- Loan repayment terms from five to 30 years.
- Multiple loan options available.
- 14-day closing guarantee.
Best Online Mortgage Lenders for 2024
![online mortgage lenders](/personal-finance/static/2938e961fab002f7d76ce2cc49726e84/8ae18/online-mortgage-lenders.jpg)
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For the last two years borrowers have watched interest rates on mortgage loans steadily climb higher and higher from their previous all-time low. As we can no longer enjoy the under 3% rates of 2020, it’s important to shop around and find the best possible terms if you’re looking to buy or refinance a home.
Here’s a look at some of the best online mortgage lenders right now and how you can apply for a new loan from the comfort of your home.
Unternehmen | Best for | Types of purchase loans | Terms |
---|---|---|---|
Warp Speed Mortgage | Comparing interest rates for different mortgage types | Conventional, ARM, FHA, VA, Jumbo, and USDA | ARM; fixed rate 10, 20, 30 years; 1 year interest-only Bridge; up to 23 months Lot/Land |
Calque | Buying a new home with your current home’s equity | Conventional | Not disclosed |
Ally Mortgage | No lender fees | Conventional, ARM, and Jumbo | 15 to 30 years |
Rocket Mortgage | Below average credit score | Conventional, ARM, FHA, VA, and Jumbo | 20 to 30 years |
Better | One-day mortgage approval | Conventional, ARM, FHA, and Jumbo | Fixed rate 10, 20, and 30 years; ARM five years and six months, seven years and six months, and 10 years and six months |
Mr. Cooper | Mortgage rate discounts | Conventional, ARM, FHA, VA, and Jumbo | 15 to 30 years |
PNC Bank | Loan options | Conventional, ARM, FHA, VA, Jumbo, and USDA | 10 to 30 years |
LoanDepot | Instant online preapproval | Conventional, ARM, FHA, VA, and Jumbo | 10 to 30 years |
Why we recommend it: Warp Speed Mortgage offers conventional, ARM, FHA, USDA, VA, and jumbo loans with repayment terms ranging from five to 30 years in length. While not all products are available in all 50 states, eligible borrowers can rate-shop for an in-house home loan online and take advantage of WarpSpeed’s 14-day closing guarantee.
You’ll be hard-pressed to find much information on the company’s website. However, mortgage experts are available by phone to help answer your questions or start the home-purchase or refinance-loan process.
Why we recommend it: Rather than rushing to sell your current home at the same time as (or even before) buying a new home—or juggling two mortgage payments at once—a Trade-In Mortgage from a Calque partner lender can help you use your current property’s equity to buy a new home. You’re offered a purchase price guarantee and if your home doesn’t sell within 120 days of listing, Calque will buy it from you at the agreed price.
Until your old home sells, a home equity loan is used to fund the mortgage payments. Once your original home has sold, your new lender will keep 20% of your new home’s purchase price as the down payment. While Calque lenders specialize in this type of loan, you will need to look elsewhere if you want a conventional mortgage loan, FHA loan, VA loan, or USDA loan.
Why we recommend it: If you’re looking to save money on lender fees when buying a home, an Ally home mortgage loan could be the answer. Ally charges no application, origination, processing, or underwriting fees to borrowers, and you can be pre-approved for your new home loan in about three minutes online. Ally offers fixed-rate, ARM, and jumbo loans for up to $4 million, and even works with the FannieMae HomeReady Mortgage Program, which allows eligible borrowers to put down as little as 3% on their new home purchase.
Since Ally is an online bank, there are no branch locations to visit if you want help originating your new loan. You’ll also find that your loan options are limited to the three loan types mentioned above: Ally does not offer home equity products (including home equity loans or HELOCs) nor does this financial institution originate VA loans, FHA loans, or USDA home loans.
Why we recommend it: If you have a fair credit score or lower, you may find it difficult to obtain a competitive home mortgage loan through certain lenders. Rocket Mortgage, however, is the largest FHA lender in the country and offers loans to borrowers with credit scores of 580 or higher. It has an entirely online loan process and funds home purchase loans in all 50 states as well as DC.
Origination fees can be higher with Rocket Mortgage than some other lenders, and there are no in-person services available. If you’re looking to use the equity in your existing home, you’ll also need to shop around, as Rocket Mortgage doesn’t offer home equity loans or lines of credit.
Why we recommend it: Better is a direct online home mortgage lender offering home purchase loans with approval as fast as one day. The process is entirely online and allows borrowers to lock in rates and get a loan commitment letter fast. Better offers home purchase loans as well as refinance loans and HELOCs for existing homeowners, even on secondary and investment properties.
Better doesn’t offer any in-person loan services and not all types of home loans are available. While loan officers are not commission-based and fees are transparent, costs can be a bit higher in the end than with other lenders.
Why we recommend it: If you’re looking to lower your mortgage loan rates, Mr. Cooper not only has competitive rates but also offers a 1% mortgage rate buy-down in addition to other programs and promotions. You can get an online mortgage loan pre-approval in just minutes, and even rest easy with Mr. Cooper’s Close On-Time Guarantee. If your loan doesn’t close on time (and it’s the lender’s fault), Mr. Cooper will pay your first mortgage bill.
Detailed fee information can be difficult to find online, and total fees may be higher than average when all is said and done. While Mr. Cooper does offer online rate quotes and terms for potential borrowers, you will likely still need to call or email to get a personalized quote.
