The Best Mortgage Lenders (2024)

If you’re in the market for a new home, you’ve probably been told to “shop around” for your mortgage. In reality, that is easier said than done.

The U.S. is home to more than 4,300 mortgage lenders, ranging from small credit unions to online startups to national banks. Picking the right one can save you thousands of dollars, or even tens of thousands, over the life of your loan. Picking the wrong lender, on the other hand, can sometimes mean not qualifying for a mortgage at all.

To give you a head start, we took a deep dive into the nation’s largest mortgage lenders, looking for the ones that are most likely to offer the best deals on loan products that meet a typical Wall Street Journal reader’s needs.

Since getting the best interest rate is key, we crunched data on more than 5.6 million individual loans, then did the math to see which lenders have the lowest rates on average. We also considered which lenders charge the lowest closing costs.

Because professional help is good too, we talked to mortgage professionals and lenders themselves to come up with a vetted list of companies that stand out from the pack—in either service, availability, loan options, costs or their specialization.

• Best overall
• Best for first-time buyers
• Best for affordability
• Best for jumbo loans
• Best for self-employed borrowers
• Things to know about mortgages
• How we picked

Best overall

Key stats:

• Loan options: Conventional, FHA, VA, jumbo, home equity
• States served: 50 states and Washington, D.C.
• Credit score minimum: 580 (FHA, VA), 620 (conventional), 680 (jumbo)
• Interest rates: Second-lowest average rate of lenders analyzed

Why we picked it: Rocket Mortgage is no hidden gem. It’s one of the biggest names in mortgage, and from our analysis—which saw the company rise to the top in rates, service and loan offerings—we see why.

The company—formerly Quicken Loans and the first major online mortgage lender in the industry—originated more than 1.2 million loans in 2021. That’s nearly double the next-biggest lender.

According to our analysis of Home Mortgage Disclosure Act data for 2021, Rocket logged the second-lowest average interest rates for the year, behind only Freedom Mortgage.

The company also has a slew of cost-assistance programs. Though many companies offer incentives to buyers with smaller incomes or little in savings, Rocket has some of the most notable. With the Purchase Plus program, for example, qualifying first-time buyers can get up to $7,500 toward their down payment and another $500 to cover their appraisal.

The company also recently had an Inflation Buster mortgage, in which Rocket footed the bill for a one-year mortgage rate buy-down to help offset the costs of higher inflation. Its Rate Advantage program was noteworthy, too. This offered to cover a portion of a borrower’s future refinance costs if interest rates drop in the next few years. (Unfortunately, both of these expire on March 30.)

The lender boasts a range of loan programs, and terms are flexible, too. You can choose the typical 30-year term or go for shorter-term options—as low as eight years for fixed-rate loans. Rocket’s average closing time—just 21 days for refinances and 34 for purchase loans—is also on the low end of those we analyzed.

Finally, we can’t talk about Rocket without nodding to its robust digital platform, which allows borrowers to apply online, customize their loan options and in many cases, sign their closing documents digitally. (To be fair, a lot of companies now offer these services—at least, to some degree, but Rocket led the way.) You can even apply for your loan and message customer service via the company’s handy mobile app.

Caveats: There are drawbacks to using Rocket Mortgage—despite it being our top-ranked lender. For one, Rocket is fully online, so you can’t get in-person help should you need it. (Though it’s important to note: Rocket’s loan advisors are available by phone until midnight EST most days.) The lender also doesn’t offer USDA loans, and its closing costs were on the higher end of the range for lenders we analyzed.

The company has also had a few recent regulatory actions against it—including one regarding its advertised interest rates and certain other advertising practices. The case has been settled without any admission of wrongdoing.

We also recommend: United Wholesale Mortgage

We opted for Rocket Mortgage for our best lender because of its rates, service and loan availability—not to mention its easy do-it-yourself online process. But if you’re willing to let go of the reins a bit and work with a mortgage broker (think of them as personal shoppers, but for mortgages), then United Wholesale Mortgage could be another smart option to explore.

Mortgage pros say the company offers lightning-fast closing times, a variety of loan options and competitive rates. According to our analysis, their 2021 rates were in the lower half of the range of the companies we looked at. As Andrew Russell, a mortgage broker and owner of RCG Mortgage in New York, explains, “United Wholesale has the best service levels and turn times. They’re built for speed and service.”

Note: UWM does have one recent regulatory action against it, which has been settled. You can view details of this action and other (older) actions at its NMLS profile.

