Adjustable rate mortgage
- Innovative mortgage technologies
- Good range of mortgage products offered
- High levels of customer satisfaction
- Branches are not widely available
- Rates and closing costs are average
- Online information is restricted until you've set up an account
In an industry of financial giants, loanDepot is something of a new kid on the block. It's only been around since 2010.
In that time, though, loanDepot has grown to become the fourth-largest mortgage lender in the U.S.
It's known for deploying innovative mortgage technologies that make the home financing process smoother and faster for customers — especially those that are willing to conduct business online.
Overall, loanDepot is a strong contender if your main objective is to land a mortgage or refinance with minimum hassle.
Be sure to compare rates and closing costs and make sure loanDepot's pricing is competitive for you, too.
Compare loanDepot mortgage rates
LoanDepot does not show current mortgage or refinance rates on its website. You’ll have to ask for a quote to see loanDepot’s interest rates, which requires you to add personal details and contact information.
However, we did get a sense of how loanDepot mortgage rates stack up by looking at average 30-year rates from 2019.
Average 30-year mortgage rates at top lenders
Average 30-Year Interest Rate, 2019
Monthly P&I Payment*
Median Loan Costs, 2019
Median Origination Charge, 2019
Overall, loanDepot seems to have average rates and fees compared to other top lenders. But remember, rates vary a lot by person. So it’s worth requesting a quote to see what yours is.
Average rate and fee data were sourced from public rate and fee records required by the Home Mortgage Disclosure Act (HMDA).
*Monthly principal and interest payment based on a $250,000 home price, with 20% down, at each company’s average 30-year interest rate for 2019. Your own rate and monthly payment will vary.Verify your new rate (Dec 3rd, 2020)
LoanDepot mortgage lender review for 2020
Despite being a relatively new mortgage company, loanDepot has quickly grown into a serious player.
From its headquarters in Foothill Ranch, CA, loanDepot is licensed to operate in all 50 states and has almost 200 branches or “lending stores.” It’s also America’s fourth-largest mortgage lender according to the Consumer Financial Protection Bureau.
So, what’s loanDepot’s special sauce? Many customers choose the company for its innovative technology and good customer support.
LoanDepot says it “matches borrowers through technology and high-touch customer care with the credit they need to fuel their lives.” That makes it sound like a dating website for money, which isn’t a bad analogy.
LoanDepot’s main proprietary technology, called “mello smartloan,” pairs borrowers with loans based on their “income, employment, and assets” — all of which happens online. Ideally, this should make the process of getting a home loan simpler and faster.
But with loanDepot’s decision not to post rates online, you’ll have to commit to an application in order to learn whether it’s the cheapest lender for you.
So, should you take the time to fill out a loanDepot app? We dig into the pros and cons below.
Working with loanDepot
Unless you happen to live near one of loanDepot’s few branches, you’ll likely end up handling the majority of your home financing online, backed up by phone calls with one of the company’s 2,000+ licensed loan officers.
Of course, this digital-first method won’t be a drawback for the sort of tech-savvy customers loanDepot means to attract.
The loanDepot website feels modern and welcoming. It lets you apply online, upload documents securely and check your application’s status. Ultimately, you’ll be put in touch with a loan officer to finish the process.
There are just two drawbacks.
First, loanDepot does not offer a mobile app for mortgage shoppers. That’s normal across the industry, but seems strange at a company known for ahead-of-the-curve technology.
Second, it seems that a loanDepot application could open you up to potentially unwanted advertising. The fine print on its loan form reads:
“By clicking ‘continue’, you are authorizing loanDepot.com, LLC and its corporate parent, affiliates and partners to deliver or cause to be delivered to you (including through agents and authorized third-parties) telemarketing promotions for products or services in addition to those about which you are applying.”
Hello, dinner time phone calls.
Still, pushy sales tactics might be a small price to pay if loanDepot’s mello smartloan technology lives up to its promise.
What is loanDepot’s ‘mello smartloan’?
Mello smartloan digitizes and automates many of the steps involved in processing a loan application.
It verifies your income, assets and employment; checks your credit; organizes your appraisal, title insurance and flooding status; and lets you close online.
The company reckons this could shave 75-80 percent off normal lead times.
That means some customers might be able to finalize their home loan in as little as eight days. For comparison, the average time to close a home loan the ‘traditional’ way takes between 44 and 48 days.
All in all, loanDepot has some unique offerings that are particularly good for tech lovers. It’s just a shame you have to engage with the company’s “corporate parent, affiliates and partners,” too.
loanDepot customer service reviews
Customers are generally satisfied with their loanDepot mortgage or refinance experience.
The company scored 850 out of 1,000 points on J.D. Power’s customer satisfaction survey, and has fewer than one complaint per thousand customers registered with the Consumer Financial Protection Bureau.
Mortgage-related complaints at major lenders
Mortgage Originations 2019
Complaints per 1,000 Mortgages
2019 JD Power Rating
Mortgage loan products at loanDepot
LoanDepot has a broader range of mortgage products than some of its competitors. That means different types of buyers should be able to find a fitting loan — from those with low down payments and challenging credit to multi-million dollar borrowers.
