Mortgages Rating Methodology 2024

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Table of Contents

The Forbes Advisor Philosophy How Forbes Advisor Rates Mortgage Lenders Star Ratings Methodology for Best Mortgage Lists Forbes Advisor Mortgages Editorial Team Why You Can Trust Our Mortgages Team

The Forbes Advisor Philosophy

Forbes Advisor strives to make smart financial decisions simple. We aim to help consumers achieve their personal financial goals providing them the knowledge and research to make the best financial decisions they can feel confident in.

We may earn a commission from partner links on Forbes Advisor, but the compensation we receive from advertisers does not influence the recommendations or advice our editorial team provides in content.

This methodology is only applicable to Forbes Advisor Mortgages content.

How Forbes Advisor Rates Mortgage Lenders

Mortgage Rates


	Mortgages rates we review We compare a lender’s advertised rates for 15-year and 30-year fixed mortgages to the national average as determined by Freddie Mac. For lenders lacking advertised rates, we compile rates using a universal borrower profile resembling the characteristics of an ideal buyer—such as a 20% down payment and excellent credit—purchasing a home at the current U.S. median sale price. Source: Freddie Mac Primary Mortgage Market Survey, U.S. Census Bureau and Forbes Advisor staff research
	Why it’s important to customers: Interest rates directly impact your monthly mortgage payment. Knowing which lender offers competitive interest rates is the first step to finding a home loan that suits your budget.

Mortgages rates we review

We compare a lender’s advertised rates for 15-year and 30-year fixed mortgages to the national average as determined by Freddie Mac. For lenders lacking advertised rates, we compile rates using a universal borrower profile resembling the characteristics of an ideal buyer—such as a 20% down payment and excellent credit—purchasing a home at the current U.S. median sale price.

Source: Freddie Mac Primary Mortgage Market Survey, U.S. Census Bureau and Forbes Advisor staff research

Why it’s important to customers: Interest rates directly impact your monthly mortgage payment. Knowing which lender offers competitive interest rates is the first step to finding a home loan that suits your budget.

Loan Options


	Loan options we review We review each lender’s loan offerings. Specifically, we ensure that lenders offer conventional mortgages with fixed and variable interest rates, jumbo loans and government-backed loans including FHA, VA and USDA loans. We also consider specialty or proprietary loan products. Source: Forbes Advisor staff research
	Why it’s important to customers: More loan options means more flexibility in choice. Lenders that provide a diverse range of mortgage products allow consumers to explore loans that work best with their budgets.

Loan options we review

We review each lender’s loan offerings. Specifically, we ensure that lenders offer conventional mortgages with fixed and variable interest rates, jumbo loans and government-backed loans including FHA, VA and USDA loans. We also consider specialty or proprietary loan products.

Source: Forbes Advisor staff research

Why it’s important to customers: More loan options means more flexibility in choice. Lenders that provide a diverse range of mortgage products allow consumers to explore loans that work best with their budgets.

Closing Timelines


	Closing timelines we review We consider the average closing timelines for both purchase and refinance mortgages. The fewer days to close, the better a lender scores. Source: Forbes Advisor staff research
	Why it’s important to customers: A lender that closes fast can help you win bidding wars and compete with cash buyers. Delays in the closing process can potentially mean losing out on your dream home.

Closing timelines we review

We consider the average closing timelines for both purchase and refinance mortgages. The fewer days to close, the better a lender scores.

Source: Forbes Advisor staff research

Why it’s important to customers: A lender that closes fast can help you win bidding wars and compete with cash buyers. Delays in the closing process can potentially mean losing out on your dream home.

Credit Score


	Credit scores we review We rate lenders, in part, based on their minimum credit score requirements and whether or not they consider alternative credit data. Borrowers are often encouraged to have a credit score of at least 620 to qualify for a mortgage. We give greater weight to lenders that offer government loans and/or conventional mortgages with lower credit score requirements. Source: Forbes Advisor staff research
	Why it’s important to customers: You may not be able to qualify for a mortgage if your credit score is too low. Lenders that offer flexible credit score requirements make getting a home loan more attainable for many.

