Better.com Mortgage Refinancing Review – Pros, Cons, and Options for All

Introducing a company that’s striving for a better way forward in the mortgage loan refinancing process.

Although mortgage loans are one of the most common debts that Americans take on, securing the right one can be a struggle. Whether it comes to understanding fees, picking a lender that supports you, or finding a product to match your expectations, it’s often an uphill battle. Companies like Better.com are out to change the status quo of mortgage loan refinancing.

Even with a process as complex as buying a home, consumers still crave simplicity and speed. Online lenders can offer these qualities with paperless processes, fast quotes, and on-demand customer support. But with so many options to choose from, it can be challenging to know which companies are truly customer-focused.

In this Better.com review, you’ll get a glimpse at what makes this startup company unique and appealing. You’ll also have a chance to review products and services, evaluate pros and cons, and explore things like costs and fees. As you research your mortgage loan refinancing options, keep reading to learn more about one you might not have considered!

Better.com: What You Need to Know

Better.com began when CEO Vishal Garg set out to change the standards of the traditional mortgage process. In a world filled with hidden costs, frustrations, and incentivized sales, Garg struck out to offer something different.

As a company, Better.com wants to change the way that most Americans secure home loans or refinance their existing loans. This is accomplished by replacing the old infrastructure with new processes that include paperless processes, 24/7 access, and instant loan estimates.

Additionally, Better.come agents never work on commission, which means they aren’t incentivized to sell particular products. There are also no origination fees, which sets the company apart from traditional lenders.

Recognition and Support

Although it’s a relatively new startup, Better.come is backed by some of the top names in financial services around the country. These backers include:

• Goldman Sachs
• Citi Bank
• Kleiner, Perkins, Caufield, Byers (KPCB)
• Ally
• American Express
• Pine Brook

Moreover, Better.com has been recognized by national publications such as Nerdwallet, Forbes, Fortune Magazine, and Inc. Not only is the company known for its innovative approach to customer service and support, but it’s also a force for good in improving company culture and work environment.

Read more from Inc.com on what makes Better.com one of the most innovative startups of the year.

How Does Mortgage Loan Refinancing Work?

Mortgage loan refinancing works by securing a new loan to pay off an existing home loan. Usually, when you begin refinancing, the new lender of choice will coordinate with the previous lender to determine a payoff amount and to close the account.

Refinancing is similar to the original process of securing a home loan. You’ll need to apply, receive a verified pre-approval and rate estimate, and work with a loan officer. Additionally, you’ll go through a similar background process of providing personal, financial, and property information.

According to Better.com, the speed of the refinancing process often depends on:

• Level of preparation. Coming to the table with accurate financial details will help the refinancing process go more quickly. This includes having accurate W2s, bank statements, personal identification, and more. Before you apply to refinance, make sure to have these items at the ready.
• Response times and buyer action. The experts at Better.com have witnessed firsthand how response times can impact completion time. When borrowers respond quickly to requests for new documentation or other important details, the process keeps moving.
• Excellent communication. Communication encompasses everything from documentation to the ability to ask good questions. Borrowers should also express their expectations and raise any red flags they have before moving into the final stages.

Better Technology and Easy Online Processing

One of the major benefits of using Better.com is having access to innovative and industry-leading technology. The behind-the-scenes technical aspects allow Better.com to offer customers the best competitive interest rates with more visibility.

Additionally, customers can check in at any time by signing in to their online account. Through this portal, customers can access loan status and upload important documents. 24/7 access keeps the refinancing process moving without pause.

If you’re just now considering whether refinancing is right for you, start by doing some basic research. In 5 Ways to Prepare for a Refinance, the Better.com team shares how you can determine your big picture goals and get organized when it comes to paperwork and documentation.

Where is Better.com Available?

Better.com is headquartered in New York City, New York. The company is currently able to serve customers in 43 states, in addition to residents of Washington D.C. To check whether Better.com is available in your home state, find the current list here. State rules and regulations may still apply depending on your location.

