Freedom Mortgage Review 2024

Good for: borrowers seeking an experienced lender for an FHA, VA or jumbo loan and preferring in-person service.
Phil Metzger
By
Last updated on January 16, 2024
Edited by
✅ Fact checked and reviewed
Mary Makarushka
Edited by
✅ Fact checked and reviewed

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Our Take

2.5

Home loans overall
NerdWallet rating
The Nerdy headline:

Freedom offers a range of home purchase and refi options, but no home equity loans, and mortgage rates aren't available on its website. The lender was penalized for providing illegal incentives for mortgage referrals.

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Freedom Mortgage
Freedom Mortgage: NMLS#2767

Min. credit score
620
Min. down payment
3%
Loan types and products
Purchase, Refinance, Jumbo, Fixed, Adjustable, FHA, VA, USDA

Pros

  • Offers conventional, FHA, VA, USDA and jumbo loans.
  • Multiple customer service options, including brick-and-mortar branches, online message center and phone.
  • Low average mortgage interest rates, according to the latest federal data.

Cons

  • No mortgage rates displayed online.
  • Fined $1.75 million for illegal kickbacks to real estate agents and brokers for loan referrals.
  • Origination fees are on the high side, according to the latest federal data.
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Full Review

What borrowers say about Freedom mortgages

NerdWallet’s lender star ratings assess objective qualities, including rates, fees and loan offerings. To assess borrowers’ subjective experiences with lenders, NerdWallet has gathered customer satisfaction ratings from J.D. Power and Zillow.

  • Freedom Mortgage received a score of 699 out of 1,000 in J.D. Power’s 2023 U.S. Mortgage Origination Satisfaction Study. The industry average for origination is 730. (Mortgage origination covers the initial application through closing day.)

  • Freedom received a score of 585 out of 1,000 in J.D. Power’s 2023 U.S. Mortgage Servicer Satisfaction Study. The industry average for servicing is 601. (A mortgage servicer handles loan payments.)

  • Freedom received a customer rating of 4.83 out of 5 on Zillow, as of the date of publication. The rating reflects more than 1,860 customer reviews.

Freedom Mortgage and consumer trust

The Consumer Financial Protection Bureau (CFPB) took action against Freedom in August 2023 for illegally incentivizing referrals from real estate brokers and agents, which the agency says undermined consumer choice. The lender was ordered to pay $1.75 million into the CFPB’s victim relief fund.

A lender’s NerdWallet star rating is negatively affected by recent regulatory actions for violations that harmed mortgage customers. When shopping for a mortgage lender, do an online search to see if the company is in the news, and why.

Freedom Mortgage's loan options

  • 3 of 5 stars

Freedom Mortgage offers conventional purchase and refinance loans (cash-out and rate-and-term options). It also provides government-backed FHA, VA and USDA options.

VA loans made up 34% of the lender’s volume in 2022, and FHA loans accounted for 21%.

Borrowers can choose from a variety of jumbo loans for properties such as vacation homes and investment options. There’s even an option for self-employed borrowers who don’t have a traditional method for proving income.

The lender does not offer construction-to-permanent or home-renovation loans, nor does it offer home equity loans or lines of credit.

What it’s like to apply for a Freedom mortgage

  • 3 of 5 stars

Though you'll get started with a loan officer, either by calling Freedom or filling out an online form, the lender says that once you've decided to move forward, you can complete all tasks online, including securing preapproval for a home loan.

Once you’ve started an application with Freedom Mortgage, you can also contact them by phone or email, or set up an appointment with your loan officer. The lender doesn't offer a live chat on its website to answer questions, but if you want to call, a phone number is easy to find in the “Contact Us” tab at the top of every page.

Freedom Mortgage's rates and fees

  • 3 of 5 stars

  • Freedom Mortgage earns 2 of 5 stars for average origination fee.

  • Freedom Mortgage earns 4 of 5 stars for average mortgage interest rates.

NerdWallet analyzes federal data to compare mortgage lenders’ origination fees and offered mortgage rates. We measure annual averages across all loan types, as reported by the lenders. Overall, Freedom Mortgage had higher origination fees than average, with mortgage rates that were lower than average in the industry.

Borrowers should consider the balance between lender fees and mortgage rates. While it's not always the case, paying upfront fees can lower your mortgage interest rate. Some lenders will charge higher upfront fees to lower their advertised interest rate and make it more attractive. Some lenders just charge higher upfront fees.

Freedom Mortgage's rate transparency

  • 1 of 5 stars

If you already have a mortgage serviced by Freedom Mortgage and are looking to refinance, you may be able to view rate offers by logging in to your account.

If you aren't already a customer, you'll have to call the lender or fill out a form to get started. A loan officer will contact you to provide rate information.

Alternatives to a home loan from Freedom Mortgage

Bank of America offers similarly low interest rates, and Flagstar Bank offers a competitive variety of government-backed loans.

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Methodology

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).

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