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J.G. Wentworth Mortgage Review: Understanding What’s In It For You

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.

JG Wentworth Mortgage Review

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.

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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
  • Refinance

Now, let’s discuss each option further —

Fixed-Rate Mortgage

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.

Adjustable-Rate Mortgage

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. 

Refinance

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
  • Availability

Loan Amounts

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.

Interest Rates

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

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
Refinance 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.

Collateral Requirements

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.

Availability

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.

PROS

  • 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.

CONS

  • 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?

Keep in mind, that while this J.G. Wentworth mortgage review provides you with all the essential information you need, and while we can recommend it to you, at the end of the day, the decision lies on you and your capability to repay the loan.

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Investment Apps and Websites

7 Best Refinance Mortgage Companies

Every borrower knows that refinancing a mortgage will help lower the loan cost, and helps save him or her thousands of dollars. However, it is important to consider dealing only with the best refinance mortgage companies to ensure you get the best rates possible.

best refinance mortgage companies in the country today

In a recent report published by Forbes online, it says that low mortgage interest rates continue to rise in refinance activity regardless of the crisis people are going through right now because of the coronavirus pandemic.

In fact, according to Forbes, the surge resulted in a record-breaking loan volume for lenders between March to May.

In the same report, it says that “the refinance share of mortgage activity continued to rise, accounting for 65% of closed loans in April, up from 55% in March and 51% in February.”

Refinancing a mortgage is one of the best decisions any borrower can make especially when stuck in a crisis. By refinancing the loan, the borrower gets to save a few bucks, which can be used for other essential things.

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But just like when you are just starting to find a lender when you were eyeing that house you’re in now, it is also important that you look around, shop around for the best refinance mortgage companies. That way, you get to find the best deals possible (rates and terms in particular) – the one that’ll fit your personal preference and of course, your budget.

So, having said that, we are going to share with you some of the best refinance mortgage companies in the country today.

But first, here are some important information we thought a borrower must know first before you even seal a deal with a refinance mortgage company:

  • What is a mortgage refinance?
  • Why refinance your mortgage?
  • When to refinance a mortgage?
  • How to find the best refinance mortgage company?

WHAT IS A MORTGAGE REFINANCE?

Before we even talk about the different outstanding refinance mortgage companies out there, we thought it’s important that as a borrower, you fully understand first what your getting yourself into.

So, first and foremost let’s define what a mortgage refinance actually means.

Similar to any type of loan refinancing, when we say mortgage refinance, it basically refers to getting into a new mortgage to replace your current home loan.

By refinancing a mortgage, a borrower gets to first, lower the cost he or she pays on a monthly-to-month basis, and that he or she gets to save thousands of dollars on his or her pocket.

When getting into a mortgage refinance, it is important to only deal with banks or any financial institutions or lending companies that offer a lower cost to what you are currently paying. Otherwise, refinancing will be useless.

Yes, the very reason why you refinance a loan is to be able to first, save money, and then, second, to shorten the term length.

WHY REFINANCE YOUR MORTGAGE?

Now, why do you need to refinance your mortgage? Why not stick to the original loan?

Well, there is totally nothing wrong if you’d rather choose to just stick with the original mortgage. Refinancing is just an option for those who want to lessen the cost they are paying, at the same time, enjoy flexible term length.

To give you a more thorough explanation on why borrowers consider refinancing their mortgage, here are some of the common benefits that refinancing mortgage provides:

  • Lower Mortage Rate – We kept saying this already. But realistically speaking, it is the primary reason why people get into refinancing loans whether it be for a home loan, personal loan, etc. Getting a lower mortgage rate results in smaller monthly payments, which is really beneficial as you get to save a few bucks, right?
  • Shortened Loan Term – By refinancing, you can shorten a loan term from a 30-year term to 15 or 20 years. While there is a chance that shortening the term might increase your monthly payment, it can definitely help decrease the overall interest you pay over the lifespan of your loan.
  • Getting Rid of Mortgage Insurance – Generally, when buying a home with a 20% down payment or less, you will be required to pay for mortgage insurance. However, by refinancing the mortgage, you get to stop paying private mortgage insurance. Needless to say, it is the only way to get rid of FHA mortgage insurance.
  • Get into Equity – Through a cash-out refinance, you get to borrow more than what your current loan balance is, and then, you can take out the cash difference, which is usually used to pay for home improvements.
  • Replace Adjustable-Rate Mortgage (ARM) with Fixed-Rate Loan – Instead of enduring the uncertainty of annual interest-rate adjustments with an ARM, you may instead consider refinancing with a fixed-rate loan. That way you free yourself from worries of the rate rising to a certain extent.

WHEN TO REFINANCE YOUR MORTGAGE?

Generally speaking, a borrower may refinance a mortgage as often as he or she can — as long as it makes financial sense, of course.

However, there are refinance mortgage companies or lenders that require “seasoning” between refinances, which means the lender requires the borrower to have the loan for a particular number of months before refinancing again. So, to be sure, ask your preferred lender.

If you want to learn more about when to refinance your mortgage, check out the very informative video below by The Dave Ramsey Show:

HOW TO FIND THE BEST REFINANCE MORTGAGE COMPANY?

There are certain things that borrowers need to work on in order to find the best refinance mortgage company. Don’t worry, these are basic things. In fact, you probably have gone through the same when you were looking for a lending company to help finance your dream home.

Anyway, here are some of the things that you need to take into consideration when finding the best refinance mortgage companies (which is tantamount to finding the best refinance rates ever):

  • Build an impressive credit score. This one’s pretty obvious — needless to say, very generic. If you want to get good interest rates, you better have an outstanding credit score.
  • Shop and compare mortgage refinance rates. As much as possible, shop around. Do not just settle for one lending company. Remember, there are so many options out there. You’ll never know which one offers the best rates and terms if you will not shop and compare.
  • Buy points. Some homeowners may not be aware that they can actually buy points to help lower their interest rates. This basically means you pay the lender upfront for a lower rate over the course of the mortgage. Please note that one point is equivalent to 1 percent of the loan amount.
  • Choose the best loan term. Generally speaking, the shorter the loan term is, the higher the monthly payment will be. But that means a lower interest rate. Meanwhile, the longer the term is, the lesser you pay monthly, but the total amount may just be the same, if not even higher than what you are actually paying now. So, choose wisely.
  • Go for a fixed interest rate. To be honest, the value for borrowers slash homeowners is at a fixed rate as with variable or adjustable-rate mortgage (ARM), the interest rate changes.

BEST REFINANCE MORTGAGE COMPANIES

Now that you already know what refinancing a mortgage is all about, the reasons why you should consider refinancing a mortgage, when you should consider refinancing, and the factors that affect in finding the best refinance mortgage companies in town, it’s time to share with you our list of some of the industry’s best refinance mortgage companies.

These are —

  • American Federal Mortgage
  • Bank of America
  • Chase
  • Raymond James Bank
  • Rocket Mortgage
  • Santander Bank
  • Third Federal Savings and Loan
Bank Annual Percentage Rate (APR) Loan Terms Minimum Credit Score
American Federal Mortgage varies Not stated but offers various flexible loan terms 580
Bank of America 3.75% Up to 30 years 600
Chase varies Up to 30 years 620
Raymond James Bank 4.303% Up to 30 years 580
Rocket Mortgage Varies Up to 30 years 580
Santander Bank 4.303% Up to 30 years 580
Third Federal Savings and Loan 3.02% Up to 30 years varies

AMERICAN FEDERAL MORTGAGE

There are a couple of noticeable things about the American Federal Mortgage.

First, unlike other mortgage companies, the American Federal Mortgage application process is quick and easy. Borrowers may submit a mortgage refinance application online, and receive feedback within 24 hours.

Pretty quick? Well, that is made possible by the use of computerized underwriting. This step helps streamline the loan approval process.

In addition, another unique feature of American Federal Mortgage has something to do with its corporate incentive program. If the company you work for is a member of this program, you may take advantage of a mortgage discount. On top of that, you won’t be charged for application or origination fees, plus the appraisal fee is refundable.

So, better check now if your company is a member so you get to enjoy these perks.

By the way, American Federal Mortgage is one of the largest privately-held mortgage bankers in the country and is headquartered in Chester, New Jersey.

BANK OF AMERICA

Bank of America is one of the largest banks in the country. Needless to say, it’s been around for years. It’s a trusted and reputable financial institution — you can never go wrong of.

The bank offers various products and services, which include mortgage refinance.

Bank of America provides three mortgages refinance options for approved loans. The options include 15-year fixed, 30-year fixed, and 5/1 adjustable-rate mortgages. All these come with some of the most competitive rates in the industry.

Of all the options available, Bank of America’s 15-year fixed-rate mortgage is the most competitive.

In addition to the options available for mortgage refinancing, the bank also offers a cash-out refinance option to borrowers who have sufficient equity. All qualified homeowners with equity may get the chance to refinance as well as borrow more to pay off other existing debts. Keep in mind, though, that it may also mean a larger loan.

While the cash-out refinance is a good option for those who are trying to get rid of high interest, it may be a little risky for the others.

By the way, Bank of America lends money of up to $5,000,000. Thus, making it ideal for borrowers or homeowners who need to loan a big amount of money.

CHASE

As stated on its website, Chase is the country’s “consumer and commercial banking business of JPMorgan Chase & Co. (NYSE: JPM), a leading global financial services firm with $2.6 trillion in assets and operations worldwide.”

When it comes to reputation and credibility, Chase definitely has it.

Generally, Chase offers a wide variety of outstanding products and services. So, it’s not surprising that their mortgage refinance option is included in this list.

Chase Bank does offer several mortgage options, which include adjustable-rate mortgages. Borrowers may choose from 5/1, 7/1 and 10/1 ARMs.

Unfortunately, Chase is not all-digital based, which means borrowers may need to visit the nearest branch to be able to apply for a mortgage refinancing.

