Best Mortgage Lenders of August 2023
- Expertise: Mortgage, personal finance, financial literacy, debt management and real estate investing
- Education: University of Arizona
Denny Ceizyk has been a senior writer covering LendingTree’s mortgage content since 2019; he has covered the mortgage industry since 2007. Besides writing home loan articles for LendingTree, Denny contributes expert commentary for national publications including MarketWatch, the New York Post, AARP, Realtor.com and Money magazine.
Before joining LendingTree, Denny spent 25 years in the mortgage industry advocating for and educating homeowners to help them make the best mortgage decisions. He has worked in the institutional mortgage banking world, having owned and operated a mortgage brokerage company for 18 years.
Denny earned a bachelor’s degree in media arts from the University of Arizona and has advocated for financial literacy initiatives at both the state and local government level over the past 30 years.
- Expertise: Mortgages, homebuying, housing market, personal finance
- Education: University of Georgia
Crissinda Ponder is the mortgage managing editor at LendingTree, where she develops and maintains a range of content related to residential mortgage lending and the homebuying process. Prior to her current role, she served as a senior mortgage writer at LendingTree.
Her background includes serving as a content editor — focused on personal finance and higher education content — with ABUV Media (MoneyGeek.com, HigherEducation.com), and as both a mortgage reporter/analyst and insurance reporter/analyst for Bankrate.com. She has also served as a contributing writer for TheBalance.com, producing content for the site’s mortgage, insurance and savings verticals.
Crissinda earned her B.A. degree in journalism from the Grady College of Journalism and Mass Communication at the University of Georgia.
There’s no one-size-fits-all when it comes to choosing a mortgage. The best mortgage lenders vary depending on your home loan needs. You may prefer an all-digital loan experience or need a special home loan program. LendingTree considered a number of factors to pick the best mortgage lenders of August 2023.
- Summary: The best mortgage lenders of August 2023
- Best for refinance loans: Guaranteed Rate
- Best for VA loans: Rocket Mortgage
- Best for jumbo loans: Ally Bank
- Best overall online mortgage experience: Zillow Home Loans
- Best for FHA loans: AmeriSave Mortgage
- Best for home equity loans: BMO Harris
- Best overall mortgage loan variety: Fairway Independent Mortgage
- How we chose our picks for the best mortgage lenders of July 2023
- Current mortgage rates
- Frequently asked questions
Summary: The best mortgage lenders of August 2023
| Lender | LendingTree rating and “best of” category | Lender review |
|---|---|---|
 |  Best for refinance loans | Read our review |
 | Best for VA loans | Read our review |
 | Best for jumbo loans | Read our review |
 |  Best online mortgage experience | Read our review |
 | Best for FHA loans | Read our review |
 | Best for home equity loans | Read our review |
 |  Best overall mortgage loan variety | Read our review |
Best for refinance loans: Guaranteed Rate
- Minimum credit score: Not published
- Available refinance programs: Conventional cash-out refinance, FHA refinance, VA cash-out refinance, VA IRRRL, FHA 203(k) renovation refinance, Fannie Mae HomeStyle® and Freddie Mac renovation refinance and VA renovation refinance
- Additional loan products: Jumbo loans, interest-only mortgages and home equity loans
- LendingTree rating:
Best for VA loans: Rocket Mortgage
- Minimum credit score (VA loans): 580
- Available VA loan programs: Purchase, streamline refinance (IRRRL), cash-out refinance
- Additional loan products: Conventional, FHA, jumbo, home equity loans
- LendingTree rating:
Best for jumbo loans: Ally Bank
- Minimum credit score (jumbo loans): Not disclosed
- Minimum down payment (jumbo loans): 10%
- Maximum jumbo loan amount: $4 million
- Additional loan products: Conventional
- LendingTree rating:
Best overall online mortgage experience: Zillow Home Loans
- Minimum credit score: 620
- Available programs: Conventional, FHA, VA and jumbo
- LendingTree rating:
Best for FHA loans: AmeriSave Mortgage
- Minimum credit score (FHA loans): 600
- Minimum down payment (FHA loans): 3.5%
- Available FHA loan programs: Purchase, streamline refinance, cash-out refinance
- Additional loan products: Conventional, VA, USDA, jumbo
- LendingTree rating:
Best for home equity loans: BMO Harris
- Minimum credit score: 580 to 620
- Available home equity loan terms: 5, 10, 15 and 20 years
- Available HELOC loan terms: 20 years
- Additional loan products: Conventional, FHA, jumbo
- LendingTree rating:
Best overall mortgage loan variety: Fairway Independent Mortgage
- Minimum credit score: 580 to 620
- Available loan programs: Purchase and refinance programs offered for conventional, FHA, VA, jumbo and USDA loans. Fixer-upper loans, which include the FHA 203(k) program, Fannie Mae HomeStyle® Renovation loans and VA and USDA renovation loans.
