September 19, 2021

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Newrez Mortgage Review for 2021

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, SEO, Wordpress Support & Insurance, Mortgage, Loans, Legal, Etc Blogs
, SEO, Wordpress Support & Insurance, Mortgage, Loans, Legal, Etc Blogs

Overview

Newrez LLC, originally called New Penn Financial, is a direct mortgage lender that offers a multitude of flexible home loan solutions to make homeownership a reality for its customers.

Founded in 2008, Newrez is a nationwide mortgage lender with licenses in all 50 states and Washington, D.C.

It offers traditional loan products such as conventional and government-backed loans, as well as flexible non-qualified mortgages (non-QM loans) for borrowers with unique circumstances.

Since Newrez only has branches in select states, it uses technology to streamline and simplify the loan application process for remote borrowers.


Newrez mortgage rates 

A lower mortgage rate can boost your buying power, help you get more house for your money, and reduce your mortgage payments. 

Interest rates vary from lender to lender, though, so it’s important to shop around and compare rates.

In 2020, average Newrez mortgage rates (for a 30-year term) were on par with or slightly lower than some major competitors. However, mortgage rates can vary a lot from one homeowner to the next.

Average 30-year mortgage rates at major lenders 

  Newrez  Rocket Mortgage Wells Fargo  Freedom Mortgage
Average 30-Year Interest Rate, 20201 3.20% 3.20% 3.62% 2.92%
Median Total Loan Costs, 2020 $3,890 $4,610 $3,370 $3,340
Median Origination Fee, 2020 $1,300 $2,950 $1,280 $0

Newrez doesn’t advertise current interest rates on its website. To get a mortgage quote, you’ll need to complete a loan request and speak with a mortgage loan advisor. 

Average rate and fee data sourced from public rate and fee records required by the Home Mortgage Disclosure Act (HMDA).

Verify your new rate (Aug 4th, 2021)

Newrez mortgage review for 2021

Plenty of banks, credit unions, and mortgage companies offer home loans. But not every financial institution has solutions for every buyer. 

What’s unique about Newrez is that along with conventional and government-backed loans, it has other, specialized products to accommodate borrowers.

Newrez’s non-qualified mortgage (non-QM) loans are designed to help people with outside-the-box applications, such as:

  • Self-employed borrowers wanting bank statement loans
  • Real estate investors
  • Borrowers with past credit blemishes

Non-QM loans can help these individuals get approved using alternative documentation to verify income. And these programs may have flexible credit guidelines as well. 

Newrez loans are also unique because of their customizable loan terms. 

While some lenders only offer 15-, 20-, or 30-year mortgages, a Newrez mortgage can have a non-traditional term of 18, 23, or 27 years. The lender also has manufactured home loans and loans for real estate investors.

Working with Newrez

When shopping for a home loan, visiting a lender’s website for rate information is often the first step in the process. But since Newrez doesn’t openly advertise its rates online, you can only get this information from a loan advisor. 

To get started, complete an application either online or via the lender’s mobile app. Specify whether you’re interested in purchasing or refinancing, and then provide personal and income information. 

Once you’ve complete the application, you can use the lender’s online portal to upload your supporting documentation. This will include your most recent tax returns (two years), paycheck stubs, and bank/investment statements.

Once you’ve started an application, a Newrez loan advisor will be in touch to discuss your mortgage options.

Newrez customer service reviews

Newrez wasn’t included in J.D. Power’s 2020 Mortgage Origination Satisfaction Study. And unfortunately, its limited customer reviews don’t paint the best first impression. 

Newrez receives a ranking of 2.5 out of 5 on Trustpilot (based on 4 reviews) and scores 3 out of five stars on LendingTree. 

On the bright side, Newrez did not receive any customer complaints to the Consumer Financial Protection Bureau in 2020, according to the CFPB database.

Customer service at major lenders 

  CFPB Complaints, 20204  Complaints Per 100 Mortgages, 20205 JD Power Satisfaction Score, 20206
Newrez 0 0.00 Not Rated
Quicken Loans 391 0.03 883/1,000
Wells Fargo 554 0.05 840/1,000
Freedom Mortgage  288  0.04  817/1,000

Customers who had a positive lending experience were mostly satisfied with their interest rates and loan fees. Others complained about poor customer service and poor responsiveness.

Of course, the experience will be different for every applicant depending on the type of loan they need, their location, and the loan officer they’re paired with.

So if you like the rate and fees Newrez can offer you, it’s worth taking a closer look to see what you make of its customer service for yourself.

Mortgage loan products at Newrez

Newrez has a comprehensive range of mortgage programs for new purchases and refinances, with options for first-time homebuyers, repeat buyers, and those looking for low-down-payment loans. 

Here’s a list of mortgage options available at Newrez:

  • Conventional loan — Fixed-rate and adjustable-rate home loans with down payments as low as 3%. Available fixed-rate mortgage terms include 10, 15, 20, 25, or 30 years. You’ll need a minimum credit score of 660 to qualify. You can also use conventional financing to buy a 2- to 4-unit property or a manufactured home
  • FHA loan — These government-backed loans require a 3.5% down payment and a minimum credit score of 580. You can use FHA financing for primary residences, including fixer-upper homes or manufactured homes
  • USDA loan — These no-down-payment loans require a minimum credit score of 680 at Newrez. To qualify, you must have low-to-moderate income and purchase a property in an eligible rural area
  • VA loan — VA home loans also require no money down, but you’ll need a minimum credit score of 660 to qualify with Newrez. Financing is available to active-duty military members, veterans, National Guard service members, Reservists, and eligible spouses. Current VA homeowners can get a lower rate using a VA Streamline Refinance
  • Jumbo loans — These loans exceed the conforming loan limit for an area, allowing buyers to borrow into the millions for a home purchase or refi. Jumbo loans typically require a minimum 700 credit score and a 20% down payment

This company is an option for home buyers as well as current homeowners who want to refinance.

Refinancing involves applying for a new mortgage to replace an existing one. It can reduce your mortgage rate and monthly payment, and modify other terms of your original loan.

Unfortunately, Newrez doesn’t offer home equity loans or home equity lines of credit (HELOCs). A cash-out refinance is the only option if you’re interested in pulling cash from your equity.

Where can you get a mortgage with Newrez?

Headquartered in Fort Washington, Pennsylvania, Newrez has over 100 branch locations with licenses in all 50 states and D.C. 

States with physical Newrez branches include: 

  • AL, AR, AZ, CA, DC, FL, HI, MD, MO, MS, NC, NH, NV, NY, OH, PA, SC, TN, TX, and WI

If you live outside a branch area you can apply online, upload documents to the lender’s secured portal, and receive your documents and closing package electronically for e-signing.

Is Newrez the best mortgage lender for you?

Newrez is worth considering if you’re mostly interested in a low interest rate and competitive loan fees. It may also be a good match if you have unique circumstances and require alternative document verification. 

This flexibility can help you qualify for a loan if you’re a self-employed borrower, have credit blemishes, or if you need a manufactured or investor loan. 

But while Newrez offers multiple loan options, the customer experience may be a bit lacking based on online reviews.  

Regardless of your circumstances, you should compare at least 3-5 mortgage quotes before choosing a company for your home purchase or refinance. Interest rates can vary a lot by mortgage lender and by borrower, so you won’t know who can offer you the best deal until you’ve seen personalized loan estimates.

Ready to shop for your best mortgage rate? You can get started right here.

Verify your new rate (Aug 4th, 2021)

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