How Much Does Better.com Cost?

With Better.com, there are no origination fees or hidden costs. In fact, that’s one of the mission statements that govern the way Better.com does business.

That being said, there are some closing costs and fees associated with any refinancing process. These include closing costs, appraisal fees, settlement fees, and more.

You can calculate your own estimate by using this incentive calculator that lets you plug in different loan amounts, credits, and interest rates. All of these factors build the full picture of your loan or refinance.

What Type of Mortgage Loan Refinance Does Better.com Offer?

Better.com is a direct lender that provides access to standard home loans and refinancing products. These options include both fixed and flexible rate mortgages, which determine how a homebuyer pays interest over the life of the loan. Currently, Better.com has fixed rate FHA loans and adjustable rates on conventional and jumbo loans.

Traditional Refinancing

Traditional refinancing offers apply to:

• Single-family homes
• Multi-family homes (up to 4 units)
• Townhomes
• Condominiums
• Planned unit developments (PUDs)

Refinancing applies to homes that are owned by individuals. At this time, the company does not extend refinancing offers to homes that are owned by LLCs.

Special Offer for Texas Residents

Additionally, Better.com offers a unique option to Texas residents called the Texas Cash Out Home Equity Loan. This is a type of refinance where you are approved to take cash out of the equity of your residence or homestead. Although this is a great option to take care of other expenses, borrowers should remember that they are essentially removing equity from their home.

Pros and Cons of Using Better.com for Mortgage Loan Refinancing

Better.com offers a great option for savvy customers who want to look outside of the box for a mortgage loan or refinancing offer. Despite its benefits, there are a few drawbacks that homebuyers should be aware of. Below is a list of important pros and cons.

Pros

• Better.com is perfect for high-tech customers who want a different type of home loan or refinancing experience.
• There is a high level of customer support for questions and status check-ins.
• An intuitive platform helps customers find the best rates and secure any applicable discounts or savings.
• Closing on a new loan is often accomplished in as little as 21 days, almost twice as fast as the industry standard.
• Pre-approval letters arrive quickly and easily, with the opportunity to connect with a loan officer as soon as the application is received.

Cons

• Unfortunately, Better.com is not available in all 50 states. Depending on where you reside, it may not be an option.
• Better.com doesn’t offer home equity loans (HELOCs) or low down payment loans such as VA or USDA. This could eliminate some potential buyers from the process.
• There are no physical store locations, which means that the entire process is online.

Any Discounts on Better.com Products?

Although there are no outright discounts on Better.com financial products, there are key policies in place to help customers get the best prices and rates. The Better Price Guarantee states that the company will beat any competitor’s price by $1,000, or they will pay the customer $1,000.

If a customer believes that another company is offering a better rate, they simply need to send in the competitive price within one business day from the date on the Loan Estimate.

Better.com Reviews from Happy Customers

Although Better.com is a startup company, they already have a detailed history of helping tens of thousands of customers secure mortgages. The company currently maintains a 4.6 star review on Google Reviews and a 3.7 start review on Bankrate.

Better.com has also been awarded the Best Mortgage Lender in Refinancing award by Nerdwallet for 2020.

**Here are some notable things that reviewers had to say about using Better.com for mortgage loans and refinancing. **

_“Better Mortgage was the best experience I ever had with a refinance. In my lifetime I have purchased 3 homes and refinanced 5 times and this was by far the most efficient process. Their online process is easy to follow and clear about what needs to be uploaded. As a business owner having to provide additional documentation, I found their online tools very helpful. The rate I received was among the lowest from any advertised anywhere and I paid no points to get that low rate. The entire process from start to funding took less than 4 weeks. Remarkable.” _– Joe V., Google Reviewer

_“I have completed multiple refinances with online companies. Better Mortgage has been the best by far! They have the process incredibly streamlined and easy. They respond quickly to any questions and keep you updated on the process. I would highly recommend them to anyone considering accessing online financing. Best of all they had amazing rates!” _– Joe M., Google Reviewer

_“Everyone was so professional, the follow up was great, the rate was good, inspection, closing, nothing was less than stellar. It was so fast, and everytime I had a question, they answered it quickly, completely, and to our satisfaction. They have a customer for life! My previous experience with my bank of 35 years was so inferior, I'd never go back!” _– J. Dyson, Bankrate Reviewer

How to Apply for an Better.com Mortgage Loan Refinance

Applying for a Better.com mortgage loan refinancing or new home loan is simple and user-friendly. Review the steps below to learn how you can quickly submit your information and apply today.

