How Does Better Mortgage Keep Their Prices So Low? | Better Mortgage (2024)

FAQs

How Does Better Mortgage Keep Their Prices So Low? | Better Mortgage? ›

Simply put, many traditional lenders use antiquated, fragmented processes that take a lot of time and people power. At Better, we've built technology to streamline the entire homebuying and mortgage process, making it cheaper for us to make the loan which means we can then pass the savings on to you. Win win.

Trends and conditions in the housing market also affect mortgage rates. When fewer homes are being built or offered for resale, the decline in home purchasing leads to a decline in the demand for mortgages and pushes interest rates downward.

Better Mortgage, in its sole discretion, may consider a loan estimate proxy (e.g., rate sheet) from another mortgage lender as a valid Competitor Offer; provided that the interest rate and loan terms on such loan estimate proxy are not contingent on any other transaction or relationship forming between the Customer and ...

100% online application process

While many traditional lenders still require physical paperwork and inconvenient in-person meetings, our home loan application is completely online. You'll also save time by e-signing documents, linking bank accounts, and securely uploading files.

Increasing your income, paying down debts, and boosting your credit score can all help lower your risk as a borrower and qualify you for a lower mortgage rate. You can also save up for a larger down payment, as it means the lender has less cash on the line. "Mortgage pricing is all about risk," Sanford says.

Whereas most traditional lenders only work with a handful of investors, we've developed technology to match our borrowers with the investors who are most interested in purchasing their loan. This allows us to offer low rates that have saved homebuyers thousands of dollars over the course of their loan.

What's the Lowest Mortgage Rate in History? The average 30-year fixed mortgage rate reached an all-time record low of 2.65% in January 2021, according to Freddie Mac.

Better Mortgage's Better Business Bureau (BBB) rating is 4.15 out of 5 stars based on 951 reviews in January 2023. The BBB has closed 53 complaints about the company in the last 12 months, and 234 complaints in the last three years. The BBB gives Better Mortgage a B rating.

Better doesn't charge any origination, application or processing or underwriting fees — a big boost to its affordability quotient. Better's annual percentage rates (APRs) closely track with Bankrate's national averages, so it doesn't charge fees, the cost to borrow from Better is comparable to many lenders.

Who is the owner of Better Mortgage? ›

Vishal Garg is the Founder and CEO of Better.com, America's #1 online mortgage company…

Better Mortgage is a solid contender in the digital mortgage space. But with a below-average customer service rating and a focus on speedy loan commitments and closings, it may be best suited for borrowers who live in a competitive real estate market and have been down the home-buying road before.

The Fed sets the federal funds rate based on economic conditions, which affects financial institutions' borrowing costs. This, in turn, affects the prime rate — the rate banks set as a baseline for the APR you're charged for loans like your home loan.

“Given the news that inflation eased slightly, the 10-year Treasury yield dipped, leading to lower mortgage rates. The decrease in rates, albeit small, may provide a bit more wiggle room in the budgets of prospective homebuyers,” said Sam Khater, Freddie Mac's Chief Economist.

If you lock in a fixed mortgage rate with a lender, the prime rate won't affect the rate you receive. Specifically, fixed-rate mortgages are usually lower than the prime rate because lenders sell mortgages to major mortgage investors, such as Fannie Mae and Freddie Mac.

It's possible that rates will one day go back down to 3%, though if current trends hold that's not likely to happen anytime soon.

Mortgage interest rates fell to historic lows in 2020 and 2021 during the Covid pandemic. Emergency actions by the Federal Reserve helped push mortgage rates below 3% and kept them there. The story changed in 2022. With inflation running ultra-hot, mortgage interest rates surged to their highest levels since 2002.