Top Mortgage Lenders to Watch in January 2025: Find Your Best Deal!

In today’s digital-first world, every mortgage lender you’ve heard of is online. Most make it easy for you to kick off your home loan application right from your couch. But only a select few have truly harnessed the power of technology to build their mortgage lending business from the ground up, claiming their stake as pioneering online lenders.

We’ve taken the time to sift through over 40 prominent mortgage lenders and handpicked the top contenders in the online lending arena.

Your go-to choice: Better has boldly declared itself a “100% online” mortgage lender, ranking as our top pick thanks to its unbeatable low interest rates and total loan costs that outshine competitors.

Star Rating: 4.00

Check out our full review of Better Mortgage

Top Perks

• Better provides a wide range of conventional and government loans for purchasing and refinancing your dream home.

• Need access to your home’s cash value? They’ve got you covered with a home equity line of credit and cash-out refinancing options.

• Our analysis of 2023 Home Mortgage Disclosure Act data shows that Better consistently offers interest rates and total loan costs well below the median—talk about a winning combination!

• With their “One Day Mortgage,” simply submit your financial details and receive a loan commitment within just 24 hours.

Important Insights

• Keep in mind that the mortgage rates we checked were lowered by more than two discount points, so compare carefully before jumping in.

• For quicker responses, some inquiries may be handled by “Betsy,” an AI voice assistant designed to help you out.

Discover more: Understanding mortgage discount points: Should you pay for them?

Your go-to choice: Back in 2015, Rate (formerly Guaranteed Rate) made waves by launching the “world’s first digital mortgage.” Today, they continue to expand their loan options with non-qualified mortgages.

Star Rating: 3.80

Check out our full review of Rate (Guaranteed Rate)

Top Perks

• Offering non-qualified mortgages, Rate allows borrowers to utilize alternative credit data like bank statements, catering to those interested in interest-only payment options.

• Compete effectively with cash buyers using Rate’s PowerBid Approval, which accelerates the preapproval process and gives you a 90-day house-hunting window.

• Rate earns high marks for affordability, considering loan options and down payment assistance availability.

Important Insights

• Be aware that sample mortgage rates come with specific credit stipulations, so don’t fall in love with a rate until it’s locked in.

• In 2023, Rate showcased lower-than-average interest rates but had loan costs nearing $6,500, which is close to the industry average.

Read more: Non-qualified mortgages: How a non-QM loan can help you purchase your home

loanDepot

Your go-to choice: loanDepot is all about building solid relationships with customers, even offering cash incentives for using their partnered real estate agents.

Star Rating: 3.40

Check out our full review of loanDepot

Top Perks

• Their “mellohome” initiative offers cash bonuses when you buy or sell your home with a loanDepot-affiliated agent.

• They guarantee timely loan closings—or they’ll pay both the buyer and seller $1,000!

• Additional benefits include discounts on security systems, moving services, and smart home tech.

Important Insights

• You won’t find sample mortgage rates on loanDepot’s website. Reach out directly or fill out a contact form to get a sense of what you might pay.

• Customer service ratings are below average according to recent studies, so be prepared for that.

Your go-to choice: Ally has established itself as a premier online bank with a century-long legacy, originally starting as the in-house lender for GM vehicles. Today, it’s a noteworthy mortgage provider to consider.

Star Rating: 3.40

Check out our full review of Ally Bank

Top Perks

• Ally is recognized for its transparency in rates, making it easier for you to find realistic mortgage rates.

• Our 2023 loan data analysis shows Ally consistently offers lower-than-average interest rates and loan costs.

• First-time home buyers will love Ally’s robust library of educational resources.

Important Insights

• Quick note: The Ally preapproval process is managed by Better Mortgage, but Ally is your direct lender.

• Ally does not provide government loans, including FHA, VA, or USDA options.

Explore further: Conventional vs. FHA loans for home buyers

Your go-to choice: Rocket Mortgage has revolutionized online home loans for the masses. Today, it continues to break new ground with innovative mortgage offerings like its very-low-down-payment conventional loan.

