Paramount Bank Mortgage Review for 2021

Paramount Bank says it's people-focused: Big enough to give you all you need, but small enough to remain personal. Its mortgages are backed by good technology.

Lending flexibility 3.5
Customer service 5.0
Ease of application 3.5
Online experience 3.5
Minimum down payment N/A
Minimum credit score N/A
Loan Products Offered

Fixed-rate mortgage
Adjustable-rate mortgage
FHA loan
VA loan
FHA 203(k) rehab loan

Best Features

  • Lower rates and fees on average
  • Available in all 50 states
  • Strong customer reviews online and zero official complaints

Drawbacks

  • Rates aren't advertised online; you have to request a quote for an estimate
  • Only operates physical branches in 9 states
  • Smaller variety of loan options than some other lenders

Overview

Paramount is a very small lender compared to some of the bigger names we've reviewed. But don't let its size put you off. According to data on public record, Paramount had lower rates on average than many big lenders in 2020.

Those who want to visit a branch in-person can find Paramount locations in nine states: AZ, CA, FL, IA, IL, KS, MO, OH, and TX. Others are welcome to apply online in all 50 states. Reviews suggest that Paramount has good technology to support borrowers.

You'll have to request a custom rate quote to see how affordable Paramount Bank is for your mortgage, as it doesn't advertise rates online.


Paramount Bank mortgage rates 

You won’t find Paramount Bank’s current mortgage rates on its website.

However, data on all Paramount loans from 2020 shows its mortgage rates and fees are lower on average than some of the big-name lenders.

Just remember, mortgage rates are personal. So you’ll need to request a custom rate quote from Paramount to see what this bank can offer you.

Average mortgage rates at major lenders

  Paramount Bank Rocket Mortgage Wells Fargo Freedom Mortgage
Average 30-Year Interest Rate, 20201 2.85% 3.20% 3.62% 2.92%
Median Total Loan Costs, 2020 $720 $4,610 $3,370 $3,340
Median Origination Fee, 2020 $0 $2,950 $1,280 $0

Average rate and fee data sourced from public rate and fee records required by the Home Mortgage Disclosure Act (HMDA).

Verify your new rate (Sep 20th, 2021)

Paramount Bank mortgage review for 2021

So what’s to like and dislike about Paramount Bank? Here are some thoughts:

  1. There’s little information online — Meaning you have to engage with a loan officer to get an idea of what your loan might look like
  2. Requirements are non-transparent — It doesn’t release information about its minimum down payment, credit scores, or debt-to-income ratios
  3. Its range of mortgage options is good — But others lenders may have more variety
  4. The bank has a few branches spread across nine states — For those with branches nearby, it has a good reputation for in-person customer service
  5. Reputedly has good technologies to facilitate the mortgage process
  6. Online customer review forums suggest many like it

Paramount’s strong customer reviews give the impression that this is a very good lender to work with. It earns five stars from hundreds of borrowers on multiple platforms.

The biggest drawback from our point of view is the lack of available information online.

This makes it difficult to judge what your rate would look like — or whether you’re likely to qualify — without taking the time to speak to a loan officer.

However, that will mainly be a concern if you have borderline credit or higher debt. For those with an excellent application, qualifying shouldn’t be an issue.

And at worst, if you end up with a different lender, you’ll only lose the time you spent getting a rate quote.

Working with Paramount Bank

The company’s website says, “Paramount Bank’s Loan Originators will meet with prospective borrowers (typically face-to-face) to begin the actual loan application process.”

Before you meet, you have to submit a number of documents, including your most recent federal tax returns, paystubs, and bank statements.

During that encounter, the loan officer will explore your needs in order to recommend the best type of mortgage for you.

However, Paramount Bank only has branches in a handful of states. Meaning not everyone will get that face-to-face experience.

The company is licensed in all 50 states. So for those without a branch nearby, it’s possible to do an initial application online and finish your loan over the phone.

Paramount Bank credit requirements 

As mentioned, the Paramount Bank doesn’t publish either its credit score or debt-to-income ratio requirements.

When discussing credit scores generally, it says those with very high scores tend to get better-than-market rates, while those with average scores tend to get market rates.

Paramount specifies a credit score of 680 as the point below which higher rates may apply.

However, it also says:

“Mitigating circumstances can help your approval process if you have credit issues. Your Paramount mortgage banker can help.”

This may be encouraging for those with low scores for good reasons, provided their financial issues are behind them. It sounds as though Paramount is willing to be flexible and consider an otherwise-strong application despite a lower score.

Paramount Bank customer reviews

We searched the Consumer Financial Protection Bureau (CFPB) complaint database and found no complaints filed against Paramount Bank by its mortgage customers.

In addition, the company earns an average satisfaction score of 4.91 out of 5 across multiple review forums.

Going off those reviews alone, you could assume that Paramount is an excellent lender to work with, as long as its pricing is competitive for you.

Customer service reviews at major lenders

  CFPB Complaints, 20204 Complaints per 100 Mortgages, 20205 J.D. Power Satisfaction Score, 20206
Paramount Bank 0 0.0 Not Rated
Rocket Mortgage 391 0.03 883/1,000
Wells Fargo 554 0.05 840/1,000
Freedom Mortgage 288 0.04 817/1,000

Mortgage loan products at Paramount Bank

The bank’s website lists the following mortgages in its product range:

  • Fixed-rate conventional loans — These conform to the lending requirements of Fannie Mae and Freddie Mac
  • Adjustable-rate conventional loans — These are conventional loans, too, but (within limits) their rates can float up and down with wider interest rates
  • Jumbo loans — aka “nonconforming loans.” These are what you want if you need an outsize loan amount (anything above $548,250 in most areas)
  • FHA loan — Backed by the Federal Housing Administration, these require a down payment of only 3.5%
  • VA loans — Backed by the Department of Veterans Affairs, these are available to select groups, mostly veterans and servicemembers. Zero down payment required. And these often come with lower mortgage rates than others
  • FHA 203(k) loans — So-called “rehab loans” allow you to buy a rundown home and renovate it all within the same loan. The alternative is often buying with one loan, renovating with another and then refinancing both within a single mortgage

That’s a respectable range of mortgages. Most people get one of the loan types listed above.

The only major omission from this list is USDA loans. Paramount Bank is stated to be a USDA-approved lender. However, it does not include the USDA Rural Development loan on its list of mortgages.

You’ll have to speak to a loan officer about availability if you’re interested in this type of loan.

Where can you get a mortgage with Paramount Bank? 

Paramount Bank has a handful of branches across nine states: Arizona, California, Florida (two), Illinois, Iowa, Kansas, Missouri (plus headquarters), Ohio, and Texas.

If you’re within striking distance of one of those branches, odds are you’ll meet with your loan officer in person.

However, Paramount is licensed to lend in all 50 states. So if you don’t mind applying online or over the phone instead of in-person, Paramount’s small branch network won’t be an issue.

You can make an initial application online. And there’s a phone number if you need help.

Is Paramount Bank the best mortgage lender for you?

In 2020 — the most recent data available — Paramount Bank proved to have lower rates and fees on average than many other big lenders. And its excellent customer reviews speak for themselves.

However, mortgage rates are personal. So there’s no guarantee Paramount will be the best lender for you.

To find out for yourself, shop around with a few different lenders before choosing a mortgage.

Verify your new rate (Sep 20th, 2021)

Compare to These Lenders

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Sources:

  1. 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
  2. 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
  3. 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
  4. CFPB Complaints reflect the number of mortgage origination or closing-related complaints filed with the Consumer Financial Protection Bureau for the previous year
  5. 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
  6. 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