Best for first-time buyers

Key stats:

• Loan options: Conventional, FHA, VA, USDA, jumbo, Heloc, construction
• States served: 50 states and Washington, D.C.
• Credit score minimum: 520 (FHA, VA), 620 (conventional, USDA), 660 (jumbo)
• Interest rates: Lower half of lenders we analyzed

Why we picked it: First-time home buyers are often on tight budgets, have thin credit files and need a little hand-holding during the mortgage process. If any of these applies to you, then look to loanDepot.

The company has just about everything a first-time home buyer could want: low interest rates, low credit score minimums and good customer service. The lender boasts interest rates on the lower end of our list, according to our analysis of 2021 HMDA data. Borrowers taking out Federal Housing Administration or Department of Veterans Affairs-backed loans can have credit scores as low as 520—the lowest minimum of all the lenders we analyzed. LoanDepot also has strong ratings and customer reviews with both the Better Business Bureau and Trustpilot.

Also notable is loanDepot’s variety of products, which include everything from conventional and FHA loans to home equity lines of credit, renovation loans and new-construction loans, which few lenders we analyzed offer. The company even allows jumbo loans up to $3 million—one of the higher limits among lenders on our list.

LoanDepot offers a totally online application process, though if you need a little more assistance, there are 250 bricks-and-mortar locations nationwide. Other features first-time buyers may find particularly helpful include a partnership with Relocator that can help you set up or transfer utilities, trash services and cable and Wi-Fi connections. Different partnerships offer credit monitoring services, discounted smart-home packages and, in some cases, cash back if you buy through a partner agent.

Caveats: There weren’t many drawbacks we found with loanDepot, though its rates were a bit higher than Rocket’s. Its average closing costs, according to 2021 HMDA data, were also in the upper half of the range of those of the lenders we analyzed (though nowhere near the highest).

The company also has one recent regulatory action against it—for working as an unregistered loan servicer in Massachusetts. The case has been settled with no admission of wrongdoing.

We also recommend: Freedom Mortgage and Guild Mortgage

Our first runner-up for this category is Freedom Mortgage, which charged the lowest average interest rate of any company we considered. Freedom also does the largest share of FHA loans among the lenders we analyzed. (FHAs are a popular choice with first-time buyers because of lower credit score and down payment requirements.) We chose loanDepot over Freedom because of its higher customer reviews, new-construction loans and lower credit score requirements, which are helpful to many first-time home buyers.

Note: Freedom Mortgage has several recent regulatory actions against it, though all have been settled or closed. You can view these and other (older) actions at the company’s NMLS profile.

Guild Mortgage also claims a runner-up spot thanks to a unique first-time home buyer offering. Dubbed the 3-2-1 Home Plus program, it requires first-time buyers to make just a 3% down payment, comes with a $2,000 gift card to The Home Depot and includes at least $1,000 toward closing costs. Just keep in mind: Guild isn’t available in New York, and its rates were in the upper third of lenders we analyzed.

Best for affordability

Key stats:

• Loan options: Conventional, FHA, VA, USDA, jumbo, Heloc
• States served: 50 states plus Washington, D.C.
• Credit score minimum: 580 (FHA, VA), 620 (conventional, USDA)
• Interest rates: Third-lowest rate of lenders we analyzed

Why we picked it: If you’re looking to simply save money, Better may be your best bet, according to our analysis. The online mortgage lender has the lowest average closing costs on our list (by a long shot) and among the lowest average interest rates, too.

It isn’t too surprising: Since its founding, Better’s approach has been to use technology to cut overhead costs and give borrowers a more streamlined and affordable mortgage option. Customers don’t seem to feel they are sacrificing service for those savings, either. In fact, Better claims some of the highest Trustpilot and Better Business Bureau ratings out of our entire list.

The company’s nationwide availability and long list of loan options are notable, too. Better even offers an asset depletion loan that can make it easier for self-employed borrowers and nonsalaried workers to qualify for a mortgage. These allow borrowers to use their liquid assets—such as savings or investment accounts, for example—to qualify for a loan instead of income. It can be a smart option for borrowers who have money in the bank, but not a regular salary (or easily documentable income).

Caveats: There are a handful of downsides to Better. First, there are no bricks-and-mortar locations, so if you want in-person help, that won’t be possible. It’s the same case with Rocket, though Better’s average rates were slightly—and we mean slightly—higher.

