Axos Bank Mortgage Review: Flexible Loans to Serve More Borrowers

Axos Bank offers a bigger variety of home loan options than most lenders. That includes mortgages with flexible underwriting guidelines that could help more borrowers qualify. To get the greatest financial benefit, borrowers also need to hold a deposit account at Axos Bank. Check out our full Axos Bank Mortgage review to find out if this is the right mortgage lender for you.

Full Axos Bank Mortgage review

This mortgage lender is a good fit for: Any borrower looking for a mortgage with no lender fee. The Axos Bank Mortgage lender fee is waived for Axos Bank checking account customers, and it's easy to become a customer. Axos Bank is also a great lender to consider if you need a super jumbo mortgage.

Top perks

No lender fee

At Axos Bank Mortgage, a borrower can get a home loan with a $0 origination fee. To be clear, the bank has a standard $995 lender fee, but this is waived if the mortgage is for $250,000 or more and the customer has an Axos Bank account with a $500 minimum balance at the time the initial closing disclosure is issued. If you don't have an Axos Bank Rewards Checking account, you can open one during the application process. For account holders who need a mortgage under $250,000, the fee can't be waived -- but it can be reduced by $200 as long as borrowers meet Axos Bank's deposit account requirements.

Cash back credit

The rewards checking account connection is a big differentiator between Axos Bank Mortgage and its competition. Axos Bank offers its mortgage borrowers an annualized 3% cash back credit on mortgage payments (principal and interest), up to $100 monthly. To qualify, you must maintain a minimum average daily balance in your Total Loan Rewards Axos checking account.

Fully online application process

Axos Bank is an online bank. Customers can complete the entire streamlined process online. You can easily apply for a mortgage, upload documents, and check your loan status throughout the process, entirely online. (Closing is still in person.)

Full-service bank

Axos Bank is a full financial service institution. That's a plus for someone who likes the convenience of maintaining several accounts under one roof. Axos Bank offers a financial product menu that can meet many customers' needs:

• Cash back checking with no monthly maintenance fee
• High-yield savings accounts
• Certificates of deposit
• High-yield money market account
• Auto loan program
• Various business accounts including checking and money market accounts

Great for jumbo loans

Axos Bank specializes in jumbo mortgages, which are loans for amounts above the limits set by Fannie Mae and Freddie Mac. The limit for a single-unit property in 2024 in most U.S. counties is $766,550. The limit is partly based on the median home value in the county, so some high-cost areas have higher limits. For example, the limit for a single-unit property in Honolulu is $1,149,825.

A loan under the limit is called a conforming loan, and a loan above the limit is a jumbo loan. It can be a little harder to qualify for a jumbo loan. Axos Bank Mortgage offers jumbo and super jumbo mortgages as high as $30 million, with up to 90% loan-to-value (LTV) ratio.

Great for interest-only loans

Axos Bank Mortgage offers interest-only mortgages, which means borrowers can make interest-only payments on a loan for a set period. (If you do this, the amount you owe won't go down even though you're making payments.) Interest-only mortgages aren't terribly common, but they can help keep your initial monthly payment low. With an interest-only mortgage, you typically have the flexibility to pay down principal (the original amount you borrow) if you choose. Interest-only mortgages aren't the best choice for everyone, but they can make sense in certain situations.

Varied product selection

In addition to standard conforming loans, Axos Bank Mortgage offers VA and FHA mortgages, HELOCs, jumbo, and super jumbo loans.

Axos Bank Mortgage can cater to borrowers who don't fit standard lender guidelines. Axos Bank Mortgage advertises "personalization for complex financial situations," as well as for properties that aren't owner-occupied. This lender offers more nontraditional loan types than most other lenders. That includes investment property loans, mobile home park loans, mixed-use property loans, and mortgages for foreign nationals (sometimes called ITIN loans). Axos also offers asset-based lending programs, bank statement loans for self-employed borrowers, and other harder-to-find mortgages.

