Better Mortgage
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Better Mortgage

 4.2/5 (324 ratings)
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Better Mortgage
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Written by Jennifer Schurman
Edited by Cassidy McCants

About Better Mortgage

Better Mortgage (NMLS #330511) offers an online mortgage lending program in all states except Nevada. Borrowers can get preapproval from the company in as little as three minutes. The lender doesn’t charge lender fees or incentivize its officers with commissions, and it has a referral discount program for its customers.

Overall Satisfaction Rating

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Pros

  • No lender fees or commissions
  • 100% online application
  • Matches competitor offers
  • On-time closing guarantee

Cons

  • No VA or USDA loans
  • No construction loans

Bottom Line

Better specializes in a digital mortgage application process with no lender fees or commissions. You can see a personalized quote for a conventional or FHA loan in seconds and get preapproved in just a few minutes. There is a 620 minimum credit score requirement.

Top Better Mortgage Reviews

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Rated with 5 stars
Verified

Better Mortgage came out on top with the rates which we could afford as well as discounts. They didn’t have any kind of origination fees. … The entire process was very smooth. The...

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Rated with 5 stars
Verified

The lending process at Better Mortgage was very well-organized and really perfect for my needs. The agent was very supportive. Whenever I had questions, she got back to me quickly...

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Rates

Better Mortgage publishes its starting mortgage rates for 15-year, 20-year and 30-year conventional loans on its website. For rates based on your individual situation, contact Better Mortgage for a customized quote.

Over the past few years, Better Mortgage’s rates for home purchases have trended slightly lower than the national average. Its average rate was 0.26% lower than the U.S. average in 2021; in 2020 it was 0.21% lower, and in 2019 it was 0.26% lower.

Disclosures from Better Mortgage indicate that its average rate for a 30-year fixed-rate mortgage in 2021 was 2.86%, which was 0.1% lower than the national average reported by Freddie Mac (2.96%). Remember to keep in mind the difference between interest rate and APR — APR takes into account additional costs and fees as well as the interest rate.

Better Mortgage average home purchase rate vs. national average

YearDifference from national average
2021-0.26%
2020-0.21%
2019-0.26%
Information pulled from public Home Mortgage Disclosure Act data. Rates reflect noncommercial home purchase loans only.

Better Mortgage offers both fixed-rate and adjustable-rate mortgages. Adjustable-rate mortgages are gaining in popularity in 2022 because of higher overall mortgage rates. When rates are higher, ARMs become more attractive because they start with a lower rate. When rates are low (as in 2021 and 2020), many borrowers tend to opt for fixed-rate mortgages so they can lock in a low rate for the life of the loan.

Application process

You can complete Better Mortgage’s application 100% online. You can start the preapproval process by answering a few short questions and allowing the lender to conduct a soft credit check (which won’t impact your credit score).

Be prepared to provide information about your income and assets — Better Mortgage uses these details to determine how much you can borrow. You also need to upload financial documentation (like W-2s and bank statements).

Once the lender has all the necessary documents, you could receive a preapproval letter in as few as three minutes. Better Mortgage uses online tools to match you with available mortgage loan options.

Better Mortgage initially services the loans it originates, but it may sell your loan to an investor in the secondary mortgage market at some point — which means another company would own and service your loan moving forward. The loan terms, like interest rate and term length, won’t change with the new servicer.

Better Mortgage application features table

FeaturesAvailability
Online application
Mobile document upload
Physical branchesX
Publishes minimum rate on website
Rate lock30 to 75 days
Pre-qualification (no hard credit pull)
Certified approval letter

Loan types

Better Mortgage offers a variety of mortgage products online, including conventional loans, jumbo loans and FHA loans. You can also refinance your existing home loan with Better Mortgage, whether you’re aiming to cash out or get a lower interest rate.

Demand for home purchase loans from Better Mortgage grew significantly in 2021, with 52,363 total home purchase loan applications (versus 15,667 in 2020 and 8,803 in 2019). Of those, 21,967 (about 42%) were approved and closed in 2021, and only 3,441 (6.6%) applications were denied.

Loan applications for home purchases only by year

202120202019
Home purchase applications52,36315,6678,803
Home purchase loans closed21,9676,4743,771
Home purchase applications denied3,4412,689917
Home purchase preapprovals denied000
Information pulled from public Home Mortgage Disclosure Act data. Includes conventional, USDA, VA and FHA mortgages.