LoanDepot offers the following types of mortgage loans:
- Fixed-rate mortgages — Most borrowers opt for a 30-year fixed-rate mortgage, though 10-, 15- or 20-year options are all available with higher monthly payments
- Adjustable-rate mortgages (ARMs) — Offers a lower rate, which is fixed for an initial period of 3, 5, 7 or 10 years, and a floating rate for the rest of the loan term
- Jumbo loans — Offers a higher cap than conventional loans, generally for mortgages over $510,400. LoanDepot lets you borrow up to $2 million
- FHA loans — Backed by the Federal Housing Administration, FHA loans let you borrow with down payments as small as 3.5 percent of the purchase price and have more flexible credit requirements
- VA loans — Eligible service members and veterans can borrow with zero down payment, no continuing mortgage insurance payments, and easier credit hurdles
- 230k loans — These are special loans for fixer-upper homes, that let you finance up to $30,000 more than the home’s value for necessary repairs
If you can’t decide which would suit you best, loanDepot says its experts will help you choose.
loanDepot home improvement financing
loanDepot offers a few types of home improvement financing, including FHA 203k renovation loans, cash-out refinancing, and personal loans.
The FHA 203k combines a home mortgage and renovation costs into a single loan. It’s a great option for people buying older homes or fixer-uppers that will need major improvements right off the bat. You can also use an FHA 203k from loanDepot to refinance.
Cash-out refinancing is another way to finance home improvements. Using a cash-out refinance, you can tap your home’s equity and put the cash to work however you choose. You can also lock in a lower mortgage rate if rates have fallen since you first took the loan out.
loanDepot also offers personal loans, which can be used for home improvements. Personal loans might be a good option if you don’t have enough equity in your home to use a cash-out refinance.
However, interest rates for personal loans are typically a lot higher than mortgage rates. So weigh your options carefully.
loanDepot is a mortgage lender that specializes in digital loans — meaning much (or all) of the processing is done online. But the company also operates branches where you can meet a loan officer face-to-face. loanDepot offers loans for both home purchase and refinance. It has conventional, VA, FHA, and jumbo mortgages.
Yes, loanDepot is a reputable lender. Though it’s newer than most mortgage companies (it was created in 2010), loanDepot is already the nation’s fourth-biggest direct mortgage lender. Customer reviews are about average, so loanDepot’s service might not always be exceptional. But it may make up for that in speed and convenience thanks to its digital tools.
No, loanDepot is not part of LendingTree. They are two separate companies. loanDepot and LendingTree are related only because loanDepot’s CEO started a different company before loanDepot, which merged with LendingTree in 2004.
loanDepot services some of its loans at its permanent servicing center in New Jersey. You can find contact information for the NJ servicing center here. If your loanDepot mortgage is transferred to a different servicer, the company should send you a letter letting you know who it is and how to contact them.
Our review of loanDepot found that it’s a respectable mortgage lender with a wide range of loan options and convenient digital loan applications. Customer reviews of loanDepot are also pretty positive. The company earns 4 out of 5 stars on Trustpilot and has an “A” rating from the Better Business Bureau. However, it scored only “average” in J.D. Power’s customer satisfaction study.
Where can you get a loan with loanDepot?
NMLS ID: 174457
LoanDepot has branch locations in 43 states: AL, AR, AZ, CA, CO, CT, DC, FL, GA, HI, ID, IL, IN, KS, KY, LA, MA, MD, ME, MI, MN, MO, MS, MT, NC, NH, NJ, NM, NV, NY, OH, OK, OR, PA, RI, SC, TN, TX, UT, VA, WA, WI, WV.
You can also apply for a loanDepot mortgage or refinance online in any state.
Dark purple states have a loanDepot branch location. Light purple states do not.
Overall, the company seems geared more toward tech-savvy borrowers than those who prefer a traditional experience.
That’s not to say you’ll be on your own, adrift in cyberspace. LoanDepot employs more than 2,000 licensed loan officers, and you’ll have one assigned to your loan to help you through the process.
Is LoanDepot the best mortgage lender for you?
If you’re gung-ho about getting the whole mortgage process done online, loanDepot is likely a good place to start.
With such a large volume of customers and consistently high satisfaction scores, it’s a safe bet your mortgage or refinance process with loanDepot will go smoothly.
Just remember that rates and costs vary by customer. Make sure loanDepot’s convenience comes hand in hand with a low rate and reasonable closing costs before signing on.Verify your new rate (Dec 3rd, 2020)
- Average mortgage rates and fees sourced from self-reported data mortgage lenders are required to file under the Home Mortgage Disclosure Act. Rates and fees shown reflect the previous year’s data and may not align with today’s mortgage rates
- Monthly principal and interest payments calculated using TheMortgageReports.com mortgage calculator. Payments shown are based on a $200,000 loan amount and assume a “very good” credit score. Property taxes and homeowners insurance are not included. Your own monthly payment will vary
- Number of mortgage originations for the previous year sourced from self-reported data mortgage lenders are required to file under the Home Mortgage Disclosure Act
- CFPB Complaints reflect the number of mortgage origination or closing-related complaints filed with the Consumer Financial Protection Bureau for the previous year
- Complaints per 1000 mortgages reflect the number of official complaints filed against a lender with the CFPB for the previous year, compared to the lender’s total number of mortgage originations for the previous year
- JD Power Rating reflects the company’s customer satisfaction score according to JD Power’s most recent Primary Mortgage Origination Satisfaction Study. Survey respondents score their lenders in four areas: application/approval process, communication, loan closing, and loan offerings