Additionally, the company has faced a few regulatory actions in recent years, largely for licensing issues, which have since been settled. It was also the subject of an SEC probe for allegedly misleading investors, and the company made headlines in 2021 when its CEO laid off hundreds of employees over Zoom. (These issues shouldn’t directly impact borrowers, though.)

We also recommend: AmeriSave

As its name suggests, AmeriSave is another option if you’re looking to save a buck. The company offers low interest rates and closing costs, though not quite as low as Better’s, and its customer reviews are some of the best on our list. You can even get a $750 credit toward fees on a future refinance. Closing times are also quick here; about half of customers close in 25 days or less.

Note: AmeriSave has several recent regulatory actions against it, though all have been settled or closed with no admission of wrongdoing. You can view these and other (older) actions at the company’s NMLS profile.

Best for jumbo loans

Key stats:

• Loan options: Conventional, FHA, VA, jumbo
• States served: 50 states and Washington, D.C.
• Credit score minimum: Not disclosed
• Interest rates: Middle of the pack among lenders we analyzed

Why we picked it: Chase gets our nod for best jumbo lender. The megalith bank offers the highest jumbo limits by far (up to a whopping $9.5 million), and judging by its high average loan amount ($457,000 versus the $313,000 average for the remainder of the lenders we analyzed), it’s pretty experienced in larger-than-life loans, too.

Chase had one of the lowest average interest rates, according to our analysis, and if you bank or invest with the institution (or switch to them from your current bank), it could mean even lower rates. Currently, Chase offers from 0.125 to 0.50 percentage points off your rate, depending on how much you have in the bank or in investments. Rate discounts start at $500,000 in deposits and investments or 37.5% of your proposed mortgage loan amount, depending on whether you’re an existing customer or a new one.

As Joshua Messiah, a mortgage broker with PacWest Funding, explains, “The best jumbo lenders are typically ones that you have a banking relationship with—if you have a good amount of assets with a bank or credit union, they typically have the best rates.”

Caveats: Chase’s closing costs were on the high end of the scale for the lenders we analyzed, but that could be a result of the bank’s higher average loan size (many closing costs such as origination fees and discount points are charged as a percentage of the total loan amount). The company also has low customer ratings on Trustpilot and the Better Business Bureau, though those ratings don’t distinguish between banking clients and mortgage clients, so it may not be indicative of its capabilities as a lender.

Finally, Chase’s true standout in the jumbo department is its rate discounts for existing customers, so if you bank or invest with another institution and aren’t willing to make the switch, it may not be your most affordable option.

We also recommend: Bank of America

Brokers agree that national banks with whom you have a pre-existing relationship are typically your best bet for a jumbo loan. And the second-best big-bank lender we analyzed? That’d be Bank of America. The company offers low rates (lower than Chase’s, on average), low closing costs and a nationwide reach. Its current discount for existing customers is 0.25 to 0.375 percentage points, depending on how much you have deposited with the company. We chose Chase over Bank of America because of its higher loan limits ($9.5 million versus Bank of America’s $5 million) and deeper potential rate discounts for existing customers.

Note: Bank of America has two recent regulatory actions against it, though they pertain to credit card and bank account issues—not mortgages. You can view these and other (older) actions at the company’s NMLS profile.

Best for self-employed borrowers

Key stats:

• Loan options: Conventional, FHA, VA, USDA, jumbo, self-employed loans
• States served: 50 states and Washington, D.C.
• Credit score minimum: 620 (FHA, VA)
• Interest rates: Middle of the pack among lenders we analyzed

Why we picked it: Out of all the lenders we analyzed, Caliber Home Loans is one of the very few that offers a loan program designed for self-employed borrowers. The “SmartSelf” loan allows self-employed and other workers without traditional W-2 income to qualify for a mortgage using only bank statements to show regular cash flow. (Most mortgages require tax returns, which, for most self-employed borrowers, don’t reflect their full earning capacity—especially after deductions). The loans go up to $3 million and come in both fixed- and adjustable-rate options.

Though its average rates are in the middle of the pack, according to our analysis, Caliber’s closing costs are on the very low end of the scale for lenders we looked at. The company also offers both online and bricks-and-mortar service options.

Caveats: On the downside, Caliber has had one recent regulatory action against it—regarding the activities of two of its loan officers. The case has been closed with no admission of wrongdoing. The company also recently settled two lawsuits regarding loan modifications and misleading advertising practices from the attorneys general in Massachusetts and Maryland. In the latter, the company denied any wrongdoing.

