LendingTree Mortgage Review 2020: Are They Worth it?
If you’re looking for a new loan, LendingTree Mortgage offers a platform for easily browse and compare similar financial products and loan terms from multiple lenders to get the best deal.
LendingTree is a free platform for online lending- not a direct lender. Instead of funding goods directly from home financing, it links you to partner after you fill out an online form.
What is LendingTree?
LendingTree is a website for comparison which helps you shop for financial products.
Whether you are searching for a home loan, credit card, life insurance, or anyone of a handful of other lending and insurance items, LendingTree helps you search and compare in one easy through various providers.
For certain cases, you can see deals from affiliated lenders or insurers almost immediately. you can save time shopping around by looking at several competing deals in one location.
You may as well be saving money. the businesses it shows in your comparison results pay Lendingtree and it doesn’t cost you a thing
Pros and Cons of LendingTree
Pros
- View multiple offers with one form — Instead of filling out forms at each company separately, you can fill out one form and get estimates and offers from multiple lenders.
- Compare rates in just a few minutes — It could take hours to call around or look at many different websites for rates. LendingTree grabs them all for you.
- No fee to use — LendingTree doesn’t cost anything extra. If you find a cheaper loan or insurance product, it saves you money.
- No obligation to buy — If your LendingTree results are not as good as what you find on your own, there is no obligation to use any suggested product from LendingTree.
Cons
- Possible unwanted calls and emails — Some people could keep getting calls or emails from some partners even after you make another decision. It may take a little time to unsubscribe or get the calls to stop.
- Not always the best rate — LendingTree gives you competitive rates, but not always the very best. It’s possible you could find a better deal outside of LendingTree’s partner network.
How Much does LendingTree Cost?
While LendingTree’s service is free to use, there will likely be fees associated with your home loan. These fees vary by lender but often include an origination fee and prepayment fees.
A good rule of thumb is to budget at least 0.5% to 1% of the amount you borrow for the loan origination fee.
Depending on your lender, you may also need to pay:
- Application fee
- Origination fee
- Underwriting fee
- Rate lock fee
- Ongoing fees
- Prepayment fees
- Third-party fees
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LendingTree Mortgage Qualifications
Credit Score
You’ll generally need a credit score of at least 620, though a higher credit score will be required by some mortgage providers you may be matched with.
Downpayment
Your down payment will depend on what type of loan you choose. For example, VA loans are available with $0 down, but you may need anywhere from 5% to 20% for some conventional and jumbo loans.
Mortgage Options with LendingTree
Conventional Mortgages
According to the lender, conventional loans will have a broad range of terms and conditions. Normally there would be a choice to choose from fixed-rate or adjustable-rate mortgages (ARM).
A fixed-rate loan will usually have higher interest rates, but repayments will remain constant over the term of the loan.
An ARM may start with a reduced interest-rate, but repayments will be subject to any fluctuations in the market.
A Fixed-rate mortgage may incur penalties if you try to cash out early, so if you think you may sell your home before the end of your mortgage term, an ARM might be the better option for you.
FHA Loans
LendingTree allows borrowers to compare offers for government-backed FHA loans through its website. FHA loans come with less stringent credit requirements and down payments as low as 3.5%, which makes accessing a mortgage more accessible for some borrowers.
Be aware that FHA loans are often accompanied by a lot of paperwork and higher ongoing fees as a result of the insurance premiums required to secure them.
While FHA loans are a good option for those who might otherwise have difficulty accessing a home loan, this form of mortgage is not for everyone.
VA Loans
VA loans are available to military service members, veterans and some military spouses with $0 down.
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Jumbo Loans
Jumbo loans are any loan over $484,350. This is the current conforming loan limit for areas where property value is average as set by the Federal Housing Finance Agency (FHFA).
In areas with higher than average property values, anything under $726,525 will still be considered a conventional loan.
Jumbo loans usually require a higher downpayment, a higher credit score, and can sometimes incur higher interest rates.
In some cases, private mortgage insurance will be required to secure a jumbo loan due to the high amount of the loan.
Other Mortgage Types
Because LendingTree connects you with lenders, and is not a direct lender, you may be able to find a lender for other mortgage types, including
- Reverse mortgages
- Home equity loans & lines of credit
- USDA loans
- Investment property mortgages
Is LendingTree a Good Choice?
In all honestly, LendingTree has survive with a minimum of controversy for almost 20 years. if you’re looking for a one-stop loan or credit shopping and have a decent or better credit score, LendingTree seems to be a convenient way to get multiple bids from lenders.
It may be easier to get a personal loan or other types of credit from LendingTree than it is from a bank, but you’ll expect to pay a higher APR for this greater acceptance rate.
LendingTree fees will cost you money one way or another, and you may feel harassed by lender spam.
LendingTree is a user-friendly aggregator for financial goods. Any quote you’re looking for can possibly be found on LendingTree.
