Freedom Mortgage Review

Freedom Mortgage's mortgage lending arm originates a large variety of loan types, including conventional 15-, 20-, and 30-year fixed rate loans as well as 3-, 5-, or 7/1 adjustable-rate mortgages.

Fixed-Rate Mortgages – are best suited for those who’d like to lock into a specific interest rate. This means their mortgage payments will be the same every month. It also means the principal and interest rates on the loan won’t change. This is ideal for those looking to stay for a long time in their home, whereas adjustable-rate mortgages have an interest rate that may change over time.

Adjustable Rate Mortgages (ARM) – After an initial fixed-interest period (which is offered in three, five, or seven-year periods) the interest rate will change. Owners can take advantage of competitively low rates instead of being locked into the rate that was available at the time of their loan. On the other hand, this means that their interest rate – and consequently, their mortgage payment – could suddenly go up. However, it can be the best option for owners who are planning to sell in a few years.

Freedom Mortgage also offers several government-backed loans, such as Federal Housing Administration Mortgages (FHA,) The U.S. Department of Agriculture (USDA) loan, Veterans Affairs (VA) loans, and The Home Affordability Refinance Program (HARP).

FHA Loans – These loans are geared toward first-time homeowners with low to moderate income that cannot make a large down payment. