G Wentworth was founded in 1991 as a merchant bank. Yes, it’s been there for a long time now. From a tiny group, it has grown to a company with 600 employees to date.
Furthermore, the company offers a variety of products and services, which include personal loans, prepaid credit cards, as well as signature structured settlements, which is actually what the company is known for.
If you want to learn more about J.G. Wentworth’s structured settlement payments, you may check the below video created by the company:
From what it already offers, J.G Wentworth added mortgages into its product offerings in 2015. They did so after the company has acquired WestStar Mortgage Inc.
Based on the Consumer Finance Protection Bureau (CFPB) data, J.G. Wentworth Home Lending per se has originated more than 14,000 loans in 2015 alone.
Moreover, it has been found to have funded more than $10 billion in loans since its birth.
J.G. Wentworth offers various loan types such as conventional lending options, VA, USDA, and FHA loans.
If you are planning to buy a house and loan the money from J.G. Wentworth Home Lending, the company is currently headquartered in Woodbridge, Virginia. It has offices in 14 states, and can also be reached online.
WHAT KIND OF MORTGAGE DOES J.G WENTWORTH OFFER?
As a borrower, in this case, a mortgage borrower, it is important to know more about the different kinds of mortgage that lenders offer. This way, you get to learn and choose which fits you best.
If you are planning or looking at getting a mortgage from J.G. Wentworth, know that the company offers a number of options to choose from.
J.G. Wentworth offers several options not just for conventional loan customers, but also those with ow-to-moderate income and lower credit scores.
For your reference, here’s what you can expect from J.G. Wentworth:
- Fixed-Rate Mortgage
- Adjustable-Rate Mortgage
- Federal Housing Administration (FHA) Loan
- U.S. Department of Agriculture (USDA) Loan
- Veteran Affairs (VA) Loans
Now, let’s discuss each option further —
J.G. Wentworth’s fixed-rate mortgage is ideal for borrowers or home buyers who prefers to have predictable monthly payments. A fixed-rate mortgage means your principal, as well as the interest rate, won’t change over the course of the loan term. Usually, this type of loan is popular among homebuyers who plan to stay put for a long time.
For this type of mortgage, J.G. Wentworth offers 15-year or 30-year loan terms.
This type of loan literally “adjust” over a period of time. In this case, the interest rate will change after an initial fixed-interest period.
Normally, ARMs adjust the interest rate once a year once the initial period expires. Some homebuyers prefer this type of mortgage loan because of lower initial interest rates.
This type of mortgage is ideal for those who plan to sell the property after a few years. This helps you save the most on interest payments.
For this particular type of loan, the company offers three, five, or seven-year loan terms.
Federal Housing Administration (FHA) Loan
This type of mortgage is ideal for homebuyers who have a not-so-attractive credit history. Furthermore, this is also ideal for first-time homebuyers who do not usually qualify for a conventional loan.
For FHA loans, borrowers are given the option to pay only a 3.5% down payment, instead of the typical 20%.
U.S. Department of Agriculture (USDA) Loan
This particular loan type was created for borrowers or home buyers with low or moderate incomes who wish to have a home of their own in rural areas.
USDA loan does not require down payments, and it also offers lower fees and rates as compared to other types of loans out there.
Veteran Affairs (VA) Loans
Veteran Affairs (VA) Loans are specifically designed for current and former members of the U.S. Armed Forces, National Guards, as well as Reserves, and select spouses.
According to J.G. Wentworth, the company specializes in this type of loan.
Similar to USDA loans, VA loans do not require down payment as well. More so, it also does not include private mortgage insurance, and it comes with competitive rates.
The company features the federal government’s Home Affordable Refinance Program (HARP). Borrowers may apply for HARP only if they are not behind on their mortgage loan, closed on their loan before March 2009, and a few other qualifying factors.
WHAT DO BORROWERS NEED TO KNOW ABOUT J.G WENTWORTH MORTGAGE?
When borrowing money from a bank, a credit union, or an online lender, always make it a point to check every single detail possible. As we always say, make sure to shop around and compare features – at least three different lenders – to be able to choose the best option that fits your personal preference, and of course, your financial capabilities.
At this point in this J.G. Wentworth mortgage review, we are going to look into the following details:
- Loan Amounts
- Interest Rates
- Loan Terms
- Fees and Penalties
- Collateral Requirements
When looking for a mortgage lender, make sure to take into consideration the loan amount they offer. Make sure they are able to provide how much you actually need for the house you are eyeing to buy.
Also, considering this factor will help trim down your options, at the same time, will help ensure you won’t waste a time and effort.
With J.G. Wentworth, the company provides mortgage that ranges from $0 up to $765,600. Surely, every type of mortgage product does have a specific loan amount range. Thus, we highly recommend checking out directly with J.G. Wentworth how much they lend on a particular product.
Another very important thing to factor in is the interest that the lender charges. This will help you determine if you are capable of paying off the loan or not.
When shopping for a mortgage lender, ideally, you should look for the company that charges the lowest rate possible. That way, you get to save a lot of money.
Unfortunately, J.G. Wentworth does not provide specific rates or at least rate range. On their website, however, it says, “Your mortgage interest rate is personalized just for you.”
To put it simply, the company customizes the rates depending on certain factors — your credit score included.
If you want a rate quote from the company, you may do so by providing them minimal information, which in return will be the basis of what your possible rates could be. Once you have completed this process, and you find the rates within what you are hoping for, then you are given the option to proceed with the formal application online.
Loan terms refer to the length of time the borrower has to repay the loan. With J.G. Wentworth, loan terms vary depending on the product or service.