Refinancing

Most home loans Better Mortgage financed in 2021 were refinances (66.78%) and cash-out refinances (15.13%), while less than 20% were purchase loans (17.59%). Because rates were so low in 2020 and 2021, this wasn’t uncommon in the industry — many borrowers took advantage of the low rates and took on new terms for their mortgage loans over the past couple of years.

Home purchase vs. refinance loans by year

202120202019
Home purchase loans17.59%11.42%33.19%
Refinance loans66.78%88.29%66.58%
Cash-out refinance15.13%0.08%0%
Information pulled from public Home Mortgage Disclosure Act Data. Includes conventional, USDA, VA and FHA mortgages.

Requirements

Both conventional and government-backed loans have their own sets of borrower requirements. Typically, conventional loans require a higher credit score than government-backed mortgages, but not always.

Better Mortgage has a slightly higher credit score requirement for FHA loans than some other lenders. The company requires a minimum credit score of 620; others may accept scores of 580 or less. However, Better Mortgage sets a minimum score of 620 for conventional loans, which is in line with the industry norm.

National mortgage requirements by type

Min. credit scoreMin. down paymentCompare with other lenders
ConventionalTypically 620Typically 3%Mortgage lenders
FHA5003.5% with 580 credit scoreFHA lenders

Better Mortgage currently doesn’t offer VA loans or USDA loans. For more information on these types of loans, read our guide on USDA-approved lenders and VA loan lenders.

Cost and fees

Better Mortgage doesn’t charge any lender fees — there is no application fee, origination fee, processing fee or underwriting fee. Keep in mind you may still owe certain upfront costs when buying a home or refinancing a home loan, such as a down payment, third-party fees (e.g., appraisal fee, title insurance) or an escrow deposit for insurance and taxes.

Better Mortgage also offers a “Better Price Guarantee,” promising to match a competitor’s offer and credit $100 toward closing costs. You could also save an additional $2,000 in closing costs when you use both Better Mortgage and a Better Real Estate agent to buy your home.

FAQ

How does Better Mortgage work?

The initial application process takes place online. You start by selecting a goal (buy, refinance or sell), and you can obtain preapproval for a loan in as few as three minutes. This shows you the total amount you can borrow and what your monthly payments will be. In the case of a refinance, you can also see how much the new loan can save you.

Is Better Mortgage legit?

Better Mortgage is a reputable lender. If you have solid borrower qualifications and want to streamline the mortgage application process, you’ll likely benefit from Better’s online loan-matching and approval system.

While it can’t offer closing services online, Better backs up its digital experience with personalized customer support to guide you through the process. It doesn’t charge lender fees, and its loan officers don’t depend on commissions — so they have less incentive to oversell you.

Where is Better Mortgage available?

Better Mortgage loans are available in 49 states and Washington, D.C. The company currently isn’t available in Nevada. It's headquartered in New York, with three additional office locations in the U.S., but there aren't any in-person branch locations as of publishing.

Better Mortgage Reviews

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How do I know I can trust these reviews about Better Mortgage?
How do I know I can trust these reviews about Better Mortgage?
  • 4,114,109 reviews on ConsumerAffairs are verified.
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  • We use intelligent software that helps us maintain the integrity of reviews.
  • Our moderators read all reviews to verify quality and helpfulness.

For more information about reviews on ConsumerAffairs.com please visit our FAQ.

Page 1 Reviews 0 - 5
Rated with 5 stars
Verified Reviewer Verified Buyer
Original review: Sept. 13, 2022

I have recommended Better Mortgage to every single one of our nine children. It is awesome. I was assigned to a loan team, and then they let me know the team members’ names. When you call Better, your name comes up on the computer screen and the person who will answer the phone will try and address an issue. If they are not able to address the issue, they ask you to hold, then they reach out to the team leaders. If Tony is unable to take the call, then Colton will answer. If Colton’s unable to answer, the other guy will answer. If they are not able to answer, within 10 minutes, I have a callback and they have addressed the issue. It's impressive. We've done loans through Wells Fargo. We've done them through a little place out of campus. We've done loans through all kinds of places. We'll stick with Better.

The whole process took 23 days at the time. They'll have taskbars that come up. There were 45ish tasks there. As you go through and you're filling out all these different little items and gathering all your financial information, they're just confirming it online. Occasionally, the task will hang there for two to three days but because I have dealt with Wells Fargo, I'm like, “Hey, take all the time you want.” I do recognize that as a consumer, those tasks are sitting there because it's hard to find people to hire who can pass the background checks that the federal government requires to deal with my information. So, I'm okay with the tasks being there. It would be good if there was a way for them to be able to say, “Hey, this is a dedicated team, and even with our underwriters, here are your underwriters that are dedicated to your case, and they will respond within two days.”

