Better Mortgage Review 2024
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- 50+ mortgage lenders reviewed and rated by our team of experts.
- 40+ years of combined experience covering mortgages and financial topics.
- Objective, comprehensive star rating system assessing 120+ categories and 5,000+ data points.
- Governed by NerdWallet's strict guidelines for editorial integrity.
Our Take
4.5
Online-only lender Better offers a wide range of mortgage types (minus construction and renovation loans), though borrowers who prioritize customer service may be turned off by the lender’s lack of chat support or a mobile app. Most likely to appeal to borrowers who want a one-stop shopping experience; Better offers connections with homeowners insurance providers and real estate agents, as well as title insurance.
Pros
- Borrowers can apply, lock in a rate and receive a commitment letter within one day.
- Offers both HELOCs and home equity loans with a high borrowing limit of 90% CLTV.
- Offers mortgages for manufactured homes, as well as financing for self-employed borrowers.
Cons
- No mobile app; customer service is by email or phone only.
- Borrower must provide contact information to see customized rates.
- Does not offer renovation or construction loans.
Lender | Min. credit score | Min. down payment | |
|---|---|---|---|
580 | 3% | Visit Lenderat New American Funding at New American Funding | |
620 | 3% | Visit Lenderat NBKC at NBKC | |
580 | 3.5% | Visit Lenderat Rocket Mortgage, LLC at Rocket Mortgage, LLC |
Full Review
Better Mortgage is a nonbank lender based in New York City. Loans are available in all 50 states and Washington, D.C.
🏠Popular loan types include: fixed or adjustable rate; conventional; FHA; VA; jumbo; rate and term or cash-out refinance
🔑 Specialty loan options include: loans for self-employed borrowers; mortgages for manufactured homes
đź’µ Home equity borrowing options: home equity loans; HELOCs
Better offers several services to streamline the homebuying process, including:
Better Real Estate, which matches borrowers with partner real estate agents and provides a $2,000 closing cost credit.
Better Cover, which shops and compares insurance offers.Â
Better Attorney Match, which connects borrowers with real estate attorneys in New York, New Jersey, Illinois and Massachusetts.Â
Better Settlement Services, which provides title insurance and settlement resources.Â
MORE NERDY PERSPECTIVE 🤓
 | Thoughts from a first-time home buyer When I bought my first home in December 2023, I knew I needed to assemble a team that could guide me through the process. While I personally chose to go with a mortgage broker, using a lender like Better — which offers agent partnerships, real estate attorney matching and insurance comparisons — could be helpful for a first-time buyer to keep your purchase moving smoothly. - Taylor Getler, Lead Writer, Mortgages |
» MORE: How to apply for a mortgage
How we score Better mortgages
Every year, NerdWallet writers and editors use the latest data and independent research to score lenders on an overall rubric, reflecting factors that are most important to mortgage borrowers. Select Why This Category Matters below to learn more.
Better has a NerdWallet home loans rating of 4.5 stars overall. Here’s a breakdown of this year’s score.
Category | Star rating |
|---|---|
Average mortgage rates and fees | |
Mortgage rate transparency | |
Variety of loan types | |
Customer experience |
- Why This Category Matters
Average mortgage rates and fees (30%)
Our team analyzes federal data to compare mortgage lenders’ origination fees and offered mortgage rates, measuring annual averages across all loan types, as reported by the lenders. The lowest combination of average rates and fees earns the highest star rating in this category. (It’s worth noting that loans considered higher risk, including those such as FHA loans that are easier to qualify for, often have higher interest rates and fees.) Pro tip: In some cases, paying upfront fees may lower a borrower’s mortgage interest rate.
Mortgage rate transparency (25%)
We check how straightforward it is to comparison-shop rates online. NerdWallet’s transparency ratings are higher for lenders that post sample rates on their sites, and highest for sites with self-serve tools that allow shoppers to see what rates might be like for their particular loan. Pro tip: Borrowers who compare customized rate quotes by applying to three or more lenders could save thousands of dollars over the life of their loan.
Variety of loan types (25%)
Finding the right mortgage is different for each borrower. The highest star ratings in this category are awarded to lenders that our research shows offer a wide range of loan types, improving the odds that a borrower will find the best match for their needs: options for purchase and refinance; fixed-rate and adjustable-rate loans; government-backed FHA, VA or USDA loans; renovation or construction loans; and home equity loans or HELOCs.
Customer experience (20%)
How easy is it to interact with this lender? The highest-rated lenders in this category offer features that are convenient and clarifying for borrowers, such as: an online application, multiple customer service options, a helpful mobile app and candid closing timeline communications.
Better earned bonus points for expanding homeownership opportunities by offering at least one loan product with a stated credit score minimum of 600 or lower, as well as loans for manufactured homes.
» MORE: How to get the best mortgage rate
What borrowers say about Better Mortgage
NerdWallet’s lender star ratings assess objective qualities, including rates, fees and loan offerings. To help you understand borrowers’ subjective experiences, NerdWallet has gathered customer satisfaction ratings from J.D. Power and Zillow. We also contacted Better customer support.
→ Below-average score in J.D. Power’s 2023 U.S. Mortgage Origination Satisfaction Study. Mortgage origination covers the initial application through closing day.
Score: 715 out of 1,000. Industry average for origination is 730.
→ Below-average customer rating on Zillow.
Customer rating: 4.39 out of 5, as of the date of publication. Rating reflects 870 customer reviews.
🤓 Our Nerds say…
When we called Better’s main customer service line, we were able to connect with an agent who answered our questions right away.
Alternatives to a home loan from Better Mortgage
We recommend comparing mortgage rate offers from three or more lenders.
Borrowers who prioritize online convenience may be interested in SoFi.
Those attracted to Better’s rate lock option can find a similar offering from Pennymac.
» MORE: Best mortgage lenders
More from NerdWallet
NerdWallet’s overall ratings for mortgage lenders are evaluated based on four major categories: variety of loan types (purchase, refinance, fixed and adjustable, for example), ease of application, rates and fees and rate transparency. Among the factors we consider when scoring these categories are options to apply for and track loans online, the level of detail about mortgage rates on lender websites and our analysis of the rates and fees lenders reported in the latest available Home Mortgage Disclosure Act data. These scores generate ratings from 1 star (poor) to 5 stars (excellent).