- Additional loan products: Reverse mortgage and physician home loans
- LendingTree rating:
How we chose our picks for the best mortgage lenders of August 2023
We reviewed data collected from 35 lender reviews completed by the LendingTree editorial staff to determine the best mortgage lenders in each category chosen in this roundup. It includes winners in the best overall categories awarded to lenders in our FHA, VA, home equity, refinance and jumbo “best of” roundups.
To determine the best overall loan variety category winner, we tallied the total number of standard and special loan programs offered by each individual lender.
Each lender is given a score between zero and five stars based on several features including digital application processes, available loan products and the accessibility of product and lending information. To evaluate the best mortgage-specific factors, we chose lenders that won the best overall categories in the refinance, FHA, VA, home equity and jumbo roundups we completed.
To be included in the “best of” roundup, lenders must offer mortgages in at least 35 states.
Current mortgage rates
The mortgage interest rates forecast for August 2023 is for rates to drop gradually, unless inflation or the economy start heating up again. The Fed has indicated it may raise rates two more times this year, although the increases will be smaller than previous hikes.
Despite the lower rate predictions, high home prices and high rates are keeping homebuyer and homeowner refinance plans on the sidelines. A lack of supply and persistently steep home prices are making it hard for many would-be homebuyers, according to Jacob Channel, senior economist for Lendingtree.
And even though rates are likely to drop for the remainder of the year, and into 2024, Channel said homeowners shouldn’t expect rates anywhere close to pandemic-level ranges. If the Fed announces an official end to the rate hike campaign of the past year, Channel said rates will likely bottom out between 6% and 6.5%.
Frequently asked questions
A mortgage is a contract that allows you to borrow money secured by your home as long as you agree to repay it at the terms agreed to in writing. Your home is collateral for the loan, which means the lender can take your home through foreclosure if you don’t pay your loan as promised.
Once you receive your mortgage funds to buy a home, the monthly payments kick in. Here’s how a mortgage works:
- Each month you pay principal and interest. The principal is the portion that reduces your loan balance every month. Interest is the mortgage rate charged by the lender for the life of the loan.
- At first, you pay more interest than principal. The interest you pay each month is based on how much you owe, which means the interest charges are the highest at the beginning of the loan term (your “loan term” refers to how many years you’ll have the mortgage).
- Over time, you pay more principal than interest. Through a process known as “amortization,” your loan balance begins to shrink faster and you pay less in interest.
- Once your loan balance is paid off, the mortgage is released. When you pay off a mortgage, the lender no longer has any legal right to your home. When you sell your home, you pay off any remaining mortgage balance.
Most of our best mortgage lender categories are tied to specific types of mortgages. Picking a program that matches your financial situation will improve your mortgage process experience.
| Mortgage type | Who it’s best for |
|---|---|
| Conventional loan | Borrowers with credit scores of 620, and a 3% down payment. No mortgage insurance with a 20% down payment Harder to qualify for than government-backed loans |
| FHA loan | Homebuyers with credit scores as low as 580 with a 3.5% down payment. Borrowers with credit scores as low as 500 may be eligible with a 10% down payment Requires expensive FHA mortgage insurance regardless of the down payment amount |
| VA loan | Military borrowers who don’t want to make a down payment to buy a home No mortgage insurance is required regardless of the down payment amount May require a funding fee worth 1.4% to 3.6% of the loan amount |
| USDA loan | Rural homebuyers with low incomes and no down payment funds May qualify with the income of household members even if they're not on the loan Must choose a property in a USDA-approved neighborhood |
| Jumbo loan | Buyers that need a loan amount above the current conforming loan limit of $726,250. Can take out a loan amount for homes in expensive parts of the country Stricter qualifying guidelines with higher down payment and credit score requirements |
| Home equity loans and HELOCs | Borrowers that want to tap their home equity and leave their first mortgage alone Can borrow more equity than most cash-out refinance programs allow Rates are typically higher with more stringent minimum standards |
Lenders typically ask for the following to vet your income, employment history, credit history and savings before approving you for a mortgage:
- Current pay stubs, W-2s and your last two years of employment
- A credit report with scores from at least three credit bureaus
- Proof you have the funds for the down payment and closing costs
- Verification that your new mortgage payment plus all your other monthly debt is no more than 50% of your monthly before-tax income [known as your debt-to-income (DTI) ratio]
- A home appraisal to verify the value of the home you’re buying
If your documents meet the lender’s minimum mortgage standards, you’ll sign closing documents, receive your mortgage money and become a homeowner.
The key to finding the best mortgage lender is to shop around. Collect at least three loan estimates from different types of mortgage companies, including mortgage brokers, mortgage banks and retail banks.
Mortgage brokers work with multiple lenders to tailor loans to fit income or credit histories that may not meet the strict underwriting standards set by retail banks. Mortgage banks typically handle your mortgage from application to funding all under one roof, making the mortgage process a little more predictable. Retail banks may offer you closing cost incentives if you carry large deposits or set up auto payments for your mortgage.
Always compare quotes on the same day — like stock prices, mortgage rates change daily.