- Transparent rate comparison
- High customer satisfaction ratings
loanDepot is an online mortgage lender that offers new home loans, refinancing, and government-backed mortgage programs. The firm is the brainchild of CEO Anthony Hsieh, who had a hand in creating other industry giants like E*TRADE Mortgage and LendingTree.
loanDepot offers rate comparisons against other mortgage companies, making it easier to find the best deal. Take note though – the comparisons assume a credit rating of 740 and a debt-to-income ratio of 35% or less.
Customer reviews are good, on the whole. That doesn’t mean there isn’t a handful of disgruntled clients, however the same can be said of almost any lender. loan Depot is a large company, so they have access to the major banks which makes them a very solid choice for a refinance. However, they have a very standard approach that allows them to do high-volume. This is a fine customer experience for a refi, but for a new mortgage, it means that they might not be able to give you the attention required for your particular situation and they might not have the lowest new mortgage rate. We recommend loanDepot specifically looking to refinance an existing mortgage.
- No online application/outdated website interface
- Fees may be higher than average
The loanDepot.com website is behind the times as far as high-tech lending is concerned. You must contact the company via phone or their online contact form. We will, however, add a caveat – the company is working to bring their interface into the 21st century, which is supposed to include a mobile app in addition to an updated website.
The other downside to this mortgage lender is that they leave themselves a considerable amount of breathing room in their origination fees. While the average is about 1%, loanDepot origination fees could be between 1% and 5%. The numbers could tip in your favor if the interest rate you’re offered is attractive enough, so it’s important to do the math before committing.
The bottom line – you should consider loanDepot if you have good credit, are looking to refinance, and want a variety of loan options from which to choose. This lender is also a good choice if you prefer a less technology-heavy approach (there are 180 local branches nationwide).
It’s worth noting that the answer to the question “Does loanDepot offer HELOC?” is no. The same is true for reverse mortgages. There are loanDepot.com home equity loans, however, which is unusual for a non-bank mortgage lender. Just be sure to do your due diligence in comparing the whole picture – interest rates along with other fees – when making a final decision.