It is important to note though that while home-lending advisors are not available in every state, the bank originates home loans across all 50 states.

RAYMOND JAMES BANK

Although headquartered in St. Petersburg, Florida, Raymond James Bank serves the whole country when it comes to their mortgage and mortgage refinancing products and services.

Raymond James Bank has a reputation for taking an all-inclusive, client-focused approach to finance. Furthermore, the bank also takes pride in its dedication to providing customers with personalized solutions to their financial needs.

When it comes to the lending process, Raymond James Bank provides borrowers with a great deal of variety in terms of mortgage types. The bank offers government-backed fixed mortgages with 30-year terms, 15-year fixed-rate and 30-year fixed-rate mortgages, as well as a great selection of ARM mortgages with terms ranging from 5/1 to 15/1.

ROCKET MORTGAGE

Rocket Mortgage is a product of Quicken Loans, the country’s largest mortgage lender. Rocket Mortgage was designed to streamline the mortgage, or mortgage refinances, as well as process and shorten the time from initial application to closing of the loan.

According to Realtor Magazine and the National Association of Realtors, closing on a refinance usually runs for about 48 days. However, Rocket Mortgage is usually able to push closing through more quickly than its competitors because of its association with Quicken Loans.

Unlike other refinance mortgage companies, Rocket Mortgage offers a fast and easy pre-qualification process. In fact, so quick that it could only last for up to 10 minutes.

Meanwhile, verification of income, employment, as well as other important personal information is done over the phone. A loan specialist will be the one to conduct it. The process is usually completed within the same day of application.

Once approved, loaned funds are disbursed in about 10 to 35 days. The length of time depends on the timeline for the appraisal process as well as the completion of other requirements.

SANTANDER BANK

Santander Bank is the best choice when it comes to low 30-year fixed APR.

Santander Bank, one of the largest retail and commercial banks in the country today, offers a variety of mortgages for homeowners who wish to refinance. The bank’s mortgage refinances products include fixed-rate, adjustable-rate, and special mortgages.

For fixed-rate mortgages, they come in 15- or 30-year terms. Its 30-year term comes with one of the lowest in this category — which is precisely why we said it’s one of the best options for 30-year fixed APR.

Meanwhile, ARM mortgages are available on 5/1, 7/1, or 10/1 terms. Similar to its fixed-rate option, ARM mortgages do have lower initial rates that stay as it is for the first 5, 7, or 10 years of the mortgage. Then, the rates adjust annually.

Apart from the above-mentioned, Santander also offers special mortgages like government-backed FHA and VA mortgages.

Unlike other lenders, Santander Bank does not charge any origination fees. However, it does offer a point’s buy-down system, which allows borrowers or homeowners to buy one point for 1% of their loans. Each point-bought can help reduce the interest rate by 0.08% to 0.25%.

THIRD FEDERAL SAVINGS AND LOAN

If you are looking at getting a 10-year fixed-rate loan, then Third Federal Savings and Loan may just be the right choice for you.

Third Federal Savings and Loan has become a top pick among borrowers because it offers one of the lowest 10-year fixed-rate refinance rates in the country. At the moment, it starts at 3.02% APR.

When it comes to requirements, Third Federal Savings and Loan is known to be less strict particularly for private mortgage insurance, which is usually required unless the buyer can put down a 20% down payment.

With Third Federal Savings and Loan, the company only requires PMI if you have a down payment of 15% or less.

Similar to other lenders out there, borrowers need to keep in mind that there are closing costs to consider. However, the cost can be as little as $295 only for all smart ARM as well as 10-year fixed-rate loans. Also, all of the loan costs bundled into one convenient feed.

In addition, while most lenders offer a 30-day rate lock, Third Federal offers a 60-day rate lock.

When it comes to reputation and credibility, Third Federal Savings and Loan has maintained a 5-star Bauer rating for 25 years.

Unfortunately, though, Third Federal Savings and Loan is only available across 25 states and the District of Columbia.

FINAL THOUGHTS ON BEST REFINANCE MORTGAGE COMPANIES

Refinancing a mortgage is definitely a must-do if you want to either lessen the cost you pay on a month-to-month basis, or you want to speed up the loan terms.

Good thing is, there are a lot of financial institutions out there that offer refinancing for home loans, which means, borrowers, do have a lot of options to choose from.

However, as we have said, if you are looking at refinancing a home loan or any loans for that matter, make sure to shop around first before settling for one. By doing so, you get to choose the best deals possible.

Are considering refinancing anytime soon?

Remember to only choose among the best refinance mortgage companies out there to ensure you got the best rates and terms based on your personal capacity to pay.

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9 Best Mortgage Lenders In The Country Today

The most ideal way to be able to find the right mortgage loan partner is to shop among the best mortgage lenders out there. By doing so, you are assured you get the best deals possible — the one that’s exactly what you need and can afford.

best mortgage lenders

Mortgage debt is the largest form of debt among consumers in the United States according to a report from Statista. As of 2019, the outstanding mortgage debt in the country was estimated at $16.01 trillion, and the number is expected to rise this year and the years to come.

Real talk – people want to eventually own their own home, and one of the best ways to attain that goal in as soon as possible is through a mortgage.

To be blunt, there is totally nothing wrong with that! In fact, it’s a good way to stay inspired and to keep working hard – knowing that you need to have enough money to pay for a mortgage loan, and eventually, pay it off so you can finally say, you own that home.

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Now, when it comes to how to get a mortgage loan, there are actually a lot of options out there.

There are so many lending companies, banking institutions that offer really good rates when it comes to a mortgage loan. Of course, there are several factors to take into consideration, but as long as you qualify, then getting a loan should not be a problem.

When it comes to choosing a “partner” though, for your dream home, it is important that you do not settle immediately to one lender.

As much as possible, you go shop around for the best mortgage lenders so you get to compare deals and come up with an informed decision.

Now, to help you come up with a list of lending companies to check out (because admittedly, it could be hard and overwhelming, at the same time, knowing there are so many choose from out there), we are going to give you our list of best mortgage lenders to date.

But before that, we are going to share with you some important information first about the mortgage – particularly the following:

  • What is a mortgage?
  • What are the major types of mortgages?
  • How to find the best mortgage lenders?

WHAT IS A MORTGAGE?

Before we even talk about the best mortgage lenders, we thought it’s important for borrowers to fully understand first what mortgage is all about.

A mortgage is a type of loan that a borrower can get from a financial institution or lending company. The money is specifically intended for purchasing a home.

Similar to other forms of loans, mortgage comes with an interest. When a borrower gets into a mortgage with a lending company, it’s tantamount to a promise that you are going to repay the amount of money you borrowed plus the accrued interest.

Unlike personal loans, a mortgage does have collateral. In fact, the house you buy using a mortgage automatically becomes the collateral. This means that if in case you fail to pay off the mortgage, the lending company has all the right to foreclose the property.

It is important to note that the loan does not become a mortgage up until it is attached as a lien to the property. Thus, the importance of paying the loan on time and according to the terms you agreed to.

WHAT ARE THE MAJOR TYPES OF MORTGAGES?

One thing’s for sure, not all mortgage products are equal to one another. While some have more stringent guidelines, others are not.

While there are lenders that might require a 20% down payment, others may require as little as 3% of the property’s purchase price.

Now, before you even seal a deal with a mortgage lender, it is also important that you are aware of the different types of mortgages available.

So, to give you an idea, below are some of the major types of mortgages available in the market today:

Conventional Mortgages

This refers to a loan that is not backed by the federal government but by Fannie Mae or Freddie Mac, two government-sponsored enterprises that buy and sell most conventional mortgages in the country.

To qualify for this type of mortgage, the borrower has to have a good credit history; stable employment, as well as income histories; and must have the ability to make at least a 3% down payment.

However, to be able to avoid the need for private mortgage insurance (PMI), generally, borrowers need to make a 20% down payment for the property.

Conforming Mortgage Loans

This type of mortgage loan is bound by the maximum loan limits that were set by the federal government. The limits depend on the geographical area.

Nonconforming Mortgage Loans

This type of mortgage loan cannot be sold or bought by Fannie Mae and Freddie Mac because of the loan amount or underwriting guidelines set. The most common type of non-conforming loans though is what they call “jumbo” loans, which is referred to as it is because of the loan amount usually exceeding conforming loan limits.

Government-Insured FHA Loans

This type of mortgage is ideal for low-to-moderate-income buyers purchasing a house for the first time who can’t qualify for a conventional loan. This type of loan is insured by the Federal Housing Administration.

Government-Insured VA Loans

This one’s specific to qualified military service members, veterans, and their spouses. For this type of loan, the U.S. Department of Veterans Affairs guarantees homebuyer loans.

Furthermore, borrowers are allowed to finance 100% of the mortgage with no down payment required.

Government-Insured USDA Loans

For this type of mortgage loan, the U.S. Department of Agriculture guarantees loans to help make homeownership possible for low-income buyers in the country’s rural areas.

This is ideal for homebuyers who cannot qualify for conventional loans, and have low income, and does not have enough money to pay for a down payment.

HOW TO FIND THE BEST MORTGAGE LENDERS?

Now that you already know what a mortgage is and what the major types of mortgage loans are, this time around, we’ll share a few important tips on how to find the best mortgage lenders in town.

Tip 1: Build a strong credit. Before you even start sending mortgage loan applications, make sure you check your finances and fix whatever needs to be fixed. Strong credit is the key to the best rates and terms possible.

Tip 2: Slim down your budget. Do not aim for a high-priced property if you do not have the right income for it. Narrow your budget to ensure you are able to pay off the loan without any problem.

Tip 3: Know your options. There are several types of mortgages. Make sure you are well-aware of them and that you know which one fits you.

Tip 4: Compare among lenders. As mentioned, do not settle with one lender immediately. Make sure to take time to shop around and compare.

