New American Funding VS Rocket Mortgage: The Better Mortgage Refi Lender

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Ready to refinance your mortgage but not sure which lender to go with? Rocket Mortgage and New American Funding are two of the top lenders in the nation for a reason -- both offer a wide array of loan options, solid customer service, and proven reliability. While neither is a bad option, here’s a quick breakdown of how these two companies compare:

Two people are shaking hands over a table with small house models and a document, possibly finalizing a real estate deal
  1. Loan Options

    Regarding loan options, these companies have similar portfolios, with New American Funding offering just slightly more:

    • New American Funding loan types: FHA, VA, USDA, Jumbo, Conventional, Nonqualifying
    • Rocket Mortgage loan types: FHA, VA, Jumbo, Conventional

    The main disparity here is that Rocket Mortgage doesn't offer USDA loans or have as much flexibility when it comes to self-employed homeowners -- for this group, New American Funding’s Nonqualifying loan is fantastic, as it allows applicants to submit alternative forms of documentation when applying.

  2. Closing Costs & Fees

    Closing costs are rarely, if ever, standardized across all loans, even for one lender. Homeowners should be aware that lenders calculate what added costs to include with each individual loan they offer. It’s important to keep in mind that loans with fewer closing costs or origination fees may charge more in interest to make up for it -- or they may not. Homeowners should always check through their refinance paperwork carefully and take the time to calculate overall costs before signing up with a particular lender.

    When it comes to New American Funding, they are applauded by customers who say their fees are relatively (and refreshingly) transparent. Rocket Mortgage has a similar reputation, with some customers even saying fees were notably low with this lender. In either case, homeowners with a higher credit score and overall better borrower potential are likely to pay lower fees. Though we cannot offer a definitive dollar amount when it comes to potential fees through either of these lenders, we’ll call it a draw for this category.

    As of the day this article is being written, however, New American Funding lists an interest rate on a 30-year fixed mortgage as being half of a percent lower than what Rocket Mortgage lists for the same loan type. Interest rates are always subject to change, but we felt it pertinent to point out this difference, as this can amount to thousands of dollars when all is said and done.

  3. Customer Reviews

    With nearly 400 reviews, New American Funding scores a 4.3 on Trustpilot. Rocket Mortgage has a score of 4.7, with over 19,000 reviews. As you can probably tell, Rocket Mortgage is a much more well-known company; it was started in 1985 and has quickly grown into the largest mortgage loan servicer in the country (a fact that was cemented when they bought out Quicken Loans). Given the number of reviews they’ve received, it’s impressive that their overall score has stayed so high. Customers praise the company’s clear policies, quick response times, and fair loan terms.

    With far fewer reviews, it’s important to keep in mind that New American Funding is a much smaller company. Still one of the top lenders, they are simply nowhere near as well-known as Rocket Mortgage. Their score of 4.3 is still rather high, particularly when you consider that customer reviews in this industry tend to veer towards the negative. Still, Rocket wins here.

  4. Our Verdict

    So, which lender should you choose? That depends on the type of refinance you want, and the current interest rates offered by each lender, but if we have to go with one, New American Funding is the winner. In general, we find that they have a broader range of loan types offered as well as a trend towards (minorly) lower interest rates. When it comes to customer service, both companies have high ratings, and they also appear to offer similar closing costs and fees.

    Of course, results will vary with each homeowner’s situation. We recommend comparing as many lenders as you can and getting some quotes online before settling. For more information on New American Funding, click here. For our review on Rocket Mortgage, click here.

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