Tag: refinancing

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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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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

Navient Student Loans Review: A Borrower’s Guide

This Navient Student Loans review will provide you a number of reasons why you should still consider getting a loan from this company regardless of the controversies it has been involved in recent years.

Navient Student Loans review

Navient is one of the largest federal student loan service provider in the United States. It is known for helping student borrowers go through a long-term process of student loan repayment.

While it has established itself as a student loan giant, as we earlier mentioned, unfortunately, in January of 2017, the Consumer Financial Protection Bureau (CFPB) sued Navient. CFPB claims that the company has cut corners to be able to save on operating costs. Furthermore, it says that the lending company did an overall poor job in terms of helping borrowers in paying off their loans.

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Speaking of student loans, in an article published by Forbes, it says that Americans have recorded $1.6 trillion student loan debt in 2020. This amount was collectively owed by 45 million borrowers. Based on this figure, “U.S. Student loan debt is now the second-highest consumer debt category,” says Forbes. It runs behind mortgage debt and higher than credit cards and car loans.

Furthermore, the report says that the “average student loan debt for members of the Class of 2018 is $29,200, a 2% increase from the prior year.” The data came from the Institute for College Access and Success.

You see, student loan debt is such a big deal.

If you are a student loan borrower, rather you are planning to apply for a student loan, it is important to take time to check financial institutions that offer such service, and compare.

One of the financial institutions that offer student loans is Navient.

So, to be able to do this Navient student loans review, and hopefully, help you gauge whether it’s the right lending company for you, here are our guide questions:

  • What is Navient?
  • What are the different types of Navient student loans?
  • What are the repayment options for Navient student loans?
  • Does Navient forgive student loans?
  • Is refinancing possible with the Navient student loan?
  • What are the pros and cons of getting a student loan from Navient?
  • How to contact Navient?

WHAT IS NAVIENT?

Navient is one of the most popular student loan providers in the United States. In fact, it is one of the financial institutions that the Education Department contracts with to manage student loans.

Navient used to be part of Sallie Mae. However, in 2014, the two companies formally split up into two separate businesses. Sally Mae stayed in-charge of handling private student loans, while Navient focused on handling federal student loans.

Headquartered in Wilmington, Delaware, Navient currently serves almost 6.5 million borrowers. At the same time, the company manages a portfolio of about $227 billion federal student loans, which makes the company third-largest of the federal loan servicers.

Apart from providing federal student loans, the company also provides loan servicing for a portfolio of private student loans.

Navient Lawsuits and Complaints

Earlier, we mentioned that company faced one of its greatest hurdles when the Consumer Financial Protection Bureau (CFPB), which is a government agency that oversees the financial industry, filed a suit against the company in January 2017. The CFPB claimed that Navient misallocated student loan payments and that it gave inappropriate advice as well as inaccurate information. Such actions lead to borrowers failing at every state of repayment.

Furthermore, attorneys general in California, Illinois, Pennsylvania, and Washington also filed legal claims against the lending institution.

The student loan giant, though, called all claims unfounded and promised to “vigorously defend” against them. In June 2018, the company published a fact sheet, which was posted on its website. It says that the suits targeted the company “based on unannounced servicing standards applied retroactively and only against one servicer.” The company also stated that Navient’s borrowers are 37% less likely to default on student loans as compared to other student loan servicers.

Last year, the company started issuing refunds averaging about $770 each to 80,000 veterans who were overcharged for their student loans. Navient will have to process payments of $60 million in total.

In addition, Navient also faces nearly 26,000 formal complaints coming from consumers, which were filed at CFPB. The number is by far the biggest percentage a single student loan servicer got ever.

Some of the complaint made has something to do with receiving bad information, as well as having trouble with how the company handles payments.

WHAT ARE THE DIFFERENT TYPES OF NAVIENT STUDENT LOANS?

As part of this Navient student loans review, we are going to look into the different types of student loans that the company offer. This way, you’d your options.

As mentioned earlier, while Navient focuses on providing federal student loans, it also provides private student loans.

FEDERAL STUDENT LOANS

Navient is one of nine student loan servicers that is used by the Education Department to service federal student loans, which include the following:

  • Direct subsidized loans
  • Direct unsubsidized loans
  • Parent PLUS loans
  • Grad PLUS loans
  • Federal Family Education Loan Program (FFELP)

So, if you have federal student loans, you were assigned a student loan provider or services by the U.S. government through the Department of Education once your loan funds were first distributed.

Sadly, borrowers do not have a choice. They cannot choose their loan services, which means, if the Education Department assigns you to Navient, even if you do not like the company, you have no choice but to accept.