Meanwhile, sharing with you a very informative video by Homebuyer’s School wherein they share tips on how to choose the best mortgage lender:

BEST MORTGAGE LENDERS IN THE COUNTRY

As the last tip say, compare lenders.

At this point, we are sharing with you some of the best mortgage lenders in the country today. Of course, there are so many options available. There are a lot of them. However, trimming down your options and focusing on the best ones is the key to get into the right deal possible.

So, here are the companies that we thought you should check out (we arrange the list alphabetically):

  • Bank of America
  • Chase
  • Citi Mortgage
  • Guaranteed Rate
  • New American Funding
  • Quicken Loans
  • Rocket Mortgage
  • SoFi
  • Suntrust
BANK MINIMUM DOWN PAYMENT BEST POSSIBLE RATE
Bank of America 5% 3.750%
Chase 3% 3.625%
Citi Mortgage 3% 3.125%
Guaranteed Rate 3% 3.750%
New American Funding 3% 3.500%
Quicken Loans 3% 3.99% (4.247% APR)
Rocket Mortgage 3% 4.56%
SoFi 10% 3.274%
Suntrust 3% 3.75% (3.8898% APR)

BANK OF AMERICA

Apart from offering a wide range of retail banking, the bank also offers various types of mortgages, which include adjustable as well as fixed rate mortgages, jumbo loans, VA, FHA, and the ““Affordable Loan Solution” mortgage”. The latter refers to a program that was launched in 2016 to specifically help low-income buyers to get to buy their first home.

When it comes to credibility, Bank of America has it being one of the biggest financial institutions in the country. Needless to say, they’ve been around the banking industry for a long time now.

As with the reach and availability, the bank has several branches across all 50 states, which makes it very accessible to borrowers. In addition, they have mortgage lenders who are available to walk you through the whole loan process.

Although Bank of American is a giant, you may still find a number of bad reviews on the internet. So, to make sure, it would be better if you do your own research and also consider talking to a lender at the bank to know more about their products and services, especially about a mortgage.

CHASE

Chase is another well-known bank in the country. When it comes to mortgages though, the bank has a major presence in this industry.

Apart from the fact that it has in-person mortgage experts in 30 states across the U.S. who are available to guide you through the loan process, Chase comes out on top of the lowest rate on fixed-rate mortgages as compared to other big lenders.

The bank practically offers any type of mortgage like adjustable-rate, FHA, VA, HARP, jumbo, and of course, fixed-rate.

Like Bank of America, Chase does have a special program called “DreaMaker Mortgage,” which is a mortgage grant that provides $3,000 assistance for either down payment or closing costs. More so, it does not have income limits, and that it provides down payment options for as low as 3%, which could be from gifted funds.

CITI MORTGAGE

Citi Mortgage is related to Citibank, which is one of the country’s largest banks. With that, it’s no wonder why they are able to provide mortgage options to almost anyone who qualifies.

Citi Mortgage is ideal for borrowers who opt for either an FHA or VA loan. But generally, the institution offers a diverse set of loan products as well as terms and relationship discounts, which actually make it a top pick especially among first-time homebuyers.

One thing that Citi Mortgage must be proud of, apart from their outstanding products and services, is the fact that they do have high customer satisfaction ratings.

GUARANTEED RATE

Guaranteed Rate is ideal for borrowers who have at least 620 credit score, solid credit history, and stable income but do not have enough money for a down payment.

This lending company offers various mortgages including FHA, VA, USDA, as well as various adjustable-rate mortgages and jumbo mortgages for purchase or refinance. They also offer cash out.

Although it has 170 physical offices across 50 states, Guaranteed Rate allows an online application, which makes the process easier.

NEW AMERICAN FUNDING

As compared to other larger mortgage lenders, New American Funding is family-owned. However, over the years, it has grown to be one of the top 30 lenders in the United States.

New American Funding offers various types of mortgages including home equity, reverse mortgages, jumbo, fixed, adjustable, HELOCs, FHA, VA, USDA, as well as refinance and purchase.

Unlike most lending companies, New American Funding uses manual underwriting to evaluate a borrower’s creditworthiness. By doing so, they get to evaluate the borrower’s finances in a more comprehensive manner.

Although that is the case, the company offers the online application, as well as rate quotes, document upload, and loan tracking. A pre-qualification process may also be done online, but make sure to follow up on the prequalification letter.

What’s nice about the company is that they offer competitive rates and that they also have first-time home-buyer programs, which obviously is something first-time homeowners can take advantage of.

New American Funding also works with both state and local agencies to be able to help buyers with regards to payment assistance.

QUICKEN LOANS

One thing that probably sets Quicken Loans apart from other lenders in our list is that it provides an easily accessible online application that automatically verifies a borrower’s income as well as employment. They also have mortgage advisors if you need one.

When it comes to loan terms, the lending company offers a wide selection of terms that range from five up to 30 years.

For borrowers who require an FHA-backed loan or products by Fannie Mae and Freddie Mac, you can easily walk away with a mortgage for a very low down payment of three percent.

Unfortunately, the company does not offer HELOCs (Home Equity Lines of Credit) or home equity loans. So, if you are looking at that, you better check other mortgage lenders instead.

Meanwhile, Quicken Loans only looks at a borrower’s credit score and debt-to-income ratio to qualify. Needless to say, the process is fairly straightforward. Often, the company provides an answer regarding the approval or non-approval of your loan application in just a matter of minutes.

ROCKET MORTGAGE

If you are looking for either conventional or government-backed mortgages, then Rocket Mortgages is one of the best options around. The company offers various loan types including purchase, refinance loans, jumbo loans, adjustable-rate loans, as well as fixed loans, VA loans, FHA loans, and USDA loans.

Just like Quicken Loans, Rocket Mortgage does not offer home equity loans or HELOCs as well.

Unlike other mortgage lenders, Quicken Loans is a self-service, online, mobile-friendly mortgage company. The company lets you know about the amount you qualify for in just a few minutes.

Although they promote online mortgage loan applications, they do have available lenders in case you have questions.

SOFI

SoFi is a leading online mortgage lender, which adds up to its credibility. It specializes in jumbo loans for borrowers who have a good income but does not have enough savings for a down payment.

SoFi offers a lot of perks — they do not charge an origination fee, no prepayment penalty fees, and to top it all, you can loan up to $3 million on either primary or secondary homes with a 10% down payment.

However, all these perks are only available for borrowers with excellent credit history and solid employment. Borrowers need to have a high range of income and must purchase or refinance a home in a state where SoFi is licensed to originate loans.

As with the whole application process, it could take as long as 30 days. But it’s going to be worth it anyway as long as you know you hit all the qualifications set by the company.

SoFi also offers a pre-approval process that won’t affect your credit.

SUNTRUST

SunTrust has a wide range of online mortgages with competitive interest rates.

You can opt for a 30-year or 15-year fixed loans, and 5-, 7-, and 10-year ARMs (adjustable rate mortgages), as well as jumbo loans.

For borrowers who do not have a standard 20% down payment or good credit history, do not worry as this lending company also provides other mortgage options like FHA, VA, and USDA Loans.

Furthermore, SunTrust also offers affordable loan programs, which they call as “Agency Affordable Financing,” which is made possible through Fannie Mae and Freddie Mac.

This particular program is ideal for homebuyers who can only pay a 3% to 5% down payment.

FINAL THOUGHTS ON BEST MORTGAGE LENDERS

You see, there are so many mortgage lenders out there. Needless to say, there are a lot of best mortgage lenders competing with one another, offering the best possible deals among borrowers.

While it may get a little overwhelming choosing one among a sea of options, it is, for sure, worth it and satisfying in the end.

So, have you decided which mortgage lender to deal with yet?

Keep in mind that choosing one among the best mortgage lenders is the best thing to do. That way you are assured of getting only the best deals and terms, needless to say, you get to enjoy a few other exciting perks.

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Investment Apps and Websites

LoanDepot Personal Loans Review: A Borrower’s Guide

This LoanDepot personal loans review is all you need if you want to know more about what the company has to offer and how you can possibly apply for a loan.

LoanDepot Personal Loans Review

According to a report published by the United States Chamber of Commerce, one of the main reasons why personal loans are becoming popular these days is the fact that it’s very flexible. Borrowers can use it basically for anything and everything under the sun. Needless to say, it is often unsecured, which means a borrower does not need collateral in order to get a loan.

Having said that, it is not surprising that currently, there are 21.1 million outstanding personal loans in the country, with a total outstanding personal debt of $143 billion.

Meanwhile, in a report published by Reuters online, it says that according to New York Fed, in the last quarter of 2019, mortgage balances in the U.S. rose by $120 billion to $9.56 trillion

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Furthermore, in a report published by CNBC, it says that according to Northwestern Mutual’s 2018 Planning & Progress Study, an average American has about $38,000 in personal debt and that it does not include home mortgages yet.

The report says that in the U.S., credit cards and mortgages have become two of the leading sources of debt among Americans.

You see, both personal loans and mortgages are indeed growing in numbers, and the rise is not surprising. In fact, experts believe they will continue to increase in the coming years.

Well, given the current situation not just in the country but in the world, the numbers will surely continue to go up. Way higher than expected even.

Anyway, if you are one of those looking for a place to borrow money from – whether it be for personal loan or mortgage – the good news is, there are so many financial institutions and lending companies out there where you can apply for a loan from.

In fact, they’re too many it can get overwhelming. One of the companies providing personal loans as well as a mortgage is LoanDepot, which is the very reason why we are doing this review.

As mentioned earlier, we hope to provide you with all the essential information you need about the company, and how to actually apply for a loan from them.

To be specific, let below list of points be your guide as we discuss all LoanDepot:

  • Who is LoanDepot?
  • What are the services provided by LoanDepot?
  • What do you need to know about personal loans at LoanDepot?
  • Who qualifies for a personal loan at LoanDepot?
  • How to apply for a personal loan at LoanDepot?
  • What are the pros and cons of LoanDepot personal loans?

WHO IS LOANDEPOT?

Founded in 2010 by Anthony Hsieh, LoanDepot is ranked as the fifth-largest mortgage lender in the country today. The company offers conventionally fixed- and adjustable-rate mortgages, as well as HARP, FHA, VA, Jumbo, and home equity loans.

LoanDepot offers competitive interest rates and allows borrowers to choose among its available loan terms, which varies from 10- to 30-year terms.

LoanDepot also offers refinancing options, in case you are looking for a company to help you pay off an existing loan. 

Particularly on its mortgage service, LoanDepot offers a one-of-a-kind lifetime guarantee, which waives any future lenders and appraisal fee should you have already refinanced once with the company.

But apart from mortgage products, this Foothill Ranch, California-based company also offers non-mortgage lending products such as personal loans.

LoanDepot’s personal loan though is not your typical kind of personal loan as it only caters to loans of at least $5,000. So if you are borrowing money lesser than $5,000, this company may not be an option for you.

Anyway, as we discuss further, we’ll tell you more about LoanDepot’s products/services.

WHAT ARE THE SERVICES PROVIDED BY LOANDEPOT?

As mentioned, this LoanDepot personal loans review aims to provide you all the information you need to know about LoanDepot. While the review is specific to LoanDepot’s personal loans, we thought it is also important that you are knowledgeable about the other products/services, rather the variety of products or services that this lending company provides.

Who knows, you might just need to apply for one in the future, right?

Anyway, for your information, below are the different types of loan services that LoanDepot offers and is known for:

  • Personal Loans
  • Home Mortgages
  • Home Loan Refinancing

Personal Loans

Generally speaking, personal loans pertain to a type of loan that is probably the most versatile and easiest to qualify.

In most cases, personal loans are unsecured loans, which means no need for any collateral. Needless to say, it is the most accessible type of loan. In fact, some lenders get to provide the loan as soon as within the same day of approval of the personal loan.

Also called as a signature loan (because all you need to apply for is a signature), this type of loan does not usually require a traditional credit check, which also makes it an ideal choice for people who have poor or do not have a credit history.

Now, with regards to LoanDepot’s personal loan offering, as earlier mentioned, the company only caters to loans amounting to at least $5,000, while the maximum loan amount is $35,000.

Although LoanDepot’s personal loans are open for borrowers with either good or not-so-good credit standing, those with excellent credit scores can take advantage of rates as low as 6.17% APR.

Meanwhile, those with closer to the 600 FICO score minimum could be charged rates of as high as 29.99%.

Compared to its competitors though, what LoanDepot offers is still a bargain.

If you want to know more about LoanDepot mortgage, we recommend checking out the video below by The Smart Investor. You’ll surely get ample information you need about this service provided by LoanDepot.

Home Mortgages

Personal loans are not LoanDepot’s primary service or product. In fact, the company is actually known for home mortgages.

It is the company’s bread and butter — if we may say. It is LoanDepot’s primary lending service offered to borrowers — specifically to those who are looking at buying or building a new home.

Being the country’s fifth-largest mortgage lender, LoanDepot is known for providing conventional fixed- and adjustable-rate mortgages plus HARP, Jumbo, FHA, VA, and home equity loans as earlier mentioned.

Furthermore, the company provides competitive interest rates, as well as options when it comes to loan terms. Currently, you can choose between 10- and 30- years, which makes their mortgage really competitive in the market.

LoanDepot is ideal for those who need money for home mortgages. The company can lend as much as over $100,000.

Home Loan Refinancing

Regardless if you have your mortgage with LoanDepot or not, you can still apply for refinancing your loan through the company and enjoy a lower interest rate.

By doing so, you can enjoy tens if not hundreds of thousands of dollars over the life span of your mortgage.

Apart from refinancing, LoanDepot also offers VA, FHA, and HARP loans, which gives you a lot of options really.

More so, with LoanDepot, you can consolidate all your debts or you can opt to take out a home equity loan when you refinance.

WHAT DO YOU NEED TO KNOW ABOUT PERSONAL LOANS AT LOANDEPOT?

As a borrower, it is important to be fully aware not just about what the company offers, but also the more important details like the amount you can borrow, the terms. etc.

By knowing these will also help you compare one lending company to another to be able to arrive in an informed decision.

Having said that, this LoanDepot personal loans review will not be complete if we will not look into the following vital aspects:

  • Loan Amount
  • Rates
  • Loan Terms
  • Collateral
  • Fees
  • Customer Service and Technical Support

Before, we discuss each item, here’s what you can expect first with a LoanDepot personal loan:

Loan Amount $5K – $35K
Loan Terms Available 3 – 5 years
Interest Rate 5.67% – 24.98%
Annual Percentage Rate (APR) Range 6.67% – 29.98% (fixed)
Collateral None
Approval Time ~1 Business Day
Loan Deposit Time 2 – 3 Business Days
Origination Fee 1-5%
Late Fees Yes
Insufficient Funds Fees Yes
Ideal For People with good or excellent credit
Not For People who will only borrow a small amount of money
Overall Standout Features of LoanDepot Lifetime guarantee Offers most major mortgage types 150 branch locations nationwide

Now, let’s discuss deeper each of the following items –

Loan Amount

As mentioned, LoanDepot personal loans are ideal for people who need to borrow a large amount of money. So, if you are looking at loaning money amounting to $5,000 below, this lending company may not be a good choice for you.

LoanDepot specifically caters to borrowers who need to borrow at least $5,000 or at most, $35,000.

If you need money within that range, then, LoanDepot may just be the best choice for you.

Rates

When it comes to interest rates, according to LoanDepot, a borrower’s personal loan interest rate will be determined using various factors, which include the borrower’s credit profile, payment history, as well as the ratio of debt to income.

If you want to qualify for the lowest rates, you must have an excellent credit history.

Loan Terms

While LoanDepot has long terms when it comes to mortgages, they only offer 3 to 5 years term length options for personal loans.

Compared to other lending companies offering personal loans, it’s reasonable enough.

Collateral

As mentioned, generally, personal loans are unsecured loans, which means no need for a borrower to present collateral. The same goes for LoanDepot personal loans. It does not require any collateral to be able to borrow money from them.

Fees

Unfortunately for borrowers, unlike other lending companies, LoanDepot charges an origination fee of between 1% and 5% — depending on loan grade.

LoanDepot further explains that the fee is deducted from the loan proceeds, which means, a borrower need not pay anything out of pocket. In addition, the company states that if a borrower will use the loan proceeds for a specific purchase, he or she has to ensure that the borrowed money is enough to cover both the purchase as well as the origination fee.

Moreover, LoanDepot may also charge borrowers for late payments, as well as insufficient funds.

Fortunately, though, LoanDepot does not charge any prepayment fees. So, if you wish to end the loan earlier than scheduled, you may do so without incurring any type of penalty.

Customer Service and Technical Support

If you have questions, clarifications, or you want to know more about the products and services offered by LoanDepot particularly on their personal loan option, you may reach them through email or via phone.

LoanDepot’s phone support is available from Monday until Friday from 5 am to 7 pm PST and Saturdays from 8 am to 3 pm PST.

Unfortunately, the company does not have live support yet. But, we will see, maybe it is already in the works.

WHO QUALIFIES FOR A PERSONAL LOAN AT LOANDEPOT?

Although it is not clearly stated on their website, LoanDepot is ideal for people who have excellent or at least 600 (FICO) credit score to qualify for personal loans.

Furthermore, to qualify for a LoanDepot personal loan, you must be at least 18 years old (19 if you’re an Alabama or Nebraska resident), must hold a U.S. citizenship or a permanent resident cardholder, have a verifiable income, a confirmable bank account, a valid email address, and you must meet LoanDepot’s credit criteria requirements.

In addition, you must be able to provide the following requirements:

  • Government Issued ID
  • Social Security Card
  • Proof of Residence
  • Proof of Income (Most recent pay stubs)

HOW TO APPLY FOR A PERSONAL LOAN AT LOANDEPOT?

At this point in our LoanDepot personal loans review, let’s talk about the application process.

Of course, once you have gathered all the requirements, and you have self-assessed and you think you do qualify for a personal loan at LoanDepot, the next step is to apply for a personal loan.

LoanDepot’s personal loan application process is very standard by industry standards except for the fact that you will have to designate what you are going to use the money you are going to borrow for.

The application process is conducted online. All you have to do is go to LoanDepot’s personal loans page, and then, as mentioned, fill in your desired loan amount.

You will then be automatically directed to a page wherein you will be asked to state the purpose of the loan. After, you will be asked to enter your personal as well as financial information, and then, formally apply for LoanDepot’s personal loan.

Just please take note that the company has a few restrictions. Thus, make sure to take time to review before you apply as the company can and will close your account should they feel like you have violated their terms of service.

Once you are done with the whole personal loan application process, you will then have to wait for 1 to 3 business days to know the status of your application.

If approved, expect to receive the funds through your bank account within 2 to 3 business days.

By the way, apart from an online application, you may also apply for LoanDepot’s personal loan via phone.

WHAT ARE THE PROS AND CONS OF LOANDEPOT PERSONAL LOANS?

We are almost done with our LoanDepot personal loans review, but of course, similar to other reviews we made, we are also giving you some of the pros and cons we found.

By sharing with you some of the benefits and downsides of LoanDepot, we hope this helps you come up with a decision – whether it is the right lending company for you or not.

PROS

  • The personal loan amount is up to $35,000. Compared to other lending companies, this is pretty big for a personal loan, which is why LoanDepot is an ideal choice if you are looking at borrowing a large amount of money.
  • It offers competitive rates. LoanDepot provides reasonable and competitive interest rates especially for those who have good and excellent credit history.
  • It does not charge a prepayment fee. Unlike other lending companies, with LoanDepot, you can end your loan anytime you want less worrying about getting charged for a penalty.
  • There are no hidden fees. Apart from origination fee, you won’t have to worry about getting charged down the road — unless of course you pay late or you have an insufficient fund in your account (which are given already).
  • You get to receive funds in two to three banking days. Once your loan application is approved, the funds are deposited into your bank account within two to three business days, which is reasonably fast as compared to its competitors.