If they just would inform the consumer that it may take three days for an answer on something, then that would eliminate a lot of people's anxiety for sure. Other than that, I'm always very satisfied with Better. They’re very honest. It's kind of interesting when you deal with them. When you put in the first initial application and you're approved, they suddenly draw up a list of, “Hey, here you go. Here are five to seven different lenders that it says will take your loan. Here’s what this one will do. Here's what your final closing costs are. Here’s what your interest rate is.” It's very straightforward.

Better Mortgage response

Hi Afton - thank you so much for your review! Your feedback on this experience helps us recognize the areas we excel and where we stand to improve our processes. Your insight here is extremely valuable. We would love the opportunity to work with you and your loved ones again in the future!

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    Rated with 4 stars
    Verified Reviewer Verified Buyer
    Original review: July 20, 2022

    Better's process was fairly seamless. Most of it was online base, which I appreciate because, that way, you get an email saying that you need to upload a document instead of constantly getting separate emails and separate phone calls from a loan officer. I felt that the user interface of it from the online portion of it was a much more preferable way to deal with it. Also, I'm getting a call from somebody at Better, but I'm not getting multiple calls from multiple service providers. I was in a situation where I was having to refinance unexpectedly because of some stuff going on on my end, but as far as what the terms that I got were relative to what was available at the market at the time, I was pleased.

    The online application went well for me. I had my documents in PDF form and if I occasionally had to scan something to get it into a PDF, that was not a problem. When it starts going through underwriting and I sometimes get multiple emails in a day going, "You have a new task. You have a new task. You have a new task," it is what it is. It's just better that it's online rather than somebody constantly calling you. My rep, Cody, was great. Whenever I needed anything, he always responded very quickly. He did do a very good job of telling me, "Okay, here's where you are now. Here's what's coming next. You're gonna get this. You're gonna get that." He was very good at prepping me for what was next in the process.

    The only thing is my cash to close changed about three times in the last couple of days. They're constantly getting new information. It flowed pretty well. My biggest complaint about the process was that while I did not get solicitations from other non-Better entities when I first reached out to the company, after I closed, I got inundated with mail asking me to purchase. I got multiple pieces of mail that said they weren't from Better, but they were given my name by Better. It was for things like insurance and other offers of ancillary products that, if I was interested in, I would have already gotten. I didn't really need 10 pieces of mail in my mailbox the week after I closed.

    Better Mortgage response

    Hi Jeffrey, thank you for your review. We are grateful to hear our online interface contributed to an overall seamless experience. Additionally, we will be sure to make Cody's management aware of your sentiments. Your feedback regarding the mailings you've received will be shared with our senior leadership for review. If there is anything else we can assist you with please do not hesitate to reach out! In the future, we would love to get the opportunity to work with you or your loved ones once again.

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    Rated with 4 stars
    Verified Reviewer Verified Buyer
    Original review: June 14, 2022

    At the beginning, it was good working with Better Mortgage. I did a refi with them a couple years ago for my old house, so I used them to buy a new house. It worked great for the most part but they had lost a lot of people so they started getting busy and it was hard to get ahold of someone. Then, whenever you call the main line, you couldn't get ahold of your loan advisor person. It was a little bit stressful for a while. Doing the refi again, I might not use them because it's easier to go to a local office and tell them to take care of it. I know way too much about mortgage stuff now, such as preparing documents because you have to do it all yourself. It tells you what to submit and if you don't mind doing it, it’s alright. But it's not like you can just go to the local office and tell them to take care of my documents for me and then it goes smoothly. It takes a lot more work on your end to do it.

    Whenever I spoke to someone, they were good. I used their online chat a lot and they usually get back so fast. The people were there 24 hours a day. Because of the employee squeeze they had though, the loan officers were running ragged, so sometimes, it was tough to tell them to email me and my agent and give us an update. It took a long time because if they had 20 mortgages closing this week, they don't care about mine that closes in three weeks. They're not even worried about it. But when it came down to the week of closing, because we were lining up six different transactions and one title company, three houses, purchases and sales, like a whole bunch of people buying and selling houses, in order to line them up on the same day, they were good.

    Better Mortgage did things faster than all the other mortgage companies. The loan advisor I had at the beginning, for some reason, left the company midway through and they had to shift, and then they lost a bunch of people. I was stressed out because of the random occurrences and I happened to leave right in the middle of my transaction. That's not anyone's fault.