Credit scores we review

We rate lenders, in part, based on their minimum credit score requirements and whether or not they consider alternative credit data. Borrowers are often encouraged to have a credit score of at least 620 to qualify for a mortgage. We give greater weight to lenders that offer government loans and/or conventional mortgages with lower credit score requirements.

Source: Forbes Advisor staff research

Why it’s important to customers: You may not be able to qualify for a mortgage if your credit score is too low. Lenders that offer flexible credit score requirements make getting a home loan more attainable for many.

Accessibility


	Accessibility factors we review We evaluate the accessibility of lenders, including the number of states they’re licensed in to offer mortgages and if borrowers can begin the preapproval process online. Source: Forbes Advisor staff research
	Why it’s important to consumers: Consumers can more easily access loan products from lenders that operate on a larger scale. These lenders also tend to have physical locations that consumers can visit for in-person support. Online accessibility is also a critical convenience feature for many and sometimes even a necessity for customers in rural areas with limited lender choices.

Accessibility factors we review

We evaluate the accessibility of lenders, including the number of states they’re licensed in to offer mortgages and if borrowers can begin the preapproval process online.

Source: Forbes Advisor staff research

Why it’s important to consumers: Consumers can more easily access loan products from lenders that operate on a larger scale. These lenders also tend to have physical locations that consumers can visit for in-person support. Online accessibility is also a critical convenience feature for many and sometimes even a necessity for customers in rural areas with limited lender choices.

Customer Service


	Customer service factors we review We value lenders with high marks in customer satisfaction. In addition to good consumer reviews across multiple sources, we grade lenders on other factors essential to the customer service experience, including whether or not they offer weekend support hours, a mobile app, an AI assistant or live chat support. Source: Consumer Financial Protection Bureau Consumer Complaint Database, Better Business Bureau and Trustpilot
	Why it’s important to consumers: Choosing a lender that offers attentive and efficient customer service, including answering questions, resolving issues on time and providing convenient operating hours, can help give borrowers peace of mind throughout the loan process.

Customer service factors we review

We value lenders with high marks in customer satisfaction. In addition to good consumer reviews across multiple sources, we grade lenders on other factors essential to the customer service experience, including whether or not they offer weekend support hours, a mobile app, an AI assistant or live chat support.

Source: Consumer Financial Protection Bureau Consumer Complaint Database, Better Business Bureau and Trustpilot

Why it’s important to consumers: Choosing a lender that offers attentive and efficient customer service, including answering questions, resolving issues on time and providing convenient operating hours, can help give borrowers peace of mind throughout the loan process.

Star Ratings Methodology for Best Mortgage Lists

Forbes Advisor rates mortgage lenders based on elements that have a meaningful impact on the cost of the mortgage, such as borrower requirements, loan options and interest rates. Each lender’s rating may vary across different articles, depending on the priorities of consumers searching for a lender in a particular category.

Best Mortgage Lenders

The best mortgage lenders we rate represent some of the largest mortgage lenders by volume, including banks, credit unions and online lenders. However, our methodology also allows us the flexibility to include small and midsized lenders. We consider the most common factors relevant to borrowers, including:

Interest rate. 20%
Accessibility. 20%
Customer service experience. 20%
Loan options. 15%
Time to close. 15%
Loan minimums. 10%
Bonus points. Up to 5% of the total score

Best Mortage Refinance Lenders

When reviewing the best mortgage refinance lenders, we look for lenders with competitive interest rates and a reputation for great customer service. Here’s how we rate these lenders:

Interest rate. 20%
Customer service experience. 20%
Credit score minimum requirements. 20%
Alternative credit data considered. 10%
Preapproval time. 10%
Closing timelines. 10%
Loan types. 10%

We also award bonus points up to 5% of the score if the lender offers discounts or rebates.