CONS

  • It has a strict credit score requirement. As mentioned earlier, while anyone can apply for a personal loan at LoanDepot, the more likely you are to get approved if you have an excellent credit score or at least a 600 FICO credit score.
  • Charges an origination fee that ranges from 1-5%. This may be one factor that will turn borrowers away because compared there are a lot of other lenders out there that do not charge an origination fee.

FINAL THOUGHTS ON LOANDEPOT PERSONAL LOANS REVIEW

To sum it all up, although LoanDepot is well-known for its mortgages and refinancing home equity services, it has eventually ventured providing personal loans to borrowers.

It’s nice knowing that the company is able to cope up, and compete among other personal loan lenders. With being transparent with fees, they surely will be the next thing when it comes to personal loans.

Of course, similar to other lenders, it does have its share of good and bad, but we’d like to think they have more good than not-so-good ones.

So, how do you find LoanDepot personal loans so far? Do you think it’s the right lender for you?

We hope that this LoanDepot personal loans review was able to provide you no just essential information about the company and what it offers, but we hope it helped you come up with an informed decision.

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Investment Apps and Websites

What Are Collateral Loans And What Makes Them Ideal For You

There are two types of loans — one that requires collateral, and the other that does not require any “security”. Today, we are going to put some light on what collateral loans are. We will provide all the essential information to help you understand what this type of loan is all about, and why you should consider getting one.

What Are Collateral Loans

In an investigative paper entitled, “Secured Lending and Borrowers’ Riskiness” by Alberto Franco Pozzolo, it says that “a large number of bank loans are backed by real or personal guarantees.” Furthermore, it states that according to a report by Berger and Udell (1990), nearly 70 percent of all commercial and industrial loans in the United States are made on a secured basis.

Meanwhile, in a report published online by Statista, it says that from March 2014 to June 2020, the loans granted by various commercial banks in the United States amounted to an estimated 14.85 trillion U.S. dollars. Definitely high as compared to previous years. We thought the numbers might even spike in the coming months given the current situation in the country and all over the world.

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Getting loans is inevitable especially during crucial times when our financial capabilities are testes – times such as now.

Now, if you are new to borrowing money from financial institutions or lending company, know that as mentioned, there are two types of loans – secured and unsecured loans.

Secured loans are collateral loans, which means, you can only apply for the loan if you have collateral that serves as the company’s “security” should you fail to meet your obligations. Meanwhile. Unsecured loans allow you to borrow money without the need for collateral.

It is important to understand both. However, today, we are going to focus on understanding what are collateral loans.

For your reference, here are the different points that we are going to tackle:

  • What is collateral?
  • How does collateral work?
  • What are the different types of collateral?
  • What is a collateral loan?
  • What are the different types of collateral loans?
  • How to apply for a collateral loan?
  • What are the pros and cons of collateral loans?

WHAT IS COLLATERAL?

Before we even talk about what collateral loan is all about, let us first define what collateral is.

The term collateral, according to Investopedia, refers to an asset that a borrower provides, while the lender accepts to serve as “security” for a loan.

Collateral comes in different forms depending on the type of loan, and also, depending on what the lender requires. It could be in the form of a real estate, vehicle, or other kinds of assets based on the purpose of the loan.

The collateral serves as a form of protection for the lending company in case the borrower defaults on their loan payments. Should that happen, the lender can seize the collateral in lieu of the missed loan payments. The lender will then have to decide whether to sell the asset or keep it.

HOW DOES COLLATERAL WORK?

When borrowing through a secured loan, normally, the borrower will have to go through a certain process wherein the lender will check if you have the ability to repay the money you are loaning for. And one of the factors that they consider, rather, the most important factor that lenders will look into is if you have collateral that will serve as security for the loan.

Generally, collateral helps minimize the risk for lenders. It gives them a sense of assurance that no matter what happens — especially if the borrower defaults — the lender has a sort of “security blanket” in the form of the borrower’s asset.

As mentioned earlier, in case the borrower does default, the lender will automatically have the power over the collateral. The lender could sell it and apply the money it gets to the unpaid portion of the loan. If for instance, the collateral is not enough to cover the remaining balance, the lender has the option to pursue legal action.

Collaterals come in different forms — it could be in the form of real estate, a car, etc. Usually, it relates to the nature of the loan, which we are going to talk about in detail later on.

Generally, secured loans or collateral loans are available in lower interest rates as compared to unsecured loans.

In addition, just so you know, a lender’s claim to a borrower’s asset, which was made collateral is called a lien. It basically refers to the lender’s legal right or claims against an asset to help satisfy a debt, according to Investopedia.

WHAT ARE THE DIFFERENT TYPES OF COLLATERAL?

Now, before we answer the question, “What are collateral loans?” Allow us to provide you first with the different types of collateral available and/or accepted by lenders when aiming to get a secured or collateral loan.

If you are a borrower, it is important that you know the different types of collateral so you get to determine if you can afford a secured loan or not.

As mentioned, any asset can serve as collateral — but that depends on the requirements of the lender. Thus, it is important that you ask your preferred lending company first what they do and do not accept as collateral before you apply for a secured loan.

Generally speaking though, lending companies or financial institutions prefer assets that are easy to value and turn into cash.

One perfect example is money in a savings account. It usually is great for collateral. Why? It is because lenders know how much their value is, and it’s very easy to collect.

Apart from that, here are some other forms of collateral:

  • Automobiles
  • Real estate (including equity of your home)
  • Investments
  • Insurance policies
  • Cash accounts (except retirement accounts – although there may be exemptions)
  • Machinery and equipment
  • Valuables and collectibles
  • Future payments from customers (receivables)

Please note that even if you are planning to get a business loan, personal assets may also be considered or part of a personal guarantee. Meanwhile, retirement accounts like IRAs are usually not allowed to serve as collateral.

In addition, we thought you might as well know that when it comes to valuing your assets, generally, lenders offer less than the value of the pledged asset. Some assets may even be heavily discounted. The purpose of doing this is that lenders will have more chances of getting all their money back just in case the investment loses value along the way.

As a borrower, it is important to keep in mind that in case your pledged assets lose value for whatever reason, there would be a greater chance that you might have to pledge additional assets to ensure a collateral loan in place.

Ideally, you must pay whatever you owe and keep your asset with you. That should always be the aim of any borrower of a secured loan. Otherwise, it’s much of a hassle really.

WHAT IS A COLLATERAL LOAN?

We always say this — loans are inevitable. All the more these days when times are really tough. Loans allow us to get through certain points in our lives — like emergency situations and money is scarce.

Good thing though lending companies and/or financial institutions do exist. While there is an easier way of getting a loan through unsecured loans, the downside is that it costs a lot.

But there is one more option available though that comes with better rates — secured loans or also known as collateral loans.

Based on the definition of what collateral is, a collateral loan refers to a type of loan wherein the lender requires an asset to serve as collateral. The collateral serves as the lender’s assurance that should the borrower do not meet his or her loan payment obligations, the lender can seize the collateral and sell it to recover some or all of its losses.

As compared to unsecured loans, secured loans or collateral loans do have lower interest rates. Needless to say, the requirements are less strict because collateral exists. Thus, this makes it ideal for people who have assets and are not afraid to lose their assets in case of default.

Before we move on, if you are seriously considering getting a collateral loan anytime soon, we suggest you check the video below by eHowFinance wherein they share about tips on collateral loans.

WHAT ARE THE DIFFERENT TYPES OF COLLATERAL LOANS?

Now that you already know what a collateral loan is all about, this time, we are going to talk about what are collateral loans – its types and a definition of each, of course.

While there are different types of collateral loans, below are some of the most popular examples of collateral loans:

  • Personal Loans
  • Auto Loans
  • Mortgages
  • Small Business Loans
  • Margin Trading

Personal Loans

While most personal loans are unsecured loans, there are also a couple of secured ones.

Generally, consumers use personal loans to consolidate existing debt, build credit, or finance everyday expenses.

As mentioned, personal loans come in two different types — secured and unsecured.

Just like any secured loan, personal loans are backed by collateral. By having collateral, it helps reduce the lender’s exposure to the risk of default.

More so, with secured personal loans, lenders are able to charge a lower interest rate as compared to unsecured personal loans.

Apart from a physical property like houses or vehicles, lenders also accept monetary assets such as savings, future paychecks, or investments as collateral for personal loans.

Auto Loans

Auto loans are one of the most common types of secured loans used by a lot of consumers.

For this particular collateral loan type, the asset being purchased, or the car that is being purchased is used as collateral for the loan.

It is usual to a lot of lenders mandating that assets be appraised to know the proper value of the collateral. This process helps lenders determine whether it is worth the approval of the loan or not.

Mortgages

Just like auto loans, mortgages are also another very common collateral loan type. Similar car loans, it also uses the asset being purchased as collateral for the loan.

When it comes to appraisal, as compared to auto loans, lenders are more strict in mandating that the property be appraised to determine the current value of the collateral.

The appraisal process is particularly important for mortgage applicants because lenders only approve home loans if the appraised value matches or exceeds the sale price.

Small Business Loans

If you have a growing business, and you need funds to help finance its needs, one of the most popular ways business owners do is to apply for a small business loan. Small business loans can be used for different reasons like financing office space, hiring new people, as well as in purchasing new equipment.

Normally, acceptable collateral for this type of loan includes future payments by customers, inventory, as well as real estate. Personal assets of the business owner/s may also be used to secure approval for this type of loan.

In some cases, there are lenders that require a “personal guarantee” from small business owners. This refers to a written promise or assurance that the borrower’s personal assets can be seized if the company fails to meet its financial obligations to the lender.

