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Better 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. This Better review will highlight the pros and cons and help you figure out if the lender is right for you.
Best for: Refinancing and seamless online experience
Bottom Line
Better has the right combination of features and perks, including no unnecessary fees, low mortgage rates, and a fast, 100% online application process. Better Mortgage does not charge lender fees such as those for origination, application, processing, and underwriting. As a result, Better states that home buyers save $8,200 and customers who refinance save $8,200 over the life of their loans. In addition, Better states that applicants can get a personalized rate and a pre-approval in minutes. This can help buyers cut their costs while saving time. The lender also offers $150 off closing costs when applying through The Ascent site.
Min. Credit Score 580 FHA 620 Conventional 680 Jumbo
Min. Down Payment
Key Features
Loan Types
Fixed Rate Terms
Adjustable Rate Terms
It's important to compare mortgage lenders so you understand all your options. Here are a few of our favorite lenders, listed side by side so you can see how they each stack up against their competition:
This mortgage lender is a good fit for: Homeowners who want to refinance to a lower interest rate while cutting costs. Better is also great for borrowers who want to save on fees.
Better already consistently beats many mortgage lenders' rates, but its price guarantee ensures the lender will beat competitors. Better will match a competitor's offer and attempt to beat it by $100. If the lender can't, the $100 is yours to keep.
Apply through The Ascent site and receive a $150 discount for closing costs or closing costs for refinancing. This exclusive perk can help you keep more money in your pocket and reduce the cost of already low fees that the lender offers.
Better's One Day Mortgage program allows qualified borrowers to apply, get pre-approved, lock their rate, and get a loan commitment letter within 24 hours. The letter is a "conditional underwriting determination." It's not final approval of your loan, but it means Better expects to approve your loan.
Many mortgage lenders charge for the privilege of getting a loan. Better charges no unnecessary fees, helping you save on your overall closing costs, which can range anywhere from 0.5% to as high as 2% depending on the lender.
Better 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 up to a few days to issue a pre-approval letter.
When you make an offer on a house, you can make your bid more competitive because sellers will see that you're fully underwritten. In other words, Better's pre-approval letter can help you stand out, since it shows you're more financially ready to make such a large purchase.
Applicants can lock in their interest rate whenever they want during the loan process, and at any time of day or night. Better 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.
It's clear why Better is one of our top-rated online mortgage lenders: Most of the closing process is done completely online (with the exception of signing the final documents). Simply fill out the online application form and submit any necessary documents using the lender's secure system.
Also, Better's technology allows you to get a rate quote in seconds, and a pre-approval in minutes.
Once you complete the pre-approval process, you'll be assigned a Home Advisor and will receive their contact details. You can contact this person during office hours throughout your loan application process. If you need help outside of office hours, live support is available by phone, email, and chat most days of the year.
Better mortgage loan officers don't earn commission, so they aren't incentivized to steer you to a loan bigger than what you need.
Borrowers can receive up to $2,000 in lender credits through the Better Real Estate discount program. You'll need to choose Better Mortgage Corporation as your mortgage lender and a real estate agent who was referred to you by Better.
The Better Home Card is an unsecured, fixed-rate personal line of credit up to $50,000. You can access the funds during the first year you have the card, and then you'll start the three- to five-year repayment period. The line of credit takes the form of a Mastercard, but you can also access your funds via cash or checks.
Interestingly, applying for a Better Home Card won't affect your credit. The issuer will run a soft credit check to process your application.
Better now partners with real estate attorneys and title insurance and home inspection providers, and has a tool that helps you compare and buy insurance policies. These services are additions to the real estate buying and selling services Better already offered.
Better doesn't yet offer a comprehensive menu of mortgage loan products that covers all borrowers and all scenarios. You won't find a USDA loan. Better also does not offer specialty loans, such as construction loans or bank statement loans.
Better does better online. If your comfort zone is in a local branch office, you’ll need to find your mortgage someplace other than Better.
Qualifying for a Better loan depends on your financial situation. 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.
Better offers loans with allowable debt-to-income ratios as high as 50%.
For a conventional loan or FHA loan from Better, you need a FICO® Score of at least 620, but you'll need to have a higher score if you want the best interest rate. And you'll need a 3% down payment (3.5% for FHA loans).
If you want a jumbo loan, you'll need a 680 credit score and the down payment depends on the amount you borrow. Your DTI should not exceed 45%.
Besides a qualifying DTI, credit score, and down payment, you need to have cash reserves. This is a requirement for virtually any mortgage. It can be satisfied with money in savings or some other asset that could be converted to cash. For example, if you have a 401(k), the lender will usually allow about 70% of the balance to be considered cash to meet the reserve requirement. At Better, you need three months of cash reserves to qualify for a conventional loan. If you want a jumbo loan, you should have at least six to 24 months' worth of expenses set aside. The exact number depends on your loan amount.
Better makes home loans in amounts between $50,000 and $4,000,000.
Better refinance rates tend to at least match the competition. They trend about the same as the national average. Where Better will save you money is in the fees.
Better's rates trend a little lower than the national average. The lowest mortgage interest rate incurs a fee in the form of mortgage discount points (that's normal for mortgage lenders). Points are prepaid interest that you can pay upfront to lower the interest rate for the life of the loan. One point costs 1% of your loan amount and buys your rate down by 0.125% to 0.25%. When you compare rates, be sure to look at the details of lenders' price tags.
Better is one of the most competitive lenders we've seen, considering it offers a faster loan process and fewer fees than most.
It could be a good fit if:
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 is lower than other lenders.
Yes. 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 has very competitive rates and fees when you compare its loans apples to apples against the competition.
Yes. Better's rates and fees make it a great choice to refinance your mortgage.
You'll need a credit score of 620 and a down payment of at least 3% of your purchase price. If you need a jumbo loan, the minimum credit score is 680 and the down payment depends on your loan amount.
Your debt-to-income ratio (DTI) should be no higher than 50%. Keep in mind that it might be hard to qualify if you have a lower credit score, a small down payment, and a high DTI. You'll be on better footing if you can make a stronger showing on at least two of those criteria.
Better offers the most popular home loan options:
Our Mortgages Experts
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