No, Better Mortgage does not charge lender fees. That means no origination fees, no application fees, no processing fees, and no underwriting fees. For way too long, lenders charged hidden fees at every stage of the mortgage process.
We’re proud to differentiate ourselves from the competition.
Pro tip: If you’re not sure if a lender charges loan origination fees or not, make sure to look over your loan estimate thoroughly before you decide to move forward. By law, these fees must be disclosed in the “Loan Costs” section.
Wondering how Better Mortgage earns money if we don’t charge lender fees? It’s a question we get a lot, and the one sentence answer is: We make money by selling our loans to investors in the secondary market.
At Better Mortgage, we’ve developed relationships with over 25 of the largest mortgage investors in the world, from large banks to investment funds to government-sponsored entities like Fannie Mae. Most lenders only work with a handful of investors, which limits their ability to find the best buyer.
We then use our technology to match our borrowers with the investors who are most interested in buying their loans (and are therefore willing to pay a good price for them). This, in turn, allows us to offer such low rates to the borrower.
Furthermore, our technology goes beyond our investor-matching algorithm. We’ve also worked hard to streamline the entire mortgage process, so it’s cheaper for us to make the loan than a traditional lender. On average, our new homebuyers save $19,600 and customers who refinance save $7,300 over the life of their loans.*
Want to learn more? Check out the full article, “How does Better make money?”