Star Rating: 3.06

Check out our full review of Rocket Mortgage

Top Perks

• Their One+ mortgage program allows for a down payment as low as 1%, thanks to a grant. Income and maximum benefit limits do apply.

• A mortgage buydown program can temporarily lower your interest rate for the first two years of the loan.

• First-time home buyers can also access closing cost assistance in 21 US cities.

Important Insights

• Despite a decline in its customer satisfaction score, Rocket Mortgage still ranks above average.

• A recent lawsuit against a sister company has sparked some controversy, but Rocket Homes denies any wrongdoing and plans to contest the lawsuit.

Dig deeper: How to lower your mortgage interest rate

We’ve thoughtfully curated a list of mortgage lenders for our best-of selection, but some didn’t quite make the cut. Remember, many of these lenders offer online services, so you can complete the majority of the application process digitally if you go that route.

Obtaining a home loan online mirrors the traditional process—you’ll still face a mountain of paperwork. But instead of handing it over in person, you’ll upload your documents online. If you’re tech-savvy, this could speed up the process, yet getting final approval still involves a few weeks of waiting for underwriting to wrap up.

Learn more: Understanding the mortgage underwriting process

Shopping for online lenders is akin to hunting for any significant investment:

• Get preapproval offers from various lenders to pinpoint the best match for your needs.

• Compare interest rates and loan costs side by side through detailed loan estimates.

• Watch out for hidden “junk fees” like origination and application charges that can sneak into your loan.

• Pay close attention to the annual percentage rate (APR), which encompasses both the interest rate and any fees.

Dig deeper: Understanding APR vs. interest rate when shopping for a mortgage

With a plethora of options available for securing a home loan, online lenders stand out as a fantastic choice. Yet, don’t overlook the benefits of checking out brick-and-mortar institutions too. Banks, credit unions, mortgage companies, and brokers are all worth considering.

For instance, your everyday bank may offer enticing interest rate discounts or fee reductions for existing customers, while credit unions often deliver exceptional customer service.

Adding a little healthy competition can work wonders for your mortgage search.

Out of the 40+ national lenders we reviewed, Better Mortgage emerged as the top-rated online lender with a stellar 4 out of 5 stars. Better excelled across the board, with one caveat—rate transparency. They include more than two discount points in their advertised rates, which could make their rates seem lower than those of competitors who don’t embed those costs.

Among traditional banks, Chase, TD Bank, and Truist each scored 4 out of 5 stars as our top-rated choices. Not to be outdone, Navy Federal Credit Union snagged our highest score of 4.20 stars as the best credit union.

According to 2023 HMDA data, Rocket Mortgage holds the title of the No. 1 mortgage lender in America.

When it comes to online mortgages, Better stands out as the best overall choice. However, we highly recommend that borrowers consider two or three lenders before finalizing their decision, as your best fit could be someone entirely different.

In our analysis, Better and loanDepot emerged as the online lenders with the lowest interest rates, consistently offering much lower than median mortgage rates in 2023.

Our Approach:

We evaluate mortgage lenders based on five crucial categories: 1) Interest Rates: Scoring based on 2023 Home Mortgage Disclosure Act data from around 10 million applications. 2) Affordability: Evaluating loan product availability, including government-backed loans, low down payments, and nontraditional credit consideration. 3) Loan Costs: Analyzing lenders against annual median totals. 4) Rate Transparency: Assessing whether rates are influenced by discount points and if rate assumptions are clearly disclosed. 5) Online Features: Reviewing the quality of educational resources, calculators, and tools available.

We also review Nationwide Multistate Licensing System (NMLS) data on regulatory actions that may impact a lender’s score.

Advertisers or sponsorships do not influence ratings.

Editorial Transparency for Mortgages:

The content in this article has not been authorized by any advertisers. All financial product details, including rates and fees, are accurate as of the publication date. All services are presented without guarantee. Always check with the lender’s website for the latest details. Not all offers are listed here.

Edited by: Your Editor’s Name.