Our experts answer readers' home-buying questions and write unbiased product reviews (here's how we assess mortgages). In some cases, we receive a commission from our partners; however, our opinions are our own.
Better Mortgage: Overall Lender Rating
| Feature | Insider rating (out of 5) |
| Loan types | 3 |
| Affordability | 4 |
| Customer satisfaction | 3.86 |
| Trustworthiness | 4.5 |
| Total | 3.83 |
Better Mortgage: Pros and Cons
| Pros | Cons |
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Better Mortgage Interest Rates and Fees
On Better Mortgage's website, navigate to the "Rates" page and select purchase or refinance rates to see sample interest rates based on your zip code.
This probably won't be exactly the rate you'll end up paying, but it should give you an idea. And not all online lenders give you ways to see customized rates.
To get a more accurate rate quote, you'll have to provide some contact information to get a basic preapproval letter. This doesn't require a hard credit check.
In 2022, the average borrower getting a conforming mortgage from this lender paid $6,040 in origination charges, according to Home Mortgage Disclosure Act data. This is somewhat high compared to other lenders.
Compare Better Mortgage to Other Mortgage Lenders
Better Mortgage vs. Rocket Mortgage
Rocket Mortgage and Better Mortgage both offer the same types of mortgages, so which one is right for you may depend on which one can offer you a better deal or the type of experience you're looking for.
Do you want a unique term length? Rocket Mortgage offers terms as short as eight years, while Better Mortgage has more traditional options of 15, 20, and 30 years.
Rocket Mortgage also earned the No. 1 spot in J.D. Power's 2022 US Mortgage Origination Satisfaction Study, so it may be a good option if customer service is important to you.
Better Mortgage vs. Guild Mortgage
Guild Mortgage has more mortgage options than Better Mortgage, so Guild might be a better choice if you want a large number of options to choose from, or if you need a more unique type of mortgage.
Guild Mortgage's Complete Rate program also lets you use non-traditional credit (such as rent or utility payment history) to apply if you're a first-time homebuyer with no traditional credit score.
But you may prefer Better's fast, completely-online process, which includes live online support.
How Better Mortgage Works
Better Mortgage is an online mortgage lender that is available in all 50 US states and Washington, DC. You can't use Better to buy homes in Puerto Rico or anywhere outside of the US.
The company offers conventional mortgages — both conforming and jumbo — and government-backed mortgages, including FHA loans and VA loans. It also offers HELOCs.
Better offers two different types of preapproval letters. The first is a basic preapproval letter, which utilizes a soft credit pull and information you provide to determine whether you qualify and how much you can borrow. Its verified preapproval letter, on the other hand, provides more certainty because it requires you to upload documents verifying your financial situation.
If you're getting ready to start making offers on houses, it's better to have a verified preapproval in hand, since you want to be certain that you're likely to be approved for the amount stated in your preapproval letter.
You can call, email, or chat online with customer service Monday through Friday from 9:00 a.m. to 9:00 p.m. ET, or weekends from 10:00 a.m. to 6:00 p.m. ET.
Is Better Mortgage a Reputable Company?
The Better Business Bureau gives Better Mortgage an B rating due to 215 customer complaints against the business. A strong BBB grade indicates a company is honest in its advertising, transparent about business practices, and effective in responding to customer complaints.
On its Zillow lender page, Better has a rating of 4.39 out of 5 stars based on 869 customer reviews. On TrustPilot, it earned 4.2 out of 5 stars based on 1,550 customer reviews. But in J.D. Power's 2022 customer satisfaction study, Better ranked below the industry average.
Better doesn't have any public scandals. But its founder and CEO, Vishal Garg, does. He's been accused of fostering a hostile workplace at Better and of engaging in fraud with some of his previous startups. He also laid off around 900 employees over Zoom in late 2021.
If Garg's reputation worries you, you may decide to get a mortgage through a different company. But it's worth noting that Better Mortgage itself has a pretty clean history.
Better Mortgage FAQ
Yes, Better Mortgage is a real mortgage lending company that is accredited by the Better Business Bureau. You'll see the Equal Housing Lender and Equal Housing Opportunity logos on its website — this means that the US Department of Housing and Urban Development (HUD) holds Better to certain standards regarding discrimination in the lending process.
Better Mortgage could be a good fit if you prioritize speed and are comfortable with a fully-online application process. It isn't the lender for you if you need a VA mortgage or USDA mortgage, or if you don't have a credit score.
Better Mortgage may be a good lender for refinancing your mortgage. It also offers both traditional rate-and-term and cash-out refinancing.
Better Mortgage is a direct lender, meaning you'll apply through Better and it will be the entity that provides you with your mortgage. This differs from a mortgage broker, who helps connect you with a lender, but doesn't actually lend the funds themselves.
According to its website, it takes an average of 34 days to close with Better Mortgage.
Better was founded in 2014 by Vishal Garg.
Previously, Better has advertised that it doesn't charge origination fees. But that appears to have changed, since there are no longer references to this on its website. According to the latest HMDA data, conforming loan borrowers getting a mortgage from Better paid $6,040 on average in origination charges.
Why You Should Trust Us: How We Reviewed Better Mortgage
For our review of Better Mortgage, we used our methodology for reviewing mortgage lenders.
We look at four factors — loan types, affordability, customer satisfaction, and trustworthiness — and give each a rating between 1 and 5, then we average these individual ratings for the overall lender rating. Lenders get higher ratings if they offer a large number of loan types with affordable features, have positive customer reviews, and don't have any recent public controversies.
Editorial Note: Any opinions, analyses, reviews or recommendations expressed in this article are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by any card issuer. Read our editorial standards.
Please note: While the offers mentioned above are accurate at the time of publication, they're subject to change at any time and may have changed, or may no longer be available.
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