Better Mortgage Review 2024
Ratings and reviews are from real consumers who have used the lending partner’s services.
Ratings and reviews are from real consumers who have used the lending partner’s services.
580 to 620
0% to 10%
Conventional, FHA, VA, Jumbo and HELOCs
See how we reached our verdict below.
- Preapproval in as little as three minutes
- 100% online application process
- 24/7 customer support
- No mortgages for modular homes, co-ops, mixed-use properties or multi-family homes with five or more units
- No USDA loans
- Loan may be transferred to a different, permanent servicer after closing
Better Mortgage overview
Better Mortgage is a technology-oriented online lender. Founded in 2014, it specializes in providing a digital path to a mortgage with a fully online application process.
- Areas of service: All 50 states and Washington, D.C.; not available in Puerto Rico
- Digital service: Offers digital-first mortgage approach with 100% online application process
- Headquarters: 3 World Trade Center, 175 Greenwich Street, 57th Floor, New York, NY 10007
- Website: Better.com
Better Mortgage rates, terms and fees
Rates
Better Mortgage prioritizes transparency and publishes estimated rates for all products on its website. You can enter your ZIP code to quickly see the current rates in your area.
Better Mortgage’s rates are competitive, coming in at 0.04 percentage points below the average prime offer rate (APOR) in 2023. The APOR is a benchmark that is based on average mortgage interest rates and fees and is the lowest APR you’re likely to get from a bank in the current market. It is updated weekly by the Consumer Financial Protection Bureau.
Better Mortgage’s rate spread decreased by 0.18 percentage points between 2022 and 2023.
Fees
Better claims to never charge “unnecessary” fees, so you won’t get hit with application or processing fees. This doesn’t always mean you’re getting a great deal, however, as lenders may simply fold these fees into another part of the loan.
You may also still need to pay third-party fees like an appraisal fee, credit check fee or title fees. You won’t need to pay any of these fees until after you’ve received the disclosure documents from Better and agreed to proceed with the loan.
The average total cost of a Better mortgage was $7,068 in 2023, according to data from the Federal Financial Institutions Examination Council (FFIEC) that includes some—but not all—closing costs and fees. You can get an estimate of the closing costs you may pay on the current rates pages published on Better’s website.
What discounts does Better offer?
You can save $2,000 on closing costs by using Better Mortgage Corporation as your lender and by using a real estate agent referred to you by Better Real Estate.
What types of mortgage loans does Better Mortgage offer?
Better offers a variety of home loans, including:
Conventional loans
Better Mortgage offers fixed- and adjustable-rate conventional loans for home purchases, as well as rate-and-term and cash-out refinances.
Conventional loan qualification requirements
- 620 minimum credit score
- 5% minimum down payment
- Debt-to-income ratio (DTI) of 50% or less
FHA loans
Better Mortgage offers loans backed by the Federal Housing Administration (FHA). These tend to be easier to qualify for than conventional mortgages.
FHA loan qualification requirements
- 580 minimum credit score
- 3.5% minimum down payment
- DTI of 43% or less
VA loans
Better Mortgage offers VA loans to eligible U.S. veterans, active service members, certain National Guard members and reservists and eligible surviving spouses.
VA loan qualification requirements
- May require a 620 minimum credit score
- 0% down payment
- No private mortgage insurance (PMI) required
Jumbo loans
Better Mortgage offers fixed-rate jumbo loans with 15-, 20- or 30-year terms, as well as 30-year adjustable-rate mortgages with periods of fixed interest rates over five, seven or 10 years. Jumbo loans are available for primary and secondary homes and investment properties, each of which can have up to four units. However, first-time homebuyers can only qualify for jumbo loans for primary residences.
Jumbo loan qualification requirements
- 700 minimum credit score
- DTI of 43% or less
- Loan amounts up to $3 million
- 10% minimum down payment
Home equity loans
Better offers fixed-rate home equity loans and adjustable-rate home equity lines of credit (HELOCs) for between $50,000 and $500,000. Both are available for primary, secondary or investment properties. Home equity loans can be repaid over 15, 20 or 30 years. You can draw from HELOCs for three or 10 years. To repay a HELOC, you can pay interest only for five or 10 years, and then principal plus interest for 10, 15 or 20 years.
Home equity loan qualification requirements
- 680 minimum credit score
- Access up to 90% of your home’s equity
Better mortgage qualifications
| Credit score minimum |
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| DTI ratio Debt-to-income (DTI) ratio compares your monthly gross income to your monthly debt payments. maximum |
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| Down payment minimum |
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Don’t know your credit score? Get your free score on LendingTree Spring today.
How to boost your loan approval odds
We can look at nationwide data from 2023 to get insights into how to boost your chances for loan approval with Better Mortgage. For example, across all loan types, applicants who were approved had an average loan-to-value (LTV) ratio, which compares the size of a mortgage to the home’s value, of just under 81%. More than half had a DTI below 40%.Better Mortgage had a rejection rate of about 13% across all loan types in 2023, which is on the lower side relative to other lenders. Rejection rates ranged from under 10% to upward of 60% that year.