    Better Mortgage could have done better, like honest appraisals and they shouldn't have gotten rid of so many people. The people I was talking to were swamped and it was an indication of their company probably releasing too many people. If they're super busy, you're not gonna get as many updates. When it's going well, they don't send out too many updates. Normally, you'll only hear if something goes wrong. So, some people are nervous about these big transactions. But there's nothing going on so they do not even email you. There's no reason to. Maybe they can implement a weekly update to make people relax a little bit.

    Better Mortgage response

    Hi Cory, thank you so much for your review. Your feedback on this experience is extremely valuable and will be shared with the team in order to take the proper next steps to improve our processes. We truly appreciate you pushing Better to be better. In the future, we would once again love the opportunity to help you or your loved ones meet your home financing goals!

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    Rated with 5 stars
    Verified Reviewer Verified Buyer
    Original review: April 29, 2022

    I kind of went through Better Mortgage's application process twice. I had an offer on a house and we got almost to the end. Then the buyers wouldn't put something in writing about replacing the roof. I had to walk away from that sale, but in that very first application, I was super impressed. It was super easy. Better's systems work so there wasn't a lot that I had to send in. I was expecting to have to send in a lot more documentation but their software did everything. I just had to verify a few things. It was super helpful. I like the task aspect of things. The notifications were good.

    I'm still in the market again for a house. Then I had to redo a few things. This time, there was an extra. I had to take some kind of a course for home buying. So, that was a little bit different. I felt like that was a little bit weird because I had just gone through the process a couple of months before. But overall, I was very impressed by the application process and the ease of it.

    I worked with a couple of different sets of representatives. I had one set of people that I was working with through all the stuff in November. Then I started to work with some of them the second time around, but it felt like there were a lot more hands touching it the second time around right before I bought this house. Better was also going through some restructuring during that timeframe from what I could read in the media. It was a little bit weird on that end because then once I was done with all my loan documents and everything was set, I felt like there wasn't a good transition to my closing agents with Better. Because everything had been all documented and through email and very formal and suddenly, I started getting phone calls. I felt like the guy didn't introduce himself well. It even lists what your preferences are, and I felt like he wasn't abiding by that. I would get random phone calls from him.

    I had done all of my due diligence getting to closing and I felt like I didn't need anything. I don't understand why he was checking in on me so frequently. At the end, he was like, "It's my understanding that all the tasks are completed. There's nothing else for me-- unless you need something from me.” “I'm not sure why you're calling me so frequently. Like is everything okay? Do you need something else?” “Oh, no, I was just calling to see if you needed anything from us.” We were off by 10 cents. It was a very weird set of circumstances because I called since we were off 10 cents. That's what I was told. I got an email from the title company that said, "It's off 10 cents." Better had not sent in the updated disclosure.

    I was the first signing of the day. I was upset that when I called and I asked for the person, they were like, "Oh, he's out today." At the same time, my Realtor called and they were like, "Oh, he's not at his desk, but he's available." I didn't appreciate that and it was like a lot of back and forth. We were on the phone with Better for almost an hour and a half between the two of us to get that squared away. I was like, “My loan is already prefunded. I provided everything. We're literally sitting here waiting for Better to get this just squared away.” That was a super weird way to end the transaction because everything has been so flawless and seamless, and they had great communication but when it came to closing at that transition point, it was very awkward. I would still recommend Better. That last piece was just super weird. It did not match up at all to the level of customer service that I'd gotten all the way throughout in both transactions.

    Better Mortgage response

    Thank you so much for leaving your detailed feedback here Julissa. This is extremely valuable information that we can bring back to our teams for improvement. We are sorry to hear about the communication troubles with your advisor later in the process. That said, we are so glad you were able to meet your financial goals at the end of the day. We would love the opportunity to show you a better experience so please do not hesitate to reach back out in the future. We hope you have a wonderful year ahead!

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    Rated with 4 stars
    Verified Reviewer Verified Buyer
    Original review: March 5, 2022

    Better Mortgage was willing to meet and beat all the competition. Our originator, Jason, was really amazing. He was a great advocate for us. However, the review and application process was very tough. They've really scrutinized everything in my husband's and my background, even though we have perfect credit, perfect income, and perfect job history. We have played by all the rules throughout all of our lives. Yet, they put us through so much scrutiny. I thought we were going to be denied a loan. I was really stressed, but it went through and everything was okay. It ended up being really good. So, it was a good experience. The only thing is I'm still waiting to find out who our mortgage servicer is, and our payment is due April 1st and today's March 17th.