Margin Trading

Although this one’s not as highly popular as the previous ones, collateralized loans are also considered a factor in margin trading.

What happens is that an investor would borrow funds from a broker to buy shares. The investor will then use the balance in his or her brokerage account as collateral to the loan.

The loan helps increase the number of shares the investor can buy, which multiplies the potential gains in case of an increase in value.

The downside of this type of loan though is that the risks are also multiplied. This means, should the shares decrease in value, it is likely that the broker will demand payment of whatever the difference is, which means the account serves as collateral if the borrower is unable to cover whatever is lost.

HOW TO APPLY FOR A COLLATERAL LOAN?

Now that you already know some of the primary details on collateral loans, this time, we are going to look into the application process.

Generally speaking, the application process for collateral loans vary depending on factors like the type of collateral used, as well as the amount of the loan. Of course, where you apply for a collateral loan will also be factored in as some lenders have a very extensive application process, while others are not.

Just like any other loan application though, borrowers must gather some important documents that lenders need to proceed with the application. This includes documentation such as Social Security number, proof of income, as well as driver’s license and state ID.

Since this is a collateral loan, obviously, borrowers must also be able to provide documentation on the collateral itself like the title or deed for an auto or home loan. If in case the loan is secured by other personal property like bank accounts, insurance policy, or valuables, lenders may require borrowers to provide registration paperwork, photos, or other proof of ownership.

Once all necessary documents are ready, the lender or the financing company will then prepare the loan paperwork. They will also gather signatures from the borrower, and will also do a verification process to ensure the borrower’s eligibility for the loan. The verification includes credit scores, income, identity, as well as the ownership of the collateral.

When all the documentation is already gathered, all paperwork will then be sent through underwriting. Underwriting refers to a process that financing companies use to check on the risk associated with the loan. After this, the lender will make a decision about whether the application gets approved or not. Depending on the company,

Depending on the company, the underwriting process can take either a few minutes or several weeks, especially for mortgage loan applications.

As soon as the loan is approved though, financing companies issue check for the loan amount to the borrower.

WHAT ARE THE PROS AND CONS OF COLLATERAL LOANS?

There’s no such thing as perfect, right? The same philosophy goes to collateral loans, while it does have benefits, it also has its share of downfalls.

Having said that, here are some of the pros and cons we found with collateral loans:

PROS

  • It offers lower interest rates as compared to unsecured loans. The existence of collateral makes it possible for lenders to provide lower interest rates to borrowers of the loan. Lending companies are assured that even if the borrower does default, they will recover if not all, at least a portion of the loan through the collateral.
  • It can help build a borrower’s credit. Lenders report the payments you make to major credit bureaus. Thus, by making payments on time, a collateral loan can definitely help you build your credit score.
  • It provides loan opportunities for people with imperfect credit history. Because of the collateral, lenders are more willing to take a risk on borrowers with imperfect credit history. They are assured that no matter what happens, there’s collateral that will serve as the lender’s fallback.
  • It provides increased loan amounts. If a borrower does have extensive savings or a certificate of deposit, it would be easier for him or her to borrow larger amounts if need be.

CONS

  • The application process may take a while. Unlike unsecured loans, collateral loans require a lot of documentation. Needless to say, there’s a verification process as well. Thus, the whole application process may take a while.
  • Collateral can be repossessed by the lender due to default. Failure to pay the loan means the borrower will lose the asset, which was made as collateral to the loan. Once it is repossessed by the lender, the borrower automatically loses his or her ownership of the collateral.

FINAL THOUGHTS ON WHAT ARE COLLATERAL LOANS

To sum it all up, collateral loans are ideal for people who own assets that could serve as collateral to the loan. While it does have its risks, the fact that the interest is lower as compared to unsecured loans should make it a valuable choice among borrowers.

Have you thought of getting a collateral loan anytime soon? How do you find it so far?

We hope that through this, we were able to provide you essential information/answers to the question, “What are collateral loans?”

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Investment Apps and Websites

Navy Federal Credit Union Mortgage Review: Your Ultimate Guide

If you are looking at getting a mortgage anytime soon, this Navy Federal Credit Union mortgage review will provide you essential information that you need to be able to come up with an informed decision – whether this lending company is the way to go or not.

Navy Federal Credit Union Mortgage Review

In a report published by Statista, it says that the “mortgage industry of the United States has gone through several distinct phases of evolution that have allowed it to reach its current status as the largest and most complex home-financing market all over the world.“

Year after year, the numbers continue to rise, and in fact, there is no sign of a decrease in numbers. Mortgage loans have become (and would probably stay as it is) the country’s largest of debt among American consumers.

As of 2018, the total value of mortgage debt outstanding in the United States amounted to $15.4 trillion, and again, experts predict this number is set to rise even in the future.

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If you are eyeing to engage in mortgage debt anytime soon, the good news is, there are a lot of lending companies or financial institutions that offer such products and/or services.

You got a lot of options to choose from, and in fact, one of them is the Navy Federal Credit Union, which is what we are going to talk about today.

Through this Navy Federal Credit Union mortgage review, we hope to provide you with all the information you need before you head on to the company and apply for a mortgage.

In particular, we are going to tackle the following:

  • Who is the Navy Federal Credit Union?
  • What are the Navy Federal Credit Union mortgage products available?
  • Who qualifies for a Navy Federal Credit Union mortgage?
  • How to apply for a Navy Federal Credit Union mortgage?
  • Important things you need to know about Navy Federal Credit Union mortgage
  • What are the pros and cons of the Navy Federal Credit Union mortgage?

WHO IS THE NAVY FEDERAL CREDIT UNION?

Established in 1933, the Navy Federal Credit Union offers a number of financial services to particularly to its military members. The Navy Federal Credit Union serves over 9 million members of the military community across all 50 states.

All qualifying members may obtain mortgage products, which include Federal Housing Administration loans, Veterans Affairs loans, as well as conventional loans, and mortgage refinancing. 

As a member of the credit union, one may qualify to borrow money for up to $50,000. Meanwhile, Navy Federal’s maximum annual percentage rate (APR) for personal loans is 18%, which is considerably lower as compared to the maximum APR many other lenders out there.

Apart from military service members, Navy Federal Credit Union also opens its doors for membership among military members’ families. Thus, they too can get competitive loan rates and top-tier customer satisfaction.

WHAT ARE THE NAVY FEDERAL CREDIT UNION MORTGAGE PRODUCTS AVAILABLE?

As mentioned, the Navy Federal Credit Union provides a wide variety of products to choose from, which include mortgages with no- and low- downpayment requirements.

In particular, the credit union offers the following:

  • VA Loan – The VA loan is available exclusively to eligible service members, as well as veterans and their spouses.  VA Loans are supported by the Department of Veterans Affairs.              
  • Conventional Fixed Rate – This particular loan type is an ideal choice for buyers who want a stable monthly mortgage payment.
  • Adjustable-Rate Mortgages – Unlike the other mortgage types, these loans start with a low fixed interest rate for the initial term and then adjust according to an index.

With a lot of adjustable-rate loan options, families who need to relocate every few years will definitely find it very useful.

But apart from current homes, Navy Federal also offers mortgages for investment properties as well as second homes.

If you want to know more about Navy Federal’s mortgage products, you may check below video from the credit union itself:

Now, if you are a member of the military or a family of a military member, you may take advantage of Navy Federal’s HomeBuyers Choice Mortgage and the Military Choice Mortgage, both are cornerstone loans that are specific to military members and their families.

Just to give you an idea, here’s a quick brief about the two loan products:

  • HomeBuyers Choice – This program is ideal for first-time homebuyers. The HomeBuyers Choice offers fixed-rate loans of 15 or 30 years with up to 100% financing. It also does not have any mortgage insurance premiums. While it does charge a 1.75% funding fee, it can be waived in favor of a higher interest rate. This also helps minimize the amount of money you need at the closing of the loan.
  • Military Choice – Meanwhile, although the Military Choice program has the same benefits as the HomeBuyers Choice, it does come with special pricing particularly on mortgage interest rates and origination fees for active-duty and veteran borrowers based on the lender. The credit union’s standard 1% loan origination fee may be rolled into the loan. It can also be waived in exchange for paying a higher mortgage rate, which may further reduce the amount of money you need to close the account. This particular mortgage product is an ideal choice for service members, reservists as well as veterans who have already used up their VA loan benefit.

Apart from these amazing options, the credit union also offers fixed-rate home equity loans with 5-, 10-, 15- and 20-year terms. It also offers a home equity line of credit (HELOC) that comes with a variable interest rate. With this option, the good thing is that for the former option, the lenders do not charge the application or origination fee. As with the HELOC, it does not charge annual or inactivity fees like what other lending companies do.

WHO QUALIFIES FOR A NAVY FEDERAL CREDIT UNION MORTGAGE?

This Navy Federal Credit Union mortgage review will not be complete if we are not going to provide you with the requirements in order to qualify for the mortgage.

Fortunately, the credit union did not set a minimum FICO credit score for members, which means, even if you do not have a good credit score, you may be able to loan money from them.

Furthermore, the credit union has no cap on its debt-to-income ratio.

Meanwhile, although some of Navy Federal’s loans do not require down payment, others do but the amount depends on the type of loan the borrower applies for.

Although it seems that borrowing money from Navy Federal is a breeze with its not so strict requirements, becoming a member of the Navy Federal Credit Union is a different story. Please note that to be able to apply for a mortgage debt with Navy Federal, you need to be a member of the credit union.

Navy Federal Credit Union does have strict membership requirements. To be able to qualify and join the credit union, you must either be:

  • an active member or a veteran of any branch of the military
  • a Department of Defense civilian employee
  • a contractor working at a DOD installation
  • a family member of a military member

So, if you belong to any of the above groups, you are definitely qualified to join and be a member of the Navy Federal Credit Union.

Additionally, please take note that only active service members, veterans, and their spouses can qualify for a VA loan. If you are a member through your grandmother or your brother though, you will have to choose another loan offer from the credit union.

