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Better.com Mortgage Review: A Seamless Online Experience with Low Rates

by: Sarah Li Cain  |  Jan. 11, 2021

The Ascent is reader-supported: we may earn a commission from offers on this page. It’s how we make money. But our editorial integrity ensures our experts’ opinions aren’t influenced by compensation.

Better.com is a great fit for home buyers and refinancers who are looking for transparency during the mortgage process and a lender that offers competitive mortgage rates. Another value-added perk is that Better.com closes faster than the industry average. While nearly every mortgage lender is experiencing longer than average closing times with rates so low in 2021, Better.com's digital experience helps the lender move faster than its competitors. This Better.com mortgage review will highlight the pros and cons and help you figure out if the lender is right for you.

Ratings Methodology
2020 Award Winner
Better.com

Check Rates

Check Rates

On Better.com's Secure Website.

Better.com

Better.com

Apply Now

On Better.com's Secure Website.

Best for: Refinancing and seamless online experience Better.com

Rating image, 5.0 out of 5 stars.
5.0 stars
ToolTip Icon for Star Rating. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. = Best
= Excellent
= Good
= Fair
= Poor
Bottom Line

Has the right combination of features and perks, including no origination fees, low mortgage rates, and an online experience that helps homeowners cut their costs while saving time. Case in point, borrowers can secure preapproval in minutes. The lender also offers $150 off closing costs when applying through The Ascent site.

Apply Now

On Better.com's Secure Website.

Min. Credit Score

  • 580 (FHA)
  • 620 (other mortgage products)

Min. Down Payment

  • 3.5% (FHA)
  • 3% (conventional loans)

Key Features

  • No origination fees
  • Instant loan estimates
  • 100% online application
  • $150 off closing costs for The Ascent readers

Loan Types
  • Conventional
  • FHA
  • Jumbo
Fixed Rate Terms

  • 30y, 20y, 15y

Adjustable Rate Terms

  • 10/1, 7/1, 5/1

Full Better.com mortgage review

2020 award winner

Better.com mortgage topped the podium in the following categories for The Ascent's 2020 mortgage lender awards:

  • Best mortgage lender for refinancing
  • Best lender for online mortgages

This mortgage lender is a good fit for: Homeowners wanting to refinance to a lower interest rate while cutting costs. Better.com Mortgage offers many of the most popular terms and products, making it a fit for most people. USDA and VA loan borrowers will want to look elsewhere.

Pros

  • Low rates
  • Low price guarantee
  • No origination fees
  • Fast pre-approval
  • Fixed rate and adjustable rate options

Cons

  • Doesn't offer VA or USDA loans
  • No customizable terms

Top perks

Low rates and price guarantee

Better.com mortgage already consistently beats many lenders rates, but it's price guarantee ensures the lender will beat competitors. Better.com will match a competitors offer and attempt to beat it by $100. If the lender can't the $100 is yours to keep

$150 off closing costs

Apply through The Ascent site and receive a $150 discount for closing costs. This exclusive perk can help you keep more money in your pocket and reduce the cost of already low fees that the lender offers.

No origination fees

Many mortgage lenders charge for the privilege of getting a loan. Better.com charges no origination fee, helping you save on your overall closing costs, which can range anywhere from 0.5% to as high as 2% depending on the lender

Quick loan estimates and pre-approval

Better.com offers both rate quotes and pre-approval letters within minutes, making it easier to shop around for lenders efficiently. Prospective homeowners can also take action faster on a new home purchase in a competitive market. Other lenders can take upwards of a few days to issue a pre-approval letter. Better.com offers this letter using its automated technology to digitally underwrite your loan so that when you make an offer on a house, you can make your bid more competitive -- sellers will see that you're fully underwritten. In other words, Better.com's mortgage pre-approval letter can help you stand out since it means it shows you're more financially ready to make such a large purchase.

Lock in your interest rate on demand

Applicants can lock in their interest rate whenever they want during the loan process. Most lenders don't guarantee the rate you get in your initial quote, but Better.com will hold the mortgage rate for you so you can complete your application with the knowledge that it won't change by the time you close on your home.

100% online application process

Most of the closing process is done completely online (with the exception of signing the final documents). Simply fill out their online application form and submit any necessary documents using their secure system.

Access to a dedicated loan officer

Once you complete the pre-approval process, you'll be assigned a loan officer and will receive contact details. You can contact this person during office hours throughout your loan application process.

Discounts available

Borrowers can receive up to $2,000 in lender credits through the Better Real Estate discount program. To be eligible, you'll need to choose Better Mortgage Corporation as your mortgage lender and a real estate agent who was referred to you by Better.com.

What could be improved

Availability in all states

Currently, borrowers in Massachusetts, Minnesota, Hawaii, Nevada, New Hampshire, Virginia, and Vermont can't get a mortgage with Better.com.

Loan product availability

Unfortunately, you won't be able to take out a USDA home loan or VA loan. Plus, this lender doesn't currently offer home equity loans or HELOCs.

Alternatives to consider

It's smart to shop around for the best mortgage rates and terms. Here are a few other mortgage lenders to consider.

Rocket Mortgage is one of the most well-known lenders in the mortgage space, and it offers an intuitive online application, much like Better.com. You can also get an instant online approval, which you can use right away to start shopping for homes. The lender offers customization options (applicants can choose a term anywhere from 8 to 29 years) for applicants with a wide range of credit scores.

Read full Rocket Mortgage review

SoFi Mortgage is another popular mortgage lender worth considering due to their membership discounts and competitive interest rates. Applicants can choose from fixed- or variable-rate mortgages and avoid origination and application fees. SoFi's underwriting also looks beyond your credit score, weighing other factors such as your employment situation, income, and history of on-time payments. You can also put down as little as 10% for your down payment and receive up to $500 in loan processing fee discounts.

Read full SoFi Mortgage review

How to qualify

Qualifying for a Better.com mortgage depends on your financial situation and whether you live in a state where the lender offers loans. Underwriters look at the amount of debt you have, your credit score, and other factors to determine the likelihood that you'll pay your mortgage on time.

One of the main factors Better.com looks at (much like other lenders) is your debt-to-income ratio, or DTI. This number, expressed as a percentage, reflects how much monthly debt you have compared to your gross monthly income. Lenders use it to determine how large a mortgage you can afford.

Better.com offers loans with DTIs as high as 50% for the most creditworthy borrowers.

In addition, Better.com offers conventional loans for those who have a FICO® Score as low as 620, but the higher yours is, the lower your interest rate is likely to be.

A Better.com mortgage is right for you if:

Better.com is one of the most competitive lenders on the market, considering it offers a faster loan process and fewer fees than most.

Not sure if it's right for you? Here are a few indicators you should go with this lender.

You're refinancing. Better.com offers some of the most competitive rates you'll find.

You don't like paying extra fees. Given that a mortgage is probably the largest loan you'll ever take out, you want to save as much money as you can. Better.com doesn't charge loan officer commissions, nor application, underwriting, or lender origination fees -- so you can keep that money for other expenses, such as a moving service or furniture for your new home.

You're seeking a high-quality digital experiences. This lender offers a completely online application process and the ability to underwrite your loan using automated technology. If you know your way around a computer, getting a mortgage from Better.com can be fast and easy.

Check Rates with Better.com

About the Author

Sarah Li Cain
Sarah Li Cain

Sarah Li Cain has been writing financial advice and reviewing financial products since 2015. She has contributed to outlets including LendingTree, Business Insider, Redbook, Bankrate, and the Financial Planning Association.

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