We also recommend: A number of smaller lenders

Our main category winners consist of lenders in the Consumer Financial Protection Bureau’s top 20 for origination volume for 2021, but the mortgage brokers we spoke to recommended smaller lenders for self-employed and nontraditional borrowers. These included Angel Oak Home Loans, Axos Bank, AD Mortgage and 5th Street Capital, all of which offer nonqualified mortgage and bank statement loans for self-employed borrowers.

Other lenders we considered

For this list, we considered the top 20 lenders by volume according to HMDA data from 2021. Those not noted above include Wells Fargo, Fairway Independent Mortgage Corporation, Home Point, Guaranteed Rate, Mr. Cooper (formerly Nationstar), U.S. Bank, PennyMac and Movement Mortgage.

Lenders that weren’t included either had no standout feature that would rank them in one of our chosen categories or their rates, closing costs, customer reviews, accessibility or loan options weren’t as outstanding as those of other companies we analyzed. For the full list of factors on which each lender was evaluated, see our “How we picked” section below.

Things to know about mortgages

Understanding mortgage loans—and the mortgage process—is important before buying a home. Not only can it prepare you to choose the right loan program and lender for your needs, but it can also ensure you get the best terms and interest rates possible.

Here’s what you should know before diving in:

Types of mortgage loans

There are many types of mortgage loans to choose from. Some are better for lower-credit borrowers or those shopping in a higher price range, while others are designed for military members or buyers in more rural parts of the country.

The most common types of mortgage loans include:

Conventional conforming loans: Conventional conforming loans are mortgages that aren’t tied to any government-insurance program. Instead, they adhere to lending guidelines set out by mortgage purchasers Freddie Mac and Fannie Mae. For 2023, they must fall under $726,200 in most parts of the U.S. (though the limits are higher in pricier markets). You’ll usually need a higher credit score to qualify for these than you would for government-backed loans. Case in point: The average conventional borrower had a 759 credit score in 2021; FHA borrowers averaged just 664.

Conventional conforming loans are the most common type of mortgage loan in the U.S., accounting for more than 70% of all originations in 2021, according to the CFPB. Depending on your lender and the size of your down payment, they may require mortgage insurance—called private mortgage insurance, in this case. The good news is that this type of insurance is cancelable. Once your loan dips to 80% of your home’s value or less, you can ask your lender to remove PMI from your payments.

FHA loans: FHA mortgages are loans that are guaranteed by the Federal Housing Administration, meaning the government will repay lenders—at least partially—if a borrower fails to make their payments. Because this lessens the risk a lender takes on a loan—and how much money is on the line—it allows lenders to offer more lenient terms than are typical for conventional loans. Technically, the FHA allows for credit scores down to 500 if you make at least a 10% down payment—though lenders can use their discretion. Most set their minimums at 580 or higher, regardless of down payment size.

FHA loans also require mortgage insurance—called a mortgage insurance premium—in all cases. Borrowers pay an upfront fee and then an annual fee that is divided across monthly mortgage payments. In some cases, MIP is cancelable 11 years into the loan, but the majority of FHA borrowers pay MIP for life or refinance.

If you’re considering an FHA loan, all category winners listed above offer these mortgages. LoanDepot has the lowest credit score minimum among the lenders we analyzed.

VA loans: VA mortgages are guaranteed by the Department of Veterans Affairs. Only active-duty U.S. military members, veterans and some Reserves and National Guard members can qualify—plus some surviving spouses of veterans—and even then, they must meet certain service length and discharge requirements.

For those who qualify, VA loans can be a huge help in buying a home. Most important, they require zero down payment. They also tend to come with the lowest interest rates out of all the most common loan programs, require no mortgage insurance and limit what sort of fees a lender can charge.

All category winners listed above offer VA loans. If you opt for a lender outside this list, make sure they are authorized to issue VA loans (not all mortgage companies are).

USDA loans: USDA mortgages are another government-backed loan program, this time designed for home buyers purchasing properties in more rural parts of the country. They’re backed by the Agriculture Department, and, like VA loans, these also require no down payment.

Only homes in rural and some suburban parts of the U.S. are eligible for USDA loans. You can check to see if a home you’re considering is eligible using this property eligibility map. Borrowers also can’t make more than 115% of the median household income for the area.

Not all our winning lenders offer USDA loans. If you’re considering one of these, look to loanDepot, Better Mortgage or Caliber Home Loans.