HOW TO APPLY FOR A NAVY FEDERAL CREDIT UNION MORTGAGE?

As we have mentioned, to be able to apply for a mortgage, you need to be a member of the Navy Federal Credit Union. Being a member makes the loan application process easier.

Anyway, Navy Federal does have a digital application platform called HomeSquad. You can use this app to get a preapproval for a mortgage. Since it’s done online, there are cases when a borrower gets approved immediately.

The online application process is quite simple and easy. You can just upload documents, connect to your bank accounts when you need to very assets, as well as get notifications whenever you reach certain milestones, check the status of your loan, as well as get personalized help from Navy Federal’s representatives.

If an online application is not feasible, you may opt to start an application over the phone instead. Otherwise, you may visit any Navy Federal branch near you to apply in person.

Regardless if you apply online, over the phone, or in person, there is always a home loan advisor available to help you choose the right mortgage for you depending on your situation.

With Navy Federal’s underwriting model, it allows loan officers to evaluate your situation using alternative credit data instead of observing strictly to traditional credit scores. By taking the full financial picture into consideration, Navy Federal is able to evaluate a borrower’s risk.

Some of the things that a loan officer may look into is if the borrower pays rent and other bills on time, if he or she keeps a Federal banking account in good standing and if the borrower makes timely payments on other credit accounts. All these are taken into account to determine the qualification of a borrower for a loan.

IMPORTANT THINGS YOU NEED TO KNOW ABOUT NAVY FEDERAL CREDIT UNION MORTGAGE

At this point in our Navy Federal Credit Union mortgage review, we are going to talk about other essential matters regarding the credit union’s mortgage. This includes the following:

  • Loan Amount
  • Loan Terms
  • Rates
  • Fees
  • Customer Service
  • Online Features

Let’s take a look at each of these items to know more –

Loan Amount

Navy Federal Credit Union mortgage loan amount is on a case to case basis. Meaning, it depends on entitlement, as well as your home location. That is why we highly recommend either calling or visiting a Navy Federal branch near you to know the specifics.

Loan Terms

Navy Federal mortgage terms range from 10 up to 30 years. The credit union will help determine the ideal terms for you depending on your qualifications. Again, it’s best to check with Navy Federal if you need more specific information.

Rates

Generally speaking, credit unions charge lower interest rates as compared to banks and other online lenders. With Navy Federal, the annual percentage rate gets to as low as 2.50%. The exact APR depends on a number of factors like the loan amount, the terms, as well as your overall qualification.

For your reference though, you may see below table. The data is coming straight from what’s stated on Navy Federal’s website:

Mortgage Interest Rate (as low as) APR (as low as)
VA Loan 2.750% 3.224%
Military Choice 3.875% 4.149%
Conventional Fixed Rate 2.250% 2.535%
HomeBuyers Choice 4.000% 4.276%  
Adjustable-Rate Mortgages 2.375% 2.500%

Fees

As a borrower or a potential borrower, it is important to be well-aware of the fees that the lender might charge you for. After all, you do not want to get surprised paying for something you do not know about, right?

So, with Navy Federal, the credit union charges an origination fee of 1%, plus a 1.75% funding fee. However, borrowers are given the option to skip the origination fee is they will agree to a 0.25% increase in their interest rate.

Meanwhile, if you will opt for the credit union’s home equity loan product, this particular product does not charge an application or origination fee. More so, its home equity line of credit does not charge origination, application, annual or inactivity fees as well.

As with closing costs, it varies depending on your interest rate.

In addition, Navy Federal does not charge fees for documents, underwriting, as well as for the application.

You can also get a 0.25% reduction on their interest rate if you opt to set up an automatic payment from a Navy Federal Credit Union account specifically for home equity products.

Customer Service

One thing that Navy Federal Credit Union can brag about is its customer service.

The credit union provides superb customer service. In fact, it is rated five out of five in the 2018 J.D. Power U.S. Primary Mortgage Origination Satisfaction Study, which makes the credit union one of the bests.

Unfortunately, though, Navy Federal is not rank eligible.

As with the Better Business Bureau, Navy Federal Credit Union has earned an A rating.

According to the Consumer Financial Protection Bureau, they have received 90 mortgage-related complaints about Navy Federal Credit Union in 2018. All have been responded on a timely manner.

Online Features

As mentioned earlier, Navy Federal allows borrowers to apply for a mortgage online. At the same time, members of the union can also access and manage their accounts through its website.

WHAT ARE THE PROS AND CONS OF THE NAVY FEDERAL CREDIT UNION MORTGAGE?

While there are a number of things to like about the Navy Federal Credit Union mortgage, there are also things not to like about, and we are sharing them with you below.

PROS

  • The credit union offers a wide variety of affordable mortgage products, which are specifically designed for military members and their families.
  • Instead of relying on credit score, the credit union looks at nontraditional credit data, such as rent payments, as part of its credit evaluation for certain products.
  • It provides an online channel where members can apply for a mortgage. Essentially, the credit union provides a preapproval process and is able to make quick decisions with regards to loan applications.
  • Navy Federal Credit Union offers loans without requiring down payment.
  • The credit union does not require private mortgage insurance on many of its loans.
  • The credit union allows members to loan money of up to 100% of their equity with a home equity loan.
  • The credit union’s website is user-friendly, informative, and allows you to shop for rates online.
  • Navy Federal offers a rate match guarantee and a flexible method to lock in low-interest rates.
  • When you use a recommended real estate agent, you can get a cash-back bonus in many states.

CONS

  • Navy Federal Credit Union loans are exclusive only to military members, veterans, qualifying civilian workers, and their families.
  • The Navy Federal does not support the U.S. Department of Agriculture loans.
  • It also does not offer FHA loans.
  • It does not have a prequalification feature, which means you must be a member of the credit union and complete an actual loan application to determine if you qualify for a loan type, and what rate and terms you will be offered for such loans.

FINAL THOUGHTS ON NAVY FEDERAL CREDIT UNION MORTGAGE REVIEW

To put it simply, the Navy Federal Credit Union mortgage is an excellent choice for military members or their families who are looking for competitive rates, as well as high customer satisfaction, and more choices than other lending companies out there.

As mentioned, if you do not belong to a military family or not a member of the military though, you automatically disqualify to become a member of the credit union and enjoy its perks including competitive mortgage products.

There is honestly so much to like about the Navy Federal Credit Union mortgage products. It’s pretty much obvious as we have written so many benefits as compared to drawbacks.

If you are looking for a lending company to borrow money from, we highly recommend getting a mortgage debt from Navy Federal.

With all the information we have provided in this Navy Federal Credit Union mortgage review, we definitely can say that this is one of the best options to get a loan from if you are a military member or a family of a member of the military.

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Investment Apps and Websites

Credible Loan Review: The Best Online Loan Marketplace Right For You

One thing about this Credible loans review is that we are focusing on learning how efficient this free online loan marketplace is. Also, this will help you understand better how everything works, and hopefully help you decide whether or not Credible is the right loan platform for you.

Credible loans review what you need to know

Perhaps a lot of people will agree with us if we say that loans are inevitable. At least once in a person’s life, he or she gets a loan – it could be a personal, student, emergency or other types of loans.

Don’t feel bad if you do have an existing loan or are thinking of applying for one. Borrowing money is not a bad thing at all – what’s not good is when you run away from your obligations (that is when you do not pay the loans you made).

As we have said, loaning or borrowing money is not new. In fact, in a report published by the Chamber of Commerce, it says that there are 21.1 million outstanding personal loans in the United States. Take note that we are just talking about personal loans here. If we are going to add other types of loans, perhaps the number can be quite overwhelming.

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In the same report, it says that for personal loans alone, the average interest rates vary between 10% and 28%. You see, people do not care about how huge or how small the interest rate is — after all when you are badly in need of cash or of money, the last thing you will think about is how to pay off the debt, as well as how much the interest rates are.

While there is nothing wrong about that, people have to change that kind of thinking. We should always consider our ability to pay off the debt, otherwise, we might end up being drowned in debts plus interest rates.

Good thing there are platforms that allow you to “shop” for the best or most appropriate loan setup for you. One of these platforms is Credible. As we have mentioned earlier, it is a free online marketplace, which helps you find the perfect lender for you. Basically, Credible acts as a middle man between lenders and borrowers.

Did that spark interest in you? Do you want to know more about Credible?

If yes, then do not go elsewhere as you are in the right place already. This Credible Loans review will specifically tackle some of the most commonly asked questions among borrowers (new and old alike).

In particular, we are going to talk about the following:

  • What Credible is all about?
  • What are its key features?
  • What are the products offered?
  • How is its customer service?

CREDIBLE AT A GLANCE

Before we proceed with the more thorough Credible Loans Review, here’s a quick glance on what Credible is all about, at the same time, what it offers. This will give you an idea of whether or not Credible is an efficient platform to use.

Name of Loan Platform Credible
Fees and Charges None
Products Student Loan Refinancing, Student Loans, Personal Loans, Mortgage, Mortgage Refinancing, Credit Cards
Key Benefit Compares multiple lenders all at once

WHAT CREDIBLE IS ALL ABOUT?

Credible is an online loan marketplace that allows borrowers to shop around for different types of loans, which include student loan refinancing, private student loans, personal loans, mortgages, and credit cards.

With Credible, you can compare rates and terms from multiple lenders all at the same time. Furthermore, it has a prequalification tool, which helps borrowers save a lot of time. The tools let the borrowers see personalized rates from up to nine different lenders with just one application.

It is important to note that Credible is (again) a marketplace and not an issuer of loans or a lender. What it primarily does is it connects borrowers with an array of lenders. Credible makes every borrower’s life easier as it helps you search for the best personal or student (or whatever type of) loan out there.

Credible is based in San Francisco, USA, and has currently had 157 employees. More so, at the moment, the company is working with more than 280 partner lenders.