How to apply for a Better mortgage
1. Choose your loan type
From Better’s website, you can choose if you want to buy, refinance, or get a HELOC from the top menu bar.
2. Get prequalified
A mortgage prequalification will give you an estimate of the loan amount you may qualify for based on information you give the lender.
3. Submit a loan application
Once you submit your application, Better will let you know if you’ve been preapproved for a mortgage in as little as three minutes. Preapproval is not a commitment from the lender, but it will tell you the exact loan amount you qualify for. It will also allow you to lock in a rate while you decide if you’ll accept the loan.
Documents you’ll need for prequalification or preapproval
- Identification
- Tax documents
- Bank statement
- Pay stubs
- Debt and asset statements
- Gift letters (if you’re using gifted funds)
Find out more about how to apply for a home loan.Is it safe to get prequalified with Better?
It is safe to get prequalified with Better Mortgage. While preapproval often requires a hard pull on your credit report, prequalification is only a soft pull, so it won’t affect your credit score. Prequalification can help you be a more savvy home shopper by telling you the loan size you may get. You’ll also have a prequalification letter you can show to sellers so they know you’re serious.
Better’s customer service experience
Better’s customer service is available via phone from 8 a.m. to 9 p.m. EST Monday through Friday or 9 a.m. to 9 p.m. EST on the weekends. You can also email them 24/7.
- Phone: 415-523-8837
- Email: [email protected]
This is a similar level of support you’ll find from other lenders. Better also has an extensive FAQ and resource library that can help answer your questions.
How does Better compare to other lenders?
 |  |  |
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|---|---|---|---|
| LendingTree's rating | |||
| Minimum credit score | 580 to 620 | 620 | Not disclosed |
| Minimum down payment | 0% to 5% | 3% to 5% | 0% to 3% |
| Rate spread Rate spread is the difference between the average prime offer rate (APOR) — the lowest APR a bank is likely to offer any private customer — and the average annual percentage rate (APR) the lender offered to mortgage customers in 2023. The higher the number, the more expensive the loan. | -0.04% | 0.26% | 0.17% |
| Loan products and programs |
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| Better for | Better is the best option if you want a fully digital loan process, or need a fast rate quote or preapproval | SoFi is a great pick for fixed-rate conventional or jumbo loans, especially if you want terms not available through other lenders | Chase is the best option if you're looking for closing cost discounts and mortgage points through homebuyer grants or credits, especially if you're already a Chase customer |
Better Mortgage vs. SoFi
SoFi Bank offers a range of loan terms, including 10-, 15-, 20- and 30-year terms. However, there are no adjustable-rate options. You also can’t apply for a SoFi mortgage online until you’ve gone through the prequalification process, and you will need to meet in person at closing. Meanwhile, Better is a fully online experience with rate quotes and preapproval available within minutes.
→ Read more in our full SoFi mortgage review.
Better Mortgage vs. Chase
Chase offers homebuyer grants or credits you can use to help cover closing costs or lower your down payment. If you’re already a Chase customer, you may also qualify for a 0.25% interest rate discount on the standard rate.
→ Read more in our full Chase mortgage review.
Ready to compare lender offers on LendingTree? Get Your Rates TodayHow LendingTree rated Better Mortgage
LendingTree’s mortgage lender rating is based on a five-point scoring system that factors in several features, including digital application processes, available loan products and the accessibility of product and lending information.
LendingTree’s editorial team calculates each rating based on a review of information available on the lender’s website. Lenders receive a half-point on the “offers standard mortgage products” criterion if they offer only two of the three standard loan programs (conventional, FHA and VA). In some cases, additional information was provided by a lender representative.
Better’s scorecard:
Publishes rates online
Offers standard mortgage products
Includes detailed product info online
Shares resources about mortgage lending
Provides an online application
= 0 points = 0.5 points = 1 point
Frequently asked questions
Better offers a fully online lending experience. You can compare rates or get personalized quotes and preapproval all online. You can also read about the homebuying or refinancing process and other real estate topics in general in the company’s free online learning center.
Better Mortgage is a legitimate mortgage lender that is the lending arm of the Better Mortgage Corporation. Better Mortgage Corporation is licensed to do business in all 50 states and Washington, D.C. You can read more about the Better Mortgage Corporation’s state licenses and registrations on the Nationwide Multistate Licensing System and Registry (NMLS) website.
You can view more info about Better’s state licenses and registrations through the Nationwide Multistate Licensing System and Registry (NMLS) website.
Taking out a mortgage from any lender, including Better Mortgage, will affect your credit score. However, this impact is likely to be no more than 20 points on average and will usually return to its pre-loan level within one year.
Better has an “excellent” rating on TrustPilot with 4.4 out of 5 stars from more than 1,700 reviews. Customers commend the company’s application process and the friendliness and helpfulness of its customer service representatives. They also noted the rates tend to be better than the competition’s.
However, customers who left critical reviews claimed the process was “arduous” and that communication dwindles throughout the loan process. Some also mentioned “unrealistic” preapproval terms.