Jumbo loans: Jumbo loans are conventional mortgages that exceed the Federal Housing Finance Agency’s limits—meaning they’re for loans larger than $726,200 in most areas (or $1,089,300 in higher-priced markets). These limits change annually.

Due to the bigger financial risk lenders take on when originating these loans, jumbo mortgages require higher credit scores and bigger down payments. They also may have higher interest rates.

All our category winners offer jumbo loans, but not all mortgage companies do. Additionally, jumbo loan limits can vary widely from one lender to the next. If you’re considering one of these loans, make sure to compare limits and offerings before deciding which lender to go with.

Nonqualified mortgage (non-QM) loans: These are loans that don’t have to adhere to FHA, USDA or VA rules or guidelines from Freddie Mac and Fannie Mae. They are designed for borrowers with lower credit scores or unique financial situations, such as small-business owners or freelancers. Sometimes, these are called bank statement loans, as they allow borrowers to qualify based on their bank statements alone—not W-2s and tax returns like traditional mortgages.

Among our winners, only Caliber Home Loans offers non-QM loans. If you’re considering this type of mortgage, compare at least a few lenders to ensure you get the best rate. Interest rates on these loans tend to be higher than on other loan programs due to the higher risk they present for lenders.

How mortgage rates are set

You might see mortgage rates published in various places—or even advertised by lenders themselves—but these are usually averages or, in many cases, only the best rates, which only the lowest-risk borrowers can qualify for.

In reality, mortgage rates are highly dependent on the borrower and the unique risk they present to the lender. To assess this risk, mortgage lenders look at the following:

• Credit score
• Down payment
• Debt-to-income ratio (how much of a borrower’s income their monthly debt payments take up)
• Home value and loan-to-value ratio
• Type and length of the mortgage loan

Usually, you can expect borrowers with higher credit scores, lower debt-to-income ratios and bigger down payments to get the best interest rates. Those with lower scores, higher DTIs and smaller down payments will generally get higher rates and pay more for the same sized loan.

Note: The rate averages for lenders noted above were calculated using 2021 HMDA data, but they don’t necessarily reflect the exact rates you may be offered as a borrower today. If you’re looking to get the lowest rate on a mortgage, we recommend getting quotes from at least a few lenders, as there could be a wide variance from one company to the next.

How to choose a lender

As you can see above, mortgage lenders can vary quite a bit, so it’s important to do your research before choosing which to get your mortgage from. The right choice largely depends on what type of loan you’re getting, your credit score and where you’re buying a home (since not all lenders service every state).

One way to shop around is to pick three to five lenders and apply for preapproval with each. Once they have evaluated your application, you should receive a loan estimate, which will break down all the details and fees associated with the loan they can offer you. You can use this to compare lenders and determine which is best for your goals.

You can also work with a mortgage broker. These are third-party mortgage professionals who have access to loans from all sorts of banks, lenders and financial institutions. They’ll typically ask you about your goals and financial situation and then recommend which lenders may be best. They’ll then help you apply and close on your loan. In most cases, brokers are paid a commission by the lender you choose to go with.

How we picked

The goal of our best mortgage lenders list was to zero in on mortgage companies that stand out from others in the industry—in cost, service and specialty.

To choose our best mortgage lender winners, we started with the Consumer Financial Protection Bureau’s top 20 lenders by volume for 2021. We also analyzed 2021 Home Mortgage Disclosure Act data—which includes loan information from 4,338 banks, 22.7 million loan applications and 14.5 million originated loans—to determine average loan amounts, interest rates and loan costs for each lender.

We also used the CFPB’s enforcement database and the Nationwide Multistate Licensing System & Registry to identify any regulatory or government actions against a lender within the last five years. These provide insight into a lender’s general business practices and their compliance with state and federal consumer protection laws. Depending on how a lender is chartered, it may be subject to roughly 30 state reviews each year or may have on-site supervision from the Office of the Comptroller of the Currency.

We factored in other data points, too, including customer ratings from Trustpilot and the Better Business Bureau. Information on loan offerings, buyer incentive programs, advertised rates, credit score minimums and the number of states served was provided by lenders or pulled from their websites. We favored lenders with a nationwide reach rather than just a regional one.

Finally, we also sought expertise from mortgage professionals with firsthand knowledge of these lenders. These pros included Joshua Massieh, chief executive officer of San Diego-based mortgage brokerage PacWest Funding and Andrew Russell, founder of RBC Mortgage, a mortgage brokerage based in Hauppauge, New York.