WHAT ARE ITS KEY FEATURES?

So, you already know what Credible loans are all about. This time around, we’ll look into the company’s key features.

Credible’s key features include:

  • No Fees:  Credible does not charge you for using their service. It’s ultimately free for use for anyone.
  • Risk-Free Comparison:  With Credible, you can compare your options without having to worry about your credit score. It will not affect your credit score at all.
  • Shop with Confidence:  By using Credible, you do not have to worry about the information you share as the company assures you it will never share your personal information with anyone without asking your permission.
  • Safe and Secure:  Credible uses 256-bit encryption and SSL technology keeps your data secure. These are industry standard, thus, you should not worry about the safety and security of your transactions as well as the information you share online through the Credible website.
  • Power of Choice:  Credible thoroughly vet their lenders. That way, you can compare the best options there is.
  • Real People, Ready to Help:  In case you have questions or clarifications, Credible has a team of experts called, Client Success, who are always ready to help.

WHAT ARE THE PRODUCTS OFFERED?

As part of our Credible loans review, we are, of course, going to look into their list of products. Surely you know what you are looking for, but it is also nice to be aware of the other products the company offers. Who knows, you might just need of these in the future, right?

Anyway, so here are what Credible currently offers:

STUDENT LOAN REFINANCING

If you wish to find a lender to refinance your student loan, all you have to do is follow below steps provided by Credible:

STEP 1: Fill out a quick simple form. – With just one form, you get to access options from top lenders (who Credible are in partnership with). During this stage, checking your rates will not affect your credit score. Also, your information will not be shared with lenders yet.

STEP 2: Choose the option you like. – During this phase, you get to easily compare your prequalified options in just one place. You can also opt to use Credible’s comprehensive tools to quickly look for a plan ideal for you. Also, you may get annual rates according to your credit profile (no estimates).

STEP 3: Provide your loan details. – At this point, you may use Credible’s easy import tools to add the loans you want to refinance. You may also be asked to provide additional information about yourself. Once done, expect to receive your final offer in as quickly as one business day.

Meanwhile,  in order to qualify for a refinancing of student loan, lenders will look into a number of factors like your credit as well as your earnings history, the school you graduated from, your college degree, your credit report, as well as the size of the loan you want to apply for refinancing.

STUDENT LOANS

By availing Credible’s private student loans, you get to pay for college after you hit federal loan limits. While there are so many student loan options out there, by using credible you get to take advantage of the following benefits:

  • Multiple lenders compete to get you the best rate
  • No filling out duplicate forms
  • Get actual rates, not estimated ones
  • Finance almost any degree
  • Flexible repayment plans
  • San Francisco-based customer support 7 days a week
  • 3-way phone support connecting you and lenders

In addition to the above-mentioned, rest assured that the process will not cost you anything. Credible does not charge any origination fees, service fees, or prepayment penalties.

Before we move on, know more about Credible’s Student Loan Refinancing option through this video blog by The College Investor. Click the play button below to watch the whole thing:

Private student loans can be used to pay for education-related costs, as well as living expenses that may not be covered by your federal school loans. For your reference, some uses include the following:

  • Tuition and fees
  • Room and board
  • Housing utilities
  • Meals and groceries
  • Books
  • Supplies
  • A personal computer you’ll use for school
  • Dependant childcare expenses

Meanwhile, while each lender has their own requirements as to who qualifies for a private student loan, some of the basic requirements include:

  • Have a qualifying credit score (or a co-signer with one)
  • Have a qualifying income and debt-to-income ratio (DTI) (or a co-signer with one)
  • Be enrolled in an eligible education program
  • Be a U.S. citizen or legal resident with a Social Security number
  • Be at least 18 years old and hold a high school diploma or equivalent (or have a co-signer)
  • Use the loan for education purposes only

PERSONAL LOANS

One thing that will catch your immediate attention is that Credible has the “Best Rate Guarantee”. That is how confident the company is about their personal loan service.

Three things that Credible personal loan offer:

  • Rates from 4.99% APR*
  • Loan amounts from $1,000 to $100,000
  • Compare rates from multiple lenders in just 2 minutes

Credible takes pride in having a fast process, low rates, and no stress personal loan service. You basically have to follow these three simple steps:

  • Find loans you qualify for (and compare the rates)
  • Complete your application online
  • Close your loan (by signing documents)

With Credible, you can avail a personal loan for different purposes like debt consolidation, credit card refinancing, home improvement, as well as bad credit loans.

As to how one can qualify to avail a personal loan through Credible, the requirements vary from one lender to another. However, some of the most common qualifications these lenders look for are as follows:

  • At least 18 years of age
  • Must be a citizen or a permanent resident holder of the United States
  • Must have a valid Social Security number
  • Must have a steady income
  • Must have a good credit history

Meanwhile, with regards to allowed loanable amount, this will depend hugely on the borrower’s credit score and the person’s debt-to-income ratio (this refers to the amount of your monthly income that goes to your rent, credit card bills, car payments, etc.). The upper limits for online personal loans depend from one lender to another but usually falls between $35,000 and $50,000. With lenders on the Credible marketplace, however, qualified borrowers for a personal loan can borrow up to $100,000.

MORTGAGE

If you are looking for a lender that offers mortgage loans, then Credible is also perfect for you. This online loan marketplace also provides you with the best mortgage lenders out there.

To borrow money, all you need to do is go through Credible’s very easy mortgage loan process:

  • Get pre-approved in 3 minutes
  • Compare lenders and choose a rate
  • Submit your documents online
  • Finish your loan with Credible

What makes Credible’s mortgage product different from others is that it is “pain-free”. What does that mean? Well, Credible provides instant streamlined pre-approval process, they keep your personal data private, and lastly, they have a modern approach to mortgages.

One of the things that people look into when shopping for a mortgage loan is the rate. With Credible, you will be presented with both an interest rate, as well as an annual percentage rate and APR. This way, you get to choose the best option that is suitable for you.

With regard to requirements, it varies from one lender to another. However, some other common criteria that lenders look for are as follows:

  • Minimum credit score (The rule is — the lower your credit score, the higher the interest rate.)
  • Minimum down payment (Usually, homebuyers are required to make a down payment that is equivalent to 20% of the home’s value. But with Credible, again, it depends on the lender’s requirement.)
  • Maximum debt-to-income ratio (This represents the percentage of your monthly income that’s required to meet ongoing expenses.)
  • Maximum loan-to-value ratio (This reflects how big the mortgage is in relation to the value of the home you’re financing.)

In addition, there are documents that you will need to keep on hand when applying for a mortgage loan. These documents will be used to verify your identity, as well as your income. These documents include:

  • Drivers license
  • Social Security card
  • Your two most recent bank statements
  • Signed tax returns for the last two years
  • Two years of W-2 forms
  • An estimate of the home’s value (an appraisal or recent sale price)
  • Documentation of the source of funding for your down payment (for home purchase mortgages)
  • For new home purchases, you’ll also need to submit the home purchase contract

MORTGAGE REFINANCING

With Credible’s mortgage refinancing, you get to compare lenders and save on interest, get cash out to pay off high-interest debt, and you get to prequalify in just a few minutes! That quick!

Furthermore, what makes this service different from others is the fact that Credible provides you with actual rates from multiple lenders, it uses smart technology by streamlining questions and automating uploaded documents, as well as providing you with end-to-end experience.

Before you apply for a mortgage refinancing, Credible lets you look for loan estimates from different lenders. You may request by providing the following details:

  • Your name and income
  • The property address
  • The property’s estimated value
  • The amount of the mortgage (how much you want to borrow)

Once you have already chosen the best loans and lenders based on your needs, you may process with your loan application. Usually, lenders require certain documents to verify both your assets and income.

Some of the documents required are as follows:

  • Contact info for your employers for the last two years, and copies of pay stubs for anyone who will be on the mortgage
  • Recent bank statements
  • Two years of W-2s and tax returns
  • Bank statements for two to three months
  • Records of investments and securities including stocks, bonds, and life insurance
  • Information about ongoing debt obligations including student loans, credit cards, and car loans

Again, requirements, as well as the criteria to qualify for a loan, depends from one lender to another.

Meanwhile, with regards to how much you can qualify for mortgage refinancing, this will depend on three vital factors, which are:

  • Your home’s appraised value
  • Your monthly income in comparison to your monthly debt (known as your debt-to-income ratio)
  • Your credit score

It is worth sharing that Credible’s mortgage marketplace is well-integrated with credit bureaus as well as lenders.

CREDIT CARDS

Credible also offers a comparison between credit cards. The comparison will be based on rewards points up to building credit. This gives you better options and allows you to make informed decisions when it comes to your credit card choices.

This service is ideal for those who are new to the idea of using credit cards, or those who want to make better choices when it comes to the cards they use.

With Credible, you can filter your credit card choices based on the following types:

  • Cash Cards
  • Travel Cards
  • Balance Transfer Cards
  • Low-Interest Cards
  • Zero-Percent Cards
  • Secured Cards
  • Student Cards

HOW IS ITS CUSTOMER SERVICE?

Another important aspect of this Credible loans review is the customer service support that the company provides. Since this one’s an online loan marketplace, customer service is a major thing.

Credible is known for its great customer service. The company has a team of people who are available to help you out 24/7 via phone, email, or live chat.

If we may add, Credible is highly rated with an A+ Better Business Bureau grade in terms of service. Thus, it is safe to say that you will not go wrong with Credible.

FINAL THOUGHTS ON CREDIBLE LOANS REVIEW

You see, Credible offers an array of loan choices. Basically, some of the most common loan products. While there are so many other online loan marketplaces out there, it has its own unique features that make it popular especially to those looking for lenders.

Having presented all the loan options offered by Credible, do you think it’s the right one for you?

Well, we do hope that this Credible loans review has helped you in making a decision. More so, we hope that by using Credible (which is for free), you get to find the best lender based on your needs.