Ratings Methodology for Home Loans

Our comprehensive rating system evaluates mortgage lenders across nine categories to help you find the best home loans overall.

40+ lenders reviewed

9 categories assessed

400+ data points analyzed

Methodology, broken down by category

NerdWallet's ratings for home loans overall are weighted averages of ratings in the following primary categories:

5.0

Overall score

We score lenders on their APR spread, which takes into account fees and rates, and measures the lender’s borrowing costs against benchmarks.

Customer experience (20%)

Lenders are evaluated on customer experience, including average time to close, ease of application, mobile accessibility and customer support options.

Product accessibility (20%)

Lenders score higher for making products accessible across the U.S. and to a range of financial profiles.

Rate transparency (15%)

We score lenders on whether sample (or customizable) mortgage rates are posted online.

Variety of home loans offered (15%)

We evaluate the variety of mortgage options a lender offers.

Data collection and review process

NerdWallet currently reviews more than 40 mortgage lenders, including the majority of the largest U.S. mortgage lenders by annual loan volume (measured among lenders with at least a 1% market share); lenders with significant online search volume; and those that specialize in serving various audiences across the country. Some of these lenders are NerdWallet partners, but this does not influence the review content.

We collect information from lenders and verify it through our independent research. We analyze Home Mortgage Disclosure Act (HMDA) data for APR spread, market share, product distribution, and loan type information, and we reference internal performance data when available.

Then, we rate the lenders on a scale of 1 to 5 stars based on their scores on the following criteria: rates and fees (APR spread), product accessibility, customer experience, rate transparency to consumers and variety of loan types. Each category constitutes a portion of the lender’s overall score. Lenders’ raw scores may be penalized in cases of recent regulatory action for violations that harmed mortgage consumers. These scores generate ratings from 1 star (poor) to 5 stars (excellent). Lenders score higher for having lower rates and fees, making products accessible across the U.S. and to a range of financial profiles, offering comprehensive customer support from application to close, allowing consumers to easily compare mortgage rates online, and offering a wider variety of loan products.

Data accuracy

NerdWallet maintains contact with lenders throughout the year, collecting information on a recurring basis. Lender offerings and details are updated as needed.

The review team

NerdWallet’s review team consists of writers and editors who cover all aspects of the homeownership journey — from deciding to buy a home to shopping for one; finding the right mortgage and mortgage lender; owning a home; selling a home and more. Aside from NerdWallet, the review team’s work has been published by outlets including MarketWatch, MSN Money, Newsweek, USA Today, The Washington Post, and The Associated Press. Each writer and editor adheres to NerdWallet’s stringent editorial integrity guidelines.