PRIVATE STUDENT LOANS

Navient also provides private student loans, and these loans come from a variety of lenders, which include banks, credit unions, and other finance companies.

Navient’s private student loans have different repayment plans available. Choosing a repayment plan is usually at the lender’s discretion.

WHAT ARE THE REPAYMENT OPTIONS FOR NAVIENT STUDENT LOANS?

One thing to particularly like about Navient is that it gives you access to all types of federal repayment programs. More so, it also offers repayment programs to those under private student loans.

With regard to federal student loans, keep in mind that upon receipt of the loan, it will be automatically set up with the standard plant by default.

Meanwhile, if you are into learning how to lower your student loan debt with Navient, check this very informative video by Gamez Law Firm to know more:

Moving on, here are the different repayment plans Navient provides:

FEDERAL STUDENT LOANS: TRADITIONAL REPAYMENT PLANS

Navient offers three traditional repayment plans for federal loan borrowers. These are:

  • Standard Repayment Plan – This particular plan lasts up to ten years. It comes with a fixed payment (at least $50), and your monthly payment will be based on the total amount of your loan.
  • Graduated Repayment Plan – This plan starts with lower monthly loan payments. It will then gradually increase over the course of the loan. Typically, repayment terms are set at ten years as well. Meanwhile, monthly loan payments increase every two years.
  • Extended Repayment Plan – This plan is similar to that of the Graduated plan. However, it has 25-year terms. While it sounds good, borrowers will actually end up paying a lot when choosing this option because of the interest.

FEDERAL STUDENT LOANS: INCOME-DRIVEN REPAYMENT (IDR) PLANS

Navient also offers IDR plans, and federal student loan borrowers may opt any of the following:

  • Revised Pay As You Earn (REPAYE) – With this plan, the monthly payment is 10% of your discretionary income. Once you have made payments for 20 or 25 years for graduated loans, whatever outstanding balance you have is forgiven.
  • Pay As You Earn (PAYE) – This plan is quite similar to REPAYE except that you are not going to pay more under this plan than you would under the standard plan ever.
  • Income-Based Repayment (IBR) – This plan lets you make payments of 10% or 15% of your discretionary income. After 20 years of making payments, your loan will be forgiven.
  • Income-Contingent Repayment (ICR) – With this plan, how much you pay for the loan will be determined by your income. Just the same, your loans are forgiven after 20 years.

PRIVATE STUDENT LOANS REPAYMENT PLANS

When it comes to the repayment of Navient’s private student loans, they are mainly dependent on the terms and conditions set by private lenders.

Some of the repayment options the company provides for private student loans are:

  • In-School Interest-Only – With this plan, borrowers will only pay monthly interest payments while they are still in school, as well as during their grace period.
  • In-School Fixed – For this repayment plant, borrowers pay a $25 monthly payment while in school, as well as during grace period. Interest may capitalize on this plan.
  • Deferred – This is applicable to borrowers who would choose not to make payments while in school. Usually, no monthly payments are required up to six months after graduation. The same goes if you drop below half-time as a student. Interest will also capitalize on this plan.

DOES NAVIENT FORGIVE STUDENT LOANS?

Now that you already know the company’s repayment options, this time around, let’s talk about student loan forgiveness.

Does Navient forgive student loans?

The answer to that is a resounding YES, they do. In fact, we mentioned some of them already earlier. But for you to fully understand the rules when it comes to student loan forgiveness at Navient, read on.

For those who have federal student loans serviced by the company, you may be eligible for loan forgiveness through different government programs such as:

PUBLIC SERVICE LOAN FORGIVENESS (PSLF)

It takes ten years to qualify for a Public Service Loan Forgiveness or PSLF. Once you are done paying off the loan for 10 years, you may already apply for this program.

To qualify, borrowers must make 120 qualifying monthly payments while working full-time for a qualified employer. If requirements are met and the application is approved, the remainder of the student loan will be forgiven tax-free.

Furthermore, borrowers need to make on-time payments that are paid in full. They also need to move their loans to one of the found IDR plans, which we already discussed earlier.

For employers to qualify, they must be part of any of the following:

  • Government organizations
  • 501(c)(3) non-profit organizations
  • Other qualified non-profit organizations
  • Full-time AmeriCorps or Peace Corps volunteers

With PSLF, your designation at work is immaterial. What only matters is that your employer qualifies.

Please take note that only payments made while working for a qualified employer counts. Payments, however, do not have to be made consecutively. Also, it may come from more than one qualified employer.

INCOME-DRIVEN REPAYMENT LOAN FORGIVENESS

Earlier, we discussed the different plans under IDR. Just to refresh your memory, with IDR, you need to make payments between 20 and 25 years, depending on the plan you are in, and then, any outstanding balance after those years will be forgiven already.