Best Mortgage Lenders for First-Time Home Buyers

When reviewing mortgage lenders for first-time home buyers, we understand prospective borrowers consider certain factors more carefully, so we look at lenders with reasonable:

Loan costs. 30%
Speed. 20%
Credit requirements. 20%
Loan types offered. 20%
Access and availability. 10%

We also award bonus points up to 5% of the score when a lender considers alternative credit data.

Best Jumbo Loan Lenders

For jumbo loan lenders, we strongly consider each lender’s maximum loan amount plus additional benefits it offers. We use the following criteria to rate these lenders:

Interest rate. 20%
Loan options. 20%
Time to close. 20%
Accessibility. 20%
Customer service experience. 20%

We award bonus points up to 25% of the overall score if a lender allows for a credit score below 700 on its jumbo loans, offers jumbo loans of $3 million or more, accepts alternative credit data when determining creditworthiness for its jumbo loans, offers rate discounts and/or maintains a fully online mortgage application process.

Forbes Advisor Mortgages Editorial Team

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Jordan Traver Forbes Advisor Senior Writer		Jordan Tarver has spent seven years covering mortgage, personal loan and business loan content for leading financial publications such as Forbes Advisor. He blends knowledge from his bachelor’s degree in business finance, his experience as a top performer in the mortgage industry and his entrepreneurial success to simplify complex financial topics. Jordan aims to make mortgages and loans understandable.
What inspires Jordan: Whenever I work on an article, I always try to imagine the person on the other side of the screen. I want to make sure I’m providing the information they need to make the best financial decision. That’s my driving force and inspiration.
Chris Jennings Forbes Advisor Editor		Chris Jennings brings over a decade of editorial experience in digital and print media, including eight years of specialized expertise in the personal finance and mortgage space. His work has been featured in leading financial publications nationwide. Chris strives to create content that empowers readers with the knowledge to make informed financial decisions and reach their goals.
What inspires Chris: Homeownership is one of the top financial goals for millions of Americans, but achieving that goal can be a convoluted and overwhelming process. Shopping for lenders, securing a favorable interest rate, exploring home-buyer incentives and setting a realistic budget are just a few variables in the mortgage process. This complexity motivates me to simplify challenging mortgage topics, making them accessible not only to first-time home buyers but also to experienced homeowners seeking clarity and confidence in their financial decisions.
Caroline Basile Forbes Advisor Editor		Caroline Basile is Forbes Advisor’s student loans and mortgages deputy editor. With experience in the mortgage industry and as a journalist, she was previously an editor with HousingWire, where she produced daily mortgage news and feature stories. She holds a degree in journalism from the University of North Texas.
What inspires Caroline: For many, buying a home is the largest purchase they’ll make. The process can be stressful and anxiety-driven—especially in the ever-evolving U.S. housing market and economy. This inspires me to deliver clear and understandable information so consumers can make the best decisions for their unique situations.
Kennedy Edgerton Forbes Advisor Editor		Kennedy Edgerton is an updates editor on the Mortgages & Loans team, leveraging his passion for writing and personal finance to produce stimulating content that empowers readers to enhance their lives through advised decision-making. Kennedy is a graduate of Morehouse College with a degree in Cinema, Television and Emerging Media Studies.
What inspires Kennedy: Making the right financial decisions can significantly impact our lives for years to come. For example, choosing the right mortgage lender can be the difference between paying off your loan and building wealth or selling your home in a competitive market to avoid bankruptcy. My mission is to use educational content to aid readers in their financial journeys and help prospective home buyers choose the best mortgage.

Why You Can Trust Our Mortgages Team

Our editors are committed to bringing you unbiased ratings and information. We use data-driven methodologies to evaluate mortgage products and lenders, providing insights on key features that reflect consumers’ top priorities when shopping for a mortgage. In addition to our meticulous research process, our articles undergo multiple levels of editing and fact-checking before publication.

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