For your reference, see the below table:
|Type of Mortgage Loan||Terms|
|Fixed-Rate Mortgage||15 years, 30 years|
|Adjustable-Rate Mortgage||3 years, 5 years, 7 years|
|Federal Housing Administration (FHA) Loan||Not Stated|
|U.S. Department of Agriculture (USDA) Loan||Not Stated|
|Veteran Affairs (VA) Loans||Not Stated|
When it comes to loan terms, keep in mind that as a general rule, the longer the loan term is, the higher the interest rate will be. Meanwhile, a shorter loan means more money saved.
Fees and Penalties
Another factor to consider when shopping for a mortgage lender is the fees and penalties.
With J.G. Wentworth, once you are approved of a mortgage loan, you will then have to coordinate a closing date and continue with your loan officer until you get to finalize the details of the home purchase.
During the time of closing, borrowers are required to pay closing costs plus additional fees.
Borrowers need to set aside about 3% to 5% of the home price to cover fees like the origination fee, as well as other charges.
The loan officer should be able to discuss as well as breakdown all the fees you will be charged off to ensure you won’t get surprised with any fees and charges.
To give you an idea, according to NerdWallet, J.G. Wentworth charges an origination fee, which comes at a flat rate of $795 for most loan types. However, if you are a Costco member, or if you are willing to join, you will be able to avail of a much lower origination fee, which amounts to as low as $275.
All mortgage loans that J.G. Wentworth offer are all secured loans, which means collateral is needed to be able to acquire an approval (apart from other requirements, of course). Like in any other mortgage lenders though, the house you purchase using the loan automatically becomes the collateral, which means in case of default payment, the company acquires the property.
J.G. Wentworth mortgage loan is available in every state and DC except Hawaii, Idaho, Missouri, Nevada, and New York.
As mentioned earlier, the company has various offices in different states, which include Arizona, Connecticut, Florida, Georgia, Iowa, Kansas, Maryland, Michigan, New Hampshire, New Jersey, North Carolina, Pennsylvania, Texas, and Virginia.
WHO QUALIFIES FOR A J.G WENTWORTH MORTGAGE?
At this point in our J.G. Wentworth mortgage, we are going to share with you the qualifications set by the company for those planning to do mortgage with them.
When you apply for a J.G. Wentworth mortgage, it is important to note that one of the major factors they consider is your credit score.
If you do not have a pleasing credit score, we highly recommend checking out other lenders or if you are not in a hurry, work on getting the best credit score as possible.
Having a high credit score means being able to avail of the best rates the company can offer, which in return will allow you to save thousands of dollars over the course of the loan.
Although the company does not display credit requirements upfront on its website, normally, the rule of thumb is to have around 700 FICO score to be able to qualify for a conventional loan. While 620 credit score is required as a minimum for some government-backed loans.
To be sure, again, we highly recommend calling J.G. Wentworth to know if you qualify for a mortgage with them.
Apart from the credit score, the company will also factor in the borrower’s employment history. Borrowers need to have at least two years of proof of employment. The proof would be your W-2s and pay stubs. If self-employed, additional documents will be required to prove your income.
Furthermore, the lender will also analyze your savings to ensure that you are able to cover the down payment required (which is usually 20%).
Another factor that the company takes into consideration is the debt-to-income ratio of the borrower.
All these, again, must be assessed to see if you are qualified for a mortgage at J.G. Wentworth.
HOW TO APPLY FOR A J.G WENTWORTH MORTGAGE?
This time around, you already know a lot of things — important things — about J.G. Wentworth mortgage.
Now, it’s time to talk about how to actually apply for a mortgage with J.G. Wentworth.
Initially, you have to check your qualifications, which include your checking your credit score as it affects a lot in the approval or non-approval of your loan application.
If you are with the required credit range, you may now opt to choose how to apply for a loan — you can either do it in person by visiting any J.G. Wentworth’s physical locations near you, or by filling out a form online that will provide you with a quote estimate, at the same time, give you the option to apply online.
Similar to any other mortgage application, you will be asked to provide your personal and financial information such as your address, Social Security number, as well as contact information. If you have a co-borrower, he or she needs to provide the same type of information as well.
As your application progresses, you will also be asked to provide employment details like tax returns and pay stubs, as well as your bank information.
By providing this information, the lender gets to verify your ability to afford monthly mortgage payments and the down payment as well.
After all the processes, the lender will then decide if you pass the qualifications, and then give you approval.
Once approved, as mentioned earlier, you will then have to coordinate a closing date and continue with your loan officer until you finalize the details on purchasing the property.
WHAT ARE THE PROS AND CONS OF J.G WENTWORTH MORTGAGE?
Similar to other reviews we made previously, this J.G. Wentworth mortgage review will not be complete without our list of pros and cons. This, hopefully, will help you determine if the lending company is the right one for you.
- Provides various mortgage options including government choices like FHA, VA, and USDA (all these are ideal for low-income residents who want to be homeowners).
- Have in-person offices in 14 states, which makes it ideal for non-tech savvy customers.
- Unfortunately, the lending company is not licensed to operate in all 50 states.
- Unlike other lenders that offer an online application process, J.G. Wentworth is not as cohesive.
- The company charges various fees, which include the origination fee.
- The lending company does not provide so much information particularly on rates on their website.
FINAL THOUGHTS ON J.G WENTWORTH MORTGAGE REVIEW
To sum it all up, J.G. Wentworth’s mortgage has its own highs and lows. Just like any other lending companies out there, it has its share of good and bad.
While it is ideal for people with high credit scores, it is also worth taking a chance for those low-income individuals who want to have a property of their own.
Do you fall into any of the brackets the company attends to?