Unlike PSLF though, with IDR you will have to pay taxes. They are considered taxable income by the IRS as payments were made for a longer period of time.

OTHER OPTIONS

Not a lot of Navient borrowers know that there are actually other options for their loans to be forgiven. Most of these options though are specialized according to where you reside, your career choice, as well as other factors.

Some of the loan forgiveness options offered by Navient are:

  • Teacher Student Loan Forgiveness
  • Indian Health Service (IHS) Loan Repayment Program (LRP)
  • Nurse Corps Loan Repayment Program
  • State-Run Forgiveness Programs

Keep in mind though that qualifications vary for each. If you want to know more, better check directly with Navient.

IS REFINANCING POSSIBLE WITH NAVIENT STUDENT LOAN?

Another thing that we will look into as part of our Navient Student Loans review is if the company allows refinancing for the student loan.

Luckily, the answer to that is a YES as well.

In fact, Navient offers plenty of refinancing options.

If you are interested in refinancing your student loan with Navient, all you have to do is visit NaviRefi.com.

The downside though is that these loans are kind of exclusive as you have to be an existing member of Navient and that you must receive an invitation to refinance your loans to be able to avail the refinancing option.

To refinance your student loan, the minimum amount required is $5,001. So, if your anywhere below that, then that automatically disqualifies you.

With Navient, rates can be as low as 4.65%. However, keep in mind that rates offered to vary depending on your income as well as your credit score. How much you are trying to refinance and the term length will also be taken into consideration.

Another thing to keep in mind is that Navient prefers to refinance college graduates. Although refinancing options are still available for those who did not graduate, the chances of approval though may be significantly low.

WHAT ARE THE PROS AND CONS OF GETTING A STUDENT LOAN FROM NAVIENT?

So, our Navient student loans review will not be complete without us sharing with you the pros and cons of getting a loan with Navient.

Here they are —

PROS

  • Navient offers a variety of repayment options. As you can see from above, they have a lot of repayment options to choose from depending on your preference as well as your qualifications.
  • The company offers the opportunity to refinance your loan.
  • The company provides borrowers the opportunity to customize their monthly payments within specific parameters, set up an automatic payment from your bank, and many more.
  • Federal student loan borrowers have the access to standard lineup of federal loan benefits, which include standard, graduated, and extended repayment plans; income-driven repayment plans; forbearance and deferment; and the potential for student loan forgiveness.
  • Navient offers hardship options for private student loans such as term and rate modification, a rate reduction program, interest-only, as well as extended student loan repayment plans provided you are eligible.

CONS

While working with or getting a student loan from Navient has a lot of benefits, it surely has downsides as well. These are:

  • Navient faced its share of controversy over recent years.
  • The company also faces the most number of complaints about a single lending company based on Consumer Financial Protection Bureau (CFPB) data.
  • Attorneys general of California, Illinois, Pennsylvania, and Washington also filed legal claims against the Navient.

HOW TO CONTACT NAVIENT?

Navient can be reached by using different platforms depending on the type of loans you have. For assistance, questions, and inquiries, you can contact Navient via phone, email, fax, mailing address, and through their website.

For your reference, here’s the company’s contact information:

Navient customer service phone numbers:

Phone: 800-722-1300

TDD: 877-713-3833

International: 800-722-1300 or 317-806-0580

Fax: 866-266-0178

International Fax: 001-570-706-8563

For mail payments:

Navient – U.S. Department of Education Loan Servicing

P.O. Box 4450

Portland, OR 97208-4450

For general correspondence:

Navient – U.S. Department of Education Loan Servicing

P.O. Box 9635

Wilkes-Barre, PA 18773-9635

The cosigner can mail payments to:

Navient

P.O. Box 9988

Wilkes-Barre, PA 18773-9988

For general correspondence and submitting documents:

Navient

P.O. Box 9640

Wilkes-Barre, PA 18773-9640

FINAL THOUGHTS ON NAVIENT STUDENT LOANS REVIEW

Navient is a student loan giant. Needless to say, it is one of nine financial institutions that the Education Department contracts with to manage student loans.

With years of being in the student loan business, there surely is no doubt it’s a strong company.

However, just like any other strong companies out there, hurdles do come as well. Unfortunately, in recent years, the company do still has pending lawsuits and several borrower complaints to face, and get through.

Setting the controversies aside, focusing on what the company offers, we have to say that Navient is worth it. 

But then again, it is all up to you. Are you willing to give it a try? Do you think the company can bounce back after all these controversies?

Hopefully, this Navient student loans review was able to provide you with all the information you need about the company, and that it helped you decide whether or not Navient is worth a try or not.