Home equity options

Axos Bank Mortgage offers home equity lines of credit (HELOCs). A HELOC is a credit line (typically with a variable rate) that you can draw money from as needed.

Refinancing

In addition to its extensive list of purchase mortgages, Axos Bank Mortgage also offers mortgage refinancing. A mortgage refi can help a borrower lower the interest rate, take cash out against equity, eliminate mortgage insurance, or a combination of the three.

Rate quote tool

Axos Bank has a handy mortgage rate quote tool on its website. You enter details like the purchase amount, your down payment amount, your credit score, and how you plan to use the property, and Axos will give you interest rates for 10-, 15-, 20-, and 30-year fixed-rate loans. You'll also be able to explore how your decision to pay (or not pay) for mortgage points changes the mortgage rate. You can play around with the down payment size and credit score to see how those factors affect the cost of your loan.

Note that you do need to enter an email address and phone number to use this tool.

What could be improved

Lender fees

Axos Bank Mortgage advertises a $0 lending fee. But it only applies to customers who meet certain conditions. If you don't have (or don't open) a checking account with the bank, you pay $995. If you have an account, but your mortgage is under $250,000, the fee is $795. So it's not a $0 lender fee for everyone.

In-person guidance

Axos Bank is fully online. If you want in-person guidance in applying for a mortgage, Axos Bank Mortgage probably isn't the best option for you.

Customer support options

Axos Bank has very limited live chat customer service for mortgage applicants. The best (and sometimes only) way to get help is to contact the bank by phone. In a nutshell, customer service isn't an Axos Bank highlight.

USDA loans

Many lenders offer USDA mortgages, which allow buyers to get zero-down mortgages on properties in designated areas, usually rural. Axos Bank doesn't offer this loan type. If you're interested in the USDA rural financing program, you need to look elsewhere.

How to qualify

Axos Bank's mortgage qualification process is 100% online. Customers can get a rate quote in just a few minutes. An Axos Bank mortgage consultant walks you through the streamlined application and documentation process.

Because Axos Bank specializes in nontraditional mortgages like jumbo and nonconforming loans, lending standards can vary significantly. Applications for specialized loans are evaluated individually.

Mortgage lenders, including Axos Bank, look at your credit score, debt-to-income ratio, equity (or down payment), and available cash.

You'll need a 620 credit score to qualify for an FHA loan or VA loan from Axos Bank Mortgage. Your DTI should be under 43%. There may be a little more flexibility under some circumstances. For instance, if you have a low DTI and high cash reserves, you might qualify for an exception.

The available cash (or "cash reserves") requirement varies from one loan program to the next. Most loans require that you have enough money set aside to cover between one and 12 months of expenses. This money does not have to be in a savings account, though. It could be a vested retirement or insurance account, a trust, a certificate of deposit, or certain other types of accounts.

How are Axos Bank Mortgage refinance rates?

Axos Bank Mortgage's refinance rates are competitive. Axos Bank Mortgage charges more in fees to get its advertised refinance rates, compared to purchase rates. That makes the mortgage refinance rates a little more costly.

How are Axos Bank Mortgage rates compared to national averages?

Axos Bank Mortgage's rates trend a little higher than the national average. To see them, you need to use the tool on the lender's website. You'll answer basic questions about the loan, and after you provide contact information, you'll be shown rates you might qualify for. On the day we checked, the Axos Bank Mortgage 30-year fixed-rate loan to purchase a primary residence clocked in a little higher than the national average, and you'd need to pay for mortgage discount points to get the advertised rates. A point costs 1% of your loan amount and typically lowers the rate by about one-eighth of one percent.

Axos Bank Mortgage is right for you if:

• You're an Axos Bank checking account customer, or are willing to become one. The cash back program is one of the most compelling incentives we've found.
• You need a jumbo mortgage (in excess of $766,550 in most parts of the country).
• You want an interest-only mortgage.
• You need a nonconforming loan.
• You are fine with a fully online process with minimal customer support.