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Better Mortgage Review: Guaranteed Low Price and All Digital Experience

Review Updated
Kimberly Rotter, AFC®
Kimberly Rotter, AFC®
| 1 other [ + ]
Nathan Alderman
Fact Checked: Nathan Alderman
Nathan Alderman
Nathan Alderman
Fact checker

Nathan Alderman has been a full-time Motley Fool employee since 2005, making errors his arch-enemies in a variety of roles including a six-year stint as the dedicated fact-checker for The Motley Fool's premium newsletter services. As Motley Fool Money's Compliance Lead, he makes sure that all the site's information is accurate and up to date, which ensures we always steer readers right and keeps various financial partners happy. A graduate of Northwestern University's Medill School of Journalism, Nathan spends his spare time volunteering for civic causes, writing and podcasting for fun, adoring his wife, and wrangling his two very large young children.

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Many or all of the products here are from our partners that compensate us. It’s how we make money. But our editorial integrity ensures that our product ratings are not influenced by compensation.

Better might be for you if: You want transparency during the mortgage process. Better is also a top pick for homeowners who want to refinance to a lower interest rate. This Better Mortgage review will highlight the pros and cons of going with Better, and help you figure out if the lender is right for you.

Ratings Methodology
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On Better's Secure Website.

Best for: Speedy approvals and low fees

Better

4.5/5 Circle with letter I in it. 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. 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.
 = Best
= Excellent
= Good
= Fair
= Poor

Bottom Line

Better has the right combination of features and perks, including no hidden fees, low mortgage rates, and a fast 100% online application process. Better Mortgage does not charge lender fees such as those for application, processing, and underwriting. You can save up to $2,000 in closing costs if you use a real estate agent referred to you by Better Real Estate and use Better Mortgage Corp. as your lender. The lender also offers $150 off closing costs when applying through Motley Fool Money site.

Min. Credit Score

  • 580

Min. Down Payment

  • 0-10.01%

Key Features

  • One Day Mortgage. Lock a rate, get a Commitment Letter in 24 hrs. Terms apply.
  • Close 14 days faster than industry average
  • Apply 100% online, entirely on your schedule
  • $100 billion in online home loans
  • Discount of up to $2,000 in closing costs if you use a real estate agent referred to you by Better Real Estate and use Better Mortgage Corp. as your lender.

Loan Types

  • Conventional
  • FHA
  • VA
  • Jumbo

Fixed Rate Terms

  • 10y, 15y, 20y, 30y

Adjustable Rate Terms

  • 10/6, 7/6, 5/6

Our mortgage rating methodology

At Motley Fool Money, mortgages are rated on a scale of one to five stars, with five stars meaning "best." We primarily focus on rates and fees, customer service, and loan versatility. This includes factors like application process, customer service channels available, and a variety of loan products.

See our full methodology here: Ratings Methodology

Full Better mortgage review

Better (NMLS #330511) 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 closes faster than the industry average. Better's digital experience helps the lender provide fast service and low rates.

Pros

  • Low price guarantee
  • Fast pre-approval
  • Closing costs discounts
  • All digital

Cons

  • Still growing menu
  • No customizable terms
  • No in-person service

Better mortgage rates

Better's rates trend about the same as the national average. To get the lowest mortgage interest rate, you'll need to pay for discount points (that's normal for mortgage lenders).

Mortgage discount points are prepaid interest that you can pay upfront to lower the interest rate for the life of the loan. One point typically costs 1% of your loan amount and buys your rate down by about one-eighth to one-quarter of a percent. When you compare rates, be sure to look at each lender's fees.

Better refinance rates

Better's refinance rates trend lower than the national average.

Better refinance rates tend to at least match the competition, and run somewhat lower than the national average. However, Better could save you even more money on the fees.

Better fees

Better is one of the most competitive lenders we've seen, considering it offers a faster loan process and fewer fees than many other lenders.

Better has no hidden fees, including no application fee and no hidden lender fees.

What types of mortgages does Better offer?

Better offers the most popular home loan options:

  • Conventional mortgage
  • Low down payment mortgage
  • FHA loan
  • Fixed-rate mortgage
  • Adjustable-rate mortgage
  • Jumbo loan
  • VA loan
  • Home equity line of credit (HELOC)
  • Home equity loan
  • Cash-out refinance

Better customer service

Better has many excellent customer service reviews online. Better has a rating of 4.3 out of 5 stars on Trustpilot and 3.69 out of 5 stars on the Better Business Bureau. Customers love the transparency and efficiency of its loan process and praise its knowledgeable and responsive advisors.

How to apply for a mortgage with Better

The first step in applying for a mortgage with Better is to fill out an online application for basic pre-approval. The next step is upgrading to Verified Pre-Approval, which you can do by linking your bank accounts and submitting income and tax documents. Better will provide qualified borrowers a Verified Pre-Approval Letter that contains an estimate of the amount they can likely borrow.

The next step is conditional approval, which is a binding agreement from Better approving you for a specific mortgage on a specific home. This step happens after you've made an offer.

Better says you can get basic pre-approval in as little as three minutes. This will give you an idea of your home-buying budget. Verified approvals can be delivered in 24 hours or less. Conditional approvals can also come through as quickly as 24 hours once all the pieces of the application are in place.

You may need the following types of documents to apply for a Better mortgage:

  • Income-related documents: These can include W2s, 1099 statements, pay stubs, and tax returns.
  • Debt-related documents: Debt documentation can include monthly statements for new accounts that haven't yet been reported on your credit profile, release documents for past detrimental events such as bankruptcy or foreclosure, and verification of property-related expenses.
  • Asset-related documents: These can include account statements, documentation for large or recurring transactions, and withdrawal terms if you are using money from a retirement account.

You will need to meet Better's minimum credit score and down payment requirements in addition to submitting necessary documentation.

About Better

Better Mortgage was founded In 2014, as a technology-driven solution to a sometimes bogged-down home-buying system. The goal was to create an automated financing system that could make it easier, faster, and more affordable to purchase a home. Better closed its first entirely online mortgage in 2015, and became a Fannie Mae approved seller and loan servicer the following year.

In 2022, Better became the first fintech company to fund $100 billion in completely digital home loans. In 2023, Better launched its One Day Mortgage, which lets customers get a mortgage Commitment Letter within 24 hours of submitting an application. In the past, commitment letters could take 30 days or longer.

FAQs

  • Better's rates trend lower than the national average. You will have to pay for mortgage discount points to get the lowest rate, but Better's price may be lower than other lenders.

  • Yes, if you are looking for one of the loan types that Better offers. Better's streamlined system allows it to hyper-focus on the products it offers, keeping costs and rates very low, and customer service quality very high. Better offers very competitive rates and fees when you compare its loans apples to apples against the competition.

    That said, Better can't meet the needs of all borrowers. If you need a construction loan or commercial loan, for example, you'll need to shop for a mortgage elsewhere.

  • Yes. Better's competitive rates and low fees make it a great choice to refinance your mortgage.