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Freedom Mortgage Review

Friday, August 12th

2022 Mortgage Refinance Company Reviews

Freedom Mortgage Review 2 Star Rating

Freedom Mortgage

2 Star Rating

Freedom Mortgage has been in the mortgage refinancing and other home loans industry for over 30 years. They serve all 50 states, as well as Washington DC, USVI and Puerto Rico, with more than one million active borrowers.

All Types Of Refinances Supported

When it comes to refinanced mortgages, this lender offers all types: primary, secondary, and investment homes, fixed rate and adjustable rate, and both traditional and cash-out refinancing. To get started, you'll provide the basic information of the type of refi you're looking for, plus your name and contact information.

Wait For A Phone Call

Unfortunately, from that point onward, you'll be waiting for a Freedom Mortgage representative to contact you. Unlike most of their competitors, this company doesn't even give you a peek at what your rates might be, the terms they offer, and so on.

Not As Convenient

For most borrowers looking to refinance their mortgage online, this is a huge downside - why not just go with a local mortgage broker if you're going to have to talk with a representative over the phone anyway? It's definitely a minus for Freedom, when considering all of the options out there that make it a breeze to see rates and terms with just a few steps.

Helpful Checklist Feature

Something they offer that we found helpful was the Checklists feature under the Resources heading. Whether you do a mortgage refinance online or through a more traditional route, you'll need to have lots of documentation at the ready: pay stubs, two years of W-2 forms and federal tax returns, and more. You can use Freedom Mortgage's suggestions to gather the paperwork you'll need - even if you decide to work with a different lender for your refi.

Calculator Tools

You can also get useful information from the Calculators heading. Not sure if you should refi into a 30- or 15-year mortgage? Want to know how much you'd save at today's rates, or when your break-even point would be (when you would recoup the money you'll spend on fees to refinance)? You can use those tools without committing to Freedom Mortgage as your lender.

$2 Million Penalty

How about reputation? According to the Better Business Bureau, Freedom Mortgage is accredited and has a rating of "A-". Those are usually good signs, but there was also a case against the company brought by the Consumer Financial Protection Bureau in 2019. Freedom wound up paying a penalty of nearly $2 million for intentionally recording inaccurate information about mortgage applicants' ethnicity, race and gender for three years. In addition to the 1000+ complaints filed with the BBB, that doesn't give the impression that Freedom Mortgage is fully committed to integrity in their business dealings - or to their customers. Yes, you'll find dozens of 5-star reviews on their own website, along with the disclaimer that they have been "screened...prior to publication". That screams "filtered" to us.

Online Experiences Are Better

If you're trying to refinance your mortgage and are more comfortable doing it in an "old school" way, Freedom Mortgage might be worth contacting. But, if you're like most homeowners, you probably want as much information as possible from the very start, including ballpark estimates of your rates, terms, and fees - and in that case, you'll likely prefer the online mortgage refi experience with one of the higher-ranked providers in our review.

Where is the Best Place to Refinance Your Mortgage?

While it might be tempting to go with a local mortgage broker or even your community bank, you're not likely to get the lowest rates or ideal terms that way. Why? They usually work with their preferred partners instead of negotiating or "comparison shopping" to get you the best deal. You're paying for convenience and familiarity, but that's it. Fortunately, there are many reputable online lenders that make it quick and easy to get low rates and great terms, all from your laptop or even your mobile phone!

With interest rates at historic lows, it's worth your while to consider mortgage refinancing. Whether you want to shave years off your current mortgage and lower your interest rate or get cash out from your established equity, there's no better time than now. Using an online lender lets you compare rates, complete the application, and finish the entire process without ever leaving home: some services send a mobile notary to you for the final steps of signing the paperwork! Otherwise, you can often choose a local title company if you prefer to go the more traditional route.

The Best Mortgage Refinance Companies Compare Mortgage Refinance Companies Compare Mortgage Refinance Company Reviews What are the best Mortgage Refinance Companies Best Mortgage Refinance Company Reviews

Mortgage Refinance Company FAQ

When you refinance your mortgage, you essentially take out a new loan on your current home. Your new lender pays off your balance with your previous lender, and you start a new mortgage. It sounds complicated, but the average homeowner refinances their mortgage every four years!
A refinance could be a great opportunity under several conditions. These include a significant reduction in your interest rate, minimizing risk by changing from an adjustable rate mortgage (ARM) to a fixed rate loan, or reducing the length of your mortgage (e.g from a 30-year fixed to a 15-year fixed).
There are three situations where it probably doesn't make sense to refinance. If you've had your current mortgage for a long time, most of your payments are now going towards the principal instead of interest; a refinance will put you back to paying more towards interest and cost you more money. Or, if your current mortgage has a prepayment penalty and the lender isn't willing to waive it, you could spend more in fees than you'll save by refinancing. Finally, if you're planning to move in the near future, you might not recoup the closing costs you'll pay to refinance before it comes time to sell your home.
A cash-out refinance lets you borrow against the equity you have built up in your home. Some people do a cash-out refinance to consolidate debts at a lower interest rate, to pay for college, or to remodel their home.
Absolutely. There are some highly-rated lenders whose primary focus is online home loans, both first mortgages and refinancing. Because these lenders often have less overhead than a local mortgage broker or bank, you may get lower interest rates and be able to negotiate on some of the fees to get the best possible terms.
You'll want to run the numbers to see if it makes sense for you. Will you be in the home long enough to recoup what you've paid in points to spend less on interest? Will it make a big enough difference in your monthly payments? Do you have the cash on hand or will you have to roll the cost of the points into the mortgage itself? The decision is ultimately yours, but do the math to see if it's a good option first.
Remember all of the paperwork it took when you got your current mortgage? Expect a refinance to be very similar. You'll have to provide proof of income and homeowner's insurance coverage, bank statements, and so forth. Your home will probably need a new appraisal, and you might have to dig up your documents from the first closing, like the property survey. The process will involve a hard pull on your credit, so don't be alarmed if you see your score dip temporarily.
That depends on how quickly you provide the required documentation, how fast your lender processes it, and several other factors. You can expect an estimated time to close ranging from 30-60 days.
Compare the Best Reviews

Continued from above...

Not all online mortgage refinancing providers work the same. While some operate more like a regular bank, funding your loan themselves, others act as a referral service so that you can compare rates and offers from multiple lenders at once. Whichever site you choose, don't be afraid to take the quote you receive and ask other lenders to compete for your business! Some of the fees charged in the refi process are negotiable, so why not see who can give you the absolute best loan terms?

As you start the process of refinancing your mortgage, keep in mind the following criteria for each lender or service you're considering:

  • Reputation. What do other homeowners say about the company and the process of refinancing a mortgage? Is the service rated and accredited by the Better Business Bureau?
  • Ease of Use. Does the site make it easy to apply, to get information about refinancing in general, and ultimately to close on your refi? Will you get multiple quotes from different lenders that you'll have to vet on your own? Is it difficult to get help if you have a question?
  • Transparency. How much can you find out without having to give your personal information? Does the service give you ample details upfront about their rates, terms and fees?

TopConsumerReviews.com has reviewed and ranked the best services for mortgage refinancing available today. We hope this information saves you money by helping you find the best rates and terms when you refinance your mortgage!

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