Why we recommend it: Whether you’re looking for a conventional fixed-rate home mortgage loan, a jumbo or adjustable-rate loan, or a government-backed product such as an FHA, VA, or USDA loan, PNC can help. These mortgage loans are available in all 50 states with an online or in-person process for most borrowers. The bank has high customer satisfaction and industry ratings through JD Power and Zillow.
Though PNC Bank offers many different home mortgage loans, you won’t be able to get a home equity loan or home renovation mortgage loan. Obtaining that loan can be limiting, too, depending on your location. Some borrowers won’t have access to in-person loan services while others may prefer an online process, but will quickly find that it isn’t entirely digital.
Why we recommend it: LoanDepot is a mortgage lender offering both an in-person and online mortgage experience for borrowers considering conventional, ARM, FHA, VA, or jumbo loans. LoanDepot also offers refinance and home equity loans, and the ability to get pre-approved online instantly.
While the online process is fast, you may still need to speak with an agent by phone, email, or in-person to finalize your loan quote. You’ll also find that online information regarding LoanDepot loan options can be limited, though there are more than 200 brick-and-mortar branches you can visit and a weekday customer service line if you have questions.
If you’re thinking about buying a new home—or even refinancing a home you already own—you’ll want to shop around a bit first to find the lender that suits you best. Here are some things to consider when trying to select the best online mortgage lender for you and your housing needs.
Depending on the lender it may take just a few minutes to get preapproved online, or the process could require a few days’ time. Many online mortgage lenders do offer a quick preapproval process, though, so you have a better idea of what you can afford and the sort of loan for which you’ll get approved in the end. This will help you begin shopping for the right property for your budget. What’s more, having a preapproval letter can make you a more enticing buyer in a competitive market.
Each lender will set its own mortgage loan requirements for borrowers, which may include factors such as a minimum credit score and maximum debt-to-income (DTI) ratio. If you don’t meet these requirements, you may be limited in the type of loan or loan amount for which you qualify. In some cases you may even be ineligible to take out a mortgage loan from that lender or will need to add a creditworthy cosigner to qualify.
When it comes to mortgage loans, there are conventional loans with fixed and variable rates, adjustable-rate mortgages (ARMs), jumbo loans, Veterans Affairs (VA) loans, Federal Housing Administration (FHA) loans, and U.S. Department of Agriculture (USDA) loans. The right loan for you depends on the property you’re buying, the purchase price, your personal and credit factors, your profession, how much you can afford to put down, where you’re buying a home, and whether it’s your first property purchase. While most online mortgage lenders offer conventional and ARM loans, you may need to shop around a bit if you’re looking for a government product such as an FHA, a VA, or a USDA loan.
Some online mortgage lenders offer very competitive interest rates. As they don’t have brick-and-mortar branch locations, they may have lower overhead costs that they can pass on to borrowers. Shopping for a mortgage loan online also makes it easier for you to compare rates and loan terms quickly, so you can find the best loan for you.
In some cases you may still get a better rate by applying through a traditional lender or a financial institution with which you have an existing relationship (such as your current bank or credit union). However, it’s always wise to shop around and compare rates from multiple lender options.
Online mortgage lenders are a relatively new concept. In fact, the very first entirely online mortgage lender experience came from Rocket Mortgage, which introduced its end-to-end online product in 2015. If you’re not yet familiar with these types of lenders, here’s what you need to know.
An online mortgage is a home mortgage loan issued through an online-based lender. These loans generally provide borrowers with an entirely online experience from start to finish: You can get preapproved (sometimes in just minutes), upload requested documents, track underwriting progress, sign documents, communicate with your loan officer, and review mortgage paperwork from wherever you have internet access. In most cases signatures can be obtained digitally, meaning you won’t even need to print out a single piece of paper through the loan closing.
With an online mortgage you are able to browse available loan products and terms online through a lender’s website or app. You can then apply for a new loan from your computer or mobile device, often getting preapproved in a short amount of time. Once you’ve selected the loan and terms that work best for you, you can begin shopping for your new home and let the lender know once you’ve had a purchase offer accepted.
With an online mortgage you’ll be able to complete the process digitally from start to finish. This includes your application, documentation, loan selection, and more. However, you may still need to sign your final loan documents with “wet ink,” meaning putting pen to paper with a notary. These days online lenders will often send a mobile notary to your home, though, so the process is as simple and pain free as possible.
There are benefits and downsides to working with an online mortgage lender.
Pros
Cons
Just be sure to plan ahead, shop carefully, and pick an experienced lender with the mortgage options and level of services that fit your needs and your comfort level. And don’t forget to check with your own bank or credit union, just in case an existing relationship can yield the best deal for you.
You can apply, qualify for, and fully originate a mortgage loan online in many cases. When working with many of the best mortgage lenders, most (if not all) of your documents can be submitted online and uploaded through a secure portal. You may need to sign your closing documents in person, in which case a mobile notary can often be sent to your location, though sometimes you can submit a digital signature online.
Online mortgage lenders can be just as safe as brick-and-mortar lenders, as long as you choose an experienced one with a history of secure mortgage originations. Submitting an application online can also be as safe as, or safer than, submitting a paper mortgage application, as your data is often encrypted or maintained behind a secure portal.
According to recent Home Mortgage Disclosure Act (HMDA) data (see page 65), Rocket Mortgage is the top mortgage lender in the United States, originating about 464,000 home mortgage loans in 2022. United Wholesale Mortgage (formerly United Shore Financial Services LLC) was next in line, with about 347,000 originated mortgages that same year.
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