Finance of America Mortgage Review 2021
Finance of America is a Horsham, Pa., Mortgage lender serving all 50 states.
We have named Finance of America one of the top mortgage lenders of 2021 because it offers a wide choice of loans and strong customer service. The company funded more than 53,000 loans in 2019, but only impressively racked up 14 complaints to the Consumer Financial Protection Bureau during that time.
But the biggest downside of this lender is that borrowers cannot easily apply for a loan online directly through the Finance of America website. You can start a prequalification form, but you will need to complete the process with one of the lender’s loan officers over the phone or in person at over 400 local branches across the country.
However, Finance of America technically accepts online mortgage applications through Lending.com, which is a separate website that it owns and operates under a different name. But that’s not clear to someone starting their search on the Finance of America website.
Pros and Cons of the Finance of America Mortgage
Works in all 50 states
Offers a wide choice of mortgages
Offers real estate investment loans and student loan refinances
Mortgage rates and the fees are not available on the lender’s website
Borrowers cannot apply for a loan online directly on the Finance of America website
Finance of America Mortgage: Types of Loans and Products
Finance of America offers just about every type of mortgage loan you can think of, as well as home equity lines of credit and student loan refinancing. Here’s what’s on the lender’s lineup right now:
Finance of America offers the choice between fixed rate and adjustable rate mortgage (ARM) on most of its products. With an ARM, your interest rate will be fixed for a certain period of time, usually between five and 10 years. After the end of the fixed period, the rate may increase or decrease once a year for the remainder of the loan term.
If you need to borrow a large amount, Finance of America can finance giant mortgages up to $ 4 million for eligible borrowers.
Finance of America Mortgage Transparency
If you’re looking for Finance of America mortgage rate and fee information, you won’t find it on the lender’s website. While Finance of America offers several mortgage calculators, guides explaining the home buying process, and pages dedicated to finding the right loan for your situation, the website has few details on what borrowers might pay. when closing a loan. A lot of information is confusing and not organized in an intuitive or clear way.
You will also not be able to submit a mortgage application through the website. Instead, you’ll either need to complete a prequalification form on the website, call a loan officer, or visit a branch in person.
Finance of America Mortgage Rates and Fees
Finance of America doesn’t advertise every day mortgage rates, nor does it publish a list of lender fees, such as points of call and closing costs on its website To find out the details of the loan costs, you will have to submit a mortgage application or request a prequalification.
We’ve got a list of closing costs a typical borrower could pay with a 30-year fixed rate home loan:
- $ 550 lender fee
- Assessment fee of $ 475
- Third Party Fee of $ 190
- Title insurance and state registration fees (these may vary)
Finance of America does not charge any prepayment penalties on any of its loans, and you can lock in a mortgage rate for up to 85 days for free. But there is a charge if you need to extend your rate foreclosure.
The minimum credit score required by Finance of America is based on the type of loan you want to take out. For example, you will need a credit score of at least 620 with a conventional loan and 580 for an FHA loan.
While you may qualify with the minimum credit score, you may need good to excellent credit to get the best mortgage rates. If you have fair or poor credit, consider hitting the “pause” button on your home search and focusing on improve your credit score.
Refinancing with Finance of America Mortgage
If you have an existing mortgage and want to get a lower interest rate or borrow money, you can refinance your loan through Finance of America. To apply, you will first need to call a local loan officer or visit a branch near you. The loan officer will withdraw your credit, ask for income and employment documents, and ask questions about your current mortgage. If you are approved, the lender will provide you with your interest rate and a breakdown of closing costs.
Some of these costs include:
- Registration fees
- Title insurance
- Lender’s legal fees
- Loan origination fees
- Other administrative costs
- Assessment fees
You can minimize your upfront expenses by asking your loan officer to roll up closing costs in the mortgage. While convenient, keep in mind that you will be paying more in the long run as you will end up paying interest on closing costs.
Finance of America Mortgage vs. Other Mortgage Lenders
|America’s Finance||Independent Fairway||SoFi|
|Minimum credit score||620 for conventional loans; 580 for FHA loans||620 for conventional loans; 660 for jumbo loans; 600 for FHA loans; 600 for VA loans||660|
|Minimum deposit||0% to 3.5%||0% to 5%||5%|
|Where does the lender operate?||50 states||50 states||42 states|
|Main types of loans||Conventional, Jumbo, VA, FHA, USDA, Various Home Improvement Loans, Variable Rate, Fixed Rate, Refinance, Reverse Mortgages, Home Equity Lines of Credit, Business Loans||Conventional, Jumbo, VA, FHA, USDA, Various Home Improvement Loans, Variable Rate, Fixed Rate, Refinance, Refinance With Withdrawal, Reverse Mortgages, Home Equity Loans, Home Equity Lines of Credit||Conventional loans|
How to Shop for the Best Mortgage Rate
The best way to save money on your home loan is to shop around. While it might take a few extra hours, the payoff is well worth it.
Each lender has their own way of setting mortgage rates, but you may need good to excellent credit to qualify for the loan. best rates. So if your credit is average or bad, consider putting your home search on hold for a few months and working on your credit. Once you see an improvement, you could qualify for a lower mortgage rate and save money on your mortgage payments.
First of all, find mortgage lenders who have a reputation for providing good customer service and low costs. Then apply for a mortgage with at least three lenders and apply for a Mortgage loan estimate. This document explains all of the costs involved in your mortgage, so you can use it to compare all of your loan offers.
Once you’ve identified the best deal, send it to another lender and ask if they can beat the interest rate or give you discounts on some of the lender’s fees. This simple step can save you hundreds or thousands of dollars over the life of the loan.
While these mortgage loan applications can trigger serious inquiries on your credit reports, the impact could be minor. Credit rating companies know consumers shop, so they typically treat all mortgage applications made within a short period of time (typically four to six weeks) as one application. Try to submit your mortgage applications in a small window to minimize the impact on your credit.
While you might not get a lot of information from the Finance of America website, you can call a loan officer or visit a branch in person for help and apply for a loan. The lender offers a wide selection of mortgages and good customer service. With so many options, you are bound to find a loan that meets your needs.