Royal United Mortgage

Unlike some mortgage lenders, Royal United Mortgage doesn’t post its current mortgage rates online. You will need to contact the company and begin the application process to get a customized rate quote.

Comparatively, Royal United’s interest rates for home purchase loans have been slightly higher than the national average (a 0.33% difference in 2021). Keep in mind, though, that interest rates are affected by several personal factors, including a borrower’s credit history and debt-to-income (DTI) ratio. Borrowers with excellent credit (800 and above) and low DTI ratios are likely to be offered better interest rates than borrowers with lower credit scores and higher DTI ratios.

Royal United Mortgage offers both fixed-rate mortgages and adjustable-rate mortgages (ARMs). ARMs have an introductory rate for a set length of time — generally three to seven years, before the rate starts fluctuating based on market conditions. The lower introductory rates are very attractive to borrowers, but some people prefer the predictability of having the same interest rate over the entire loan term.

There are circumstances when an ARM can be beneficial — for example, if you can refinance your mortgage when rates drop or only plan to live in your current home for a few years and sell before the rate resets.

Royal United Mortgage average home purchase rate vs. national average

You begin the application process by completing a contact form found in the “Get Started” section of the company’s website. You'll need to provide a phone number and an email address for a loan advisor to reach you and schedule a time to discuss your financial goals.

When you talk with your loan advisor, be prepared to answer questions about your income and assets. They may also ask you to submit financial documentation, like W-2s and bank statements. In addition, the company pulls your credit report to help determine your eligibility.

Once your application is complete, you may receive an approval decision fairly quickly. The company doesn’t outsource its underwriting component, which means your loan could be processed in as little as two to three weeks.

Royal United Mortgage application features

Royal United Mortgage offers a variety of lending options, including conventional mortgages, home equity loans, cash-out refinances, HELOCs, FHA loans and VA loans. Although the company offers government-backed mortgages, it tends to specialize in originating conventional mortgage loans. Typical loan terms for conventional mortgages are 15 years or 30 years.

In 2021, there were 1,200 home purchase loan applications initiated with the company. Of those applications, about two-thirds were approved and originated. About 30% were denied.

Loan applications for home purchases only by year

Refinancing

In 2021, most of the loans Royal United Mortgage originated were for refinancing (about 93%). Only a small portion (about 7%) were for home purchases.

In 2020 and 2021, refinancing was an attractive option for borrowers because of historically low interest rates. Borrowers sought to save money in the long run by locking in a lower interest rate, even after the accompanying fees and closing costs.

Since that time, interest rates have risen. For reference, the average rate for a 30-year fixed mortgage was 2.87% in August of 2021. It has risen to as high as 5.81% in 2022 as of the date of publishing, according to the Federal Reserve Bank of St. Louis. Higher rates make refinancing far less attractive to borrowers.

Home purchase vs. refinance loans by year

HELOC and home equity loans

Royal United Mortgage offers both HELOC and home equity loan options. Before you apply for either, you’ll need to discuss your short-term and long-term goals with your loan advisor. Your loan advisor can then help you decide which may be a better fit for your situation.

A home equity loan may be best for a borrower who wants to fund a home renovation project with high upfront costs. On the other hand, a HELOC may be a better option for a homeowner who needs consistent access to cash over an extended period of time (like for emergencies or home repairs).

Although the company doesn’t disclose its borrower requirements for HELOCs or home equity loans, most lenders require at least 15% equity in your home to qualify. You may also need a minimum credit score of 620 and a DTI ratio of 43% or less.

Royal United Mortgage doesn’t specify its borrower requirements online. However, most lenders require at least a 620 credit score to qualify for a conventional loan. Credit score requirements are often lower on government-backed mortgages like FHA and VA loans.

In addition, the minimum down payment for most conventional mortgages is 3%. Borrowers with at least a 580 credit score may qualify for a 3.5% down payment on an FHA loan, while down payments are typically not required on VA loans.

National mortgage requirements by type

For other loan types, read our guides on USDA loans.

Royal United Mortgage doesn’t disclose the fees it charges on new loans. However, you can expect to pay closing costs between 2% and 5% of the loan amount. The closing costs generally include fees for the appraisal, lender fees (e.g., credit report fee, origination fee, discount points), title fees, insurance and property taxes.

Going over the estimate of all the fees and charges associated with a loan is essential before you enter into a contractual agreement. The lender should provide this estimate, along with a rate quote, after you receive preapproval.