    There were things like they told me that I was a claims processor for 22.50 for this company and that they needed the W2. I kept saying to them, “That's not me. And I don't care if it came up in my background search, that is not me. Here's my employer. I obviously can't work two places full-time.” My HR director was going to get involved to say, “She's here 40 hours a week.” I had to convince them over and over and I wrote a letter, too. That was one pain point. They were asking me for things. I was saying, “I don't have this. I can't give you that.” I kept telling them we had an escrow account. I would send them all of the information from the escrow account, and they would reject it and say it was insufficient even though it was coming directly from my PennyMac portal.

    Everything was coming from my PennyMac portal. They were saying, “This is insufficient. We can’t accept it. We need a different escrow. We need different evidence.” I was like, “There's no other evidence. This is it.” Then they wouldn't build us an escrow account. They did everything outside. They did the taxes and the homeowners insurance outside of the loan. I was like, “Wait a minute, wait a minute, wait a minute. I told you this was going to be rolled into an escrow account.” “Well, you need to show us you have an escrow account now.” I kept showing them. So, getting them to accept the documents was another difficult thing. I explained to them my husband was a consultant with Cigna. Then Cigna bought his contract and hired him fulltime, which was why there were two different W2s. I had to keep saying it's the same company, same job, same everything. They were asking for the same information over and over despite my explanations.

    Better Mortgage response

    Hi Jill, thank you very much for leaving such a detailed review. Here at Better we aim to provide each of our clients with a seamless experience and I am sorry to hear about all of the back and forth you went through in order to verify your income and solidify your escrow account. I will bring your feedback to my leadership team so we can use the processing of your loan as a coaching moment for our team members. All in all, we are so glad we could help you meet your financial goals and would love to work with you again in the future. Please reach out if there is anything we can help you with down the road!

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    Rated with 5 stars
    Verified Reviewer Verified Buyer
    Original review: Nov. 18, 2022

    Better Mortgage had a scheme where you can buy the house for you and it’s like paying cash up front. Later on, their application process was also straightforward and the communication was clear. Moreover, the rates that they were giving me at that time was good. So there was transparency toward the process. People should go for it.

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    Rated with 5 stars
    Verified Reviewer Verified Buyer
    Original review: Nov. 5, 2022

    The initial setup with Better Mortgage was very easy. The only hiccup was there were some questions, because I had a large sum of money that entered my bank account in the window of their examination, and it's because I had sold my home in Texas. So, for some reason, we couldn't get on the same page of what kind of documentation they needed to be okay with that in underwriting. I kept getting these cryptic messages inside the webpage like they need something and I would send them what I thought they were asking for, and then they would repeat the same message.

    There was a human being who was calling me and helping me along. I eventually emailed him and asked him to talk to underwriting and get back to me in a full formed human generated sentence with what they need. And he sorted that out. He called underwriting and got back to me and told me why they were rejecting what I have sent so far and that they needed to see this specific page. Other than that, everything else was super seamless. The way Better Mortgage could auto import your W-2 off the web and bank statements was awesome because I had to upload very few documents. It could pull almost everything automatically from banking websites and that was so cool.

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    Rated with 5 stars
    Verified Reviewer Verified Buyer
    Original review: Nov. 4, 2022

    I never had any hard situation with Better Mortgage and I'm very happy with the process with my house. It was very easy. I recommend this company for those who are looking for mortgage.

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    Rated with 4 stars
    Verified Reviewer Verified Buyer
    Original review: Nov. 3, 2022

    I got a standard loan from Better Mortgage and I was able to buy my house. The process was all online and the loan was approved in under one month. The current system is good and the reps are mostly available.

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    Rated with 4 stars
    Verified Reviewer Verified Buyer
    Original review: Oct. 21, 2022

    Better Mortgage is a good company. The employees are working very hard and are also very professional to answer all kinds of questions. My representative is very patient. It's always very easy to find her. I can chat with her because there's a lot of questions. The follow-up emails are very quick. However, after the loan has been done and the escrow amount was transferred to my mortgage payment, the escrow amount was not correct. There are some communication issues with the title company.

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    ConsumerAffairs writers primarily rely on government data, industry experts and original research from other reputable publications to inform their work. To learn more about the content on our site, visit our FAQ page. Specific sources for this article include:
    1. OriginationData, “Better Mortgage.” Accessed July 21, 2022.
    2. HMDA Dataset Filtering, “HMDA Dataset Filtering.” Accessed July 15, 2022.

    Better Mortgage Company Information

    Company Name:
    Better Mortgage
    Website:
    better.com