On the Web

1. Visit the homepage at https://better.com/.

2. Scroll down the page until you see the green “Get Started” button.

3. If refinancing, select the “Continue” button under “I’m refinancing my home.”

4. Submit all property, personal, and financial information on each page of the form.

5. A basic pre-approval letter arrives in as little as 3 minutes.

6. Get connected to a loan officer as soon as your basic pre-approval arrives.

7. For a more in-depth and verified pre-approval letter, upload personal and financial documents (about 20 minutes).

8. The full process officially begins, and you can contact a loan officer at any time.

By App

The Better.com application process is completed online. There are currently no mobile app applications available.

H3: By Phone

Customer service agents are available 7 days a week, from 9 A.M. to 9 P.M. by phone at 415-523-8827. While applications are primarily online, customers can receive more information about the application by connecting with an agent.

How to Contact Better.com

Address: 120 Broadway, 5th Floor New York, NY 10271 **General Inquiries by Phone: **415-523-8837 **Inquiries by Email: **[email protected] **Website: **https://better.com/ **Facebook: **https://www.facebook.com/Betterdotcom/ **Content Resources: **https://better.com/content/

More information about how to contact Better.com, in addition to how to reach the company for press inquiries, can be located on the company’s Contact Us page.

Does Better.com Offer Other Financial Products?

Better.com specializes in home loans and transparent mortgage processes. While refinancing is one of the options that the company offers, borrowers can also apply for new loans on the purchase of a home. A full disclosure summary can be found on Better.com’s Mortgage Rates for Home Purchase page.

New Loans for Home Purchases

On the Rates for Home Purchase page, borrowers can use a simplified rate calculator to get a preview of available rates using Better.com. When you use the calculators, you can base calculations off of assumptions (including home price and amount of money down) or you can tweak the settings to a more customizable option.

Better.com offers traditional mortgages for home purchasing in the following ways:

• 30-year fixed mortgage
• 20-year fixed mortgage
• 15-year fixed mortgage
• 10/1 adjustable rate
• 7/1 adjustable rate
• 5/1 adjustable rate

Better.com’s home loan rates are provided in real time, which means that they may change and fluctuate without notice. Additionally, quoted rates are not guaranteed, and a more accurate picture is given after a borrower provides personal financial information. Additionally, Better.com operates from the assumption that a customer’s debt-to-income ratio is less than 35% and that closing costs and fees are paid in cash.

Partnership for Real Estate Agents

Better.com also offers a unique option for real estate agents. Because the company can help buyers close up to two times faster than industry average, it’s the perfect option for agents looking to help customers buy and close on short notice.

Better.com’s technology also makes it easier for buyers and their agents to keep tabs on the closing process at all times. This visibility can help homebuyers make better and more informed decisions, which could result in more satisfied sales. Additionally, real estate agents can have confidence that Better.com’s team of experts will walk each individual through a tailored process designed specifically for their purchase needs.

Better.com Review – Summary

In this review, you’ve learned more about the very foundations that make Better.com a different option than many other online lenders. That being said, the company is still a direct lender, which helps home buyers receive one-on-one support and guidance.

Using innovative technologies, Better.com is on a mission to transform the way that people buy homes in the United States. Not only does this expand mortgage loan and refinancing access to more people, but it also helps ensure satisfied customers at every turn.

If you’re ready to try out a new type of mortgage loan and refinancing process, Better.com could be the perfect way to start your journey. Get started on an application today!