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Better Mortgage Review: Guaranteed Low Price and All Digital Experience

Review Updated
Kimberly Rotter, AFC®
Nathan Alderman
Many or all of the products here are from our partners that compensate us. It’s how we make money. But our editorial integrity ensures that our product ratings are not influenced by compensation. Terms may apply to offers listed on this page.

Better might be for you if: You want transparency during the mortgage process. Better is also a top pick for homeowners who want to refinance to a lower interest rate. This Better Mortgage review will highlight the pros and cons of going with Better, and help you figure out if the lender is right for you.

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Best for: Speedy approvals and low fees

Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Bottom Line

Better has the right combination of features and perks, including no unnecessary fees, low mortgage rates, and a fast, 100% online application process. Better Mortgage does not charge lender fees such as those for origination, application, processing, and underwriting. As a result, Better states that home buyers save $8,200 and customers who refinance save $8,200 over the life of their loans.In addition, Better states that applicants can get a personalized rate and a pre-approval in minutes. This can help buyers cut their costs while saving time. The lender also offers $150 off closing costs when applying through Motley Fool Money site.

Min. Credit Score 580 FHA 620 Conventional and VA 700 Jumbo

  • 580

Min. Down Payment

  • 0% - 3.5%

Key Features

  • One Day Mortgage. Lock a rate, get a Commitment Letter in 24 hours. Terms apply.
  • Close 17 days faster than industry average
  • Apply 100% online, entirely on your schedule
  • Better Price Guarantee: Better will match any valid competitor's offer, and credit you an extra $100. If Better can't, the $100 is yours to keep after you close on your loan.

Loan Types

  • Conventional
  • FHA
  • VA
  • Jumbo

Fixed Rate Terms

  • 15y, 20y, 30y

Adjustable Rate Terms

  • 5/6, 7/6, 10/6

Our mortgage rating methodology

At Motley Fool Money, mortgages are rated on a scale of one to five stars, with five stars meaning "best." We primarily focus on rates and fees, customer service, and loan versatility. This includes factors like application process, customer service channels available, and a variety of loan products.

See our full methodology here: Ratings Methodology

Full Better mortgage review

Better (NMLS #330511) is a great fit for home buyers and refinancers who are looking for transparency during the mortgage process and a lender that offers competitive mortgage rates. Another value-added perk is that Better closes faster than the industry average. Better's digital experience helps the lender provide fast service and low rates.

Pros

  • Low price guarantee
  • Fast pre-approval
  • Closing costs discounts
  • All digital

Cons

  • Still growing menu
  • No customizable terms
  • No in-person service

Better mortgage rates

Better's rates trend about the same as the national average. To get the lowest mortgage interest rate, you'll need to pay for discount points (that's normal for mortgage lenders).

Mortgage discount points are prepaid interest that you can pay upfront to lower the interest rate for the life of the loan. One point typically costs 1% of your loan amount and buys your rate down by about one-eighth to one-quarter of a percent. When you compare rates, be sure to look at each lender's fees.

Better refinance rates

Better's refinance rates trend lower than the national average.

Better refinance rates tend to at least match the competition, and run somewhat lower than the national average. However, Better could save you even more money on the fees.

Better fees

Better is one of the most competitive lenders we've seen, considering it offers a faster loan process and fewer fees than many other lenders.

Better doesn't charge an application fee or any hidden lender fees.

Ways to save money with a Better mortgage

Discount on closing costs

How to qualify: Apply through Motley Fool Money.

What you get: Better offers a $150 discount on closing costs to borrowers who apply through Motley Fool Money. Follow the "Check Rates" link in our offer tile at the top of page to take advantage of this promotion.

Better customer service

Better has many excellent customer service reviews online. Better has a rating of 4.4 out of 5 stars on Trustpilot and 4.21 out of 5 stars on the Better Business Bureau. Customers love the transparency and efficiency of its loan process and praise its knowledgeable and responsive advisors.

How to apply for a mortgage with Better

The first step in applying for a mortgage with Better is to fill out an online application for basic pre-approval. The next step is upgrading to Verified Pre-Approval, which you can do by linking your bank accounts and submitting income and tax documents. Better will provide qualified borrowers a Verified Pre-Approval Letter that contains an estimate of the amount they can likely borrow.

The next step is conditional approval, which is a binding agreement from Better approving you for a specific mortgage on a specific home. This step happens after you've made an offer.

Better says you can get basic pre-approval in as little as three minutes. This will give you an idea of your home-buying budget. Verified approvals can be delivered in 24 hours or less. Conditional approvals can also come through as quickly as 24 hours once all the pieces of the application are in place.

You may need the following types of documents to apply for a Better mortgage:

  • Income-related documents: These can include W2s, 1099 statements, pay stubs, and tax returns.
  • Debt-related documents: Debt documentation can include monthly statements for new accounts that haven't yet been reported on your credit profile, release documents for past detrimental events such as bankruptcy or foreclosure, and verification of property-related expenses.
  • Asset-related documents: These can include account statements, documentation for large or recurring transactions, and withdrawal terms if you are using money from a retirement account.

You will need to meet Better's minimum credit score and down payment requirements in addition to submitting necessary documentation.

About Better

Better Mortgage was founded In 2014, as a technology-driven solution to a sometimes bogged-down home-buying system. The goal was to create an automated financing system that could make it easier, faster, and more affordable to purchase a home. Better closed its first entirely online mortgage in 2015, and became a Fannie Mae approved seller and loan servicer the following year.

In 2022, Better became the first fintech company to fund $100 billion in completely digital home loans. In 2023, Better launched its One Day Mortgage, which lets customers get a mortgage Commitment Letter within 24 hours of submitting an application. In the past, commitment letters could take 30 days or longer.

FAQs

  • Better's rates trend lower than the national average. You will have to pay for mortgage discount points to get the lowest rate, but Better's price may be lower than other lenders.

  • Yes, if you are looking for one of the loan types that Better offers. Better's streamlined system allows it to hyper-focus on the products it offers, keeping costs and rates very low, and customer service quality very high. Better offers very competitive rates and fees when you compare its loans apples to apples against the competition.

    That said, Better can't meet the needs of all borrowers. If you need a construction loan, for example, or if you're not a U.S. citizen, you'll need to shop for a mortgage elsewhere.

  • Yes. Better's competitive rates and low fees make it a great choice to refinance your mortgage.

  • You'll need a credit score of 580 for an FHA loan or 620 for a conventional or VA loan. If you qualify for a VA loan, you don't need a down payment. Everyone else needs to make a down payment of at least 3% of the purchase price.

    Ideally, your debt-to-income ratio (DTI) should be no higher than about 36%. That means your monthly debt and housing payments are no more than 36% of your gross (before-tax) income. But Better and other lenders may still be able to get you into a loan with a DTI of 50% or more, so don't be discouraged from applying.

    The main three factors lenders consider are your credit score, down payment, and DTI. You'll be on better footing if you can make a stronger showing on at least two of those criteria.

  • Better offers the most popular home loan options:

    • Conventional mortgage
    • Low down payment mortgage
    • FHA loan
    • Fixed-rate mortgage
    • Adjustable-rate mortgage
    • Jumbo loan
    • Fannie Mae RefiNow and Freddie Mac RefiPossible (for eligible homeowners to refinance to a lower interest rate)
    • VA loan
    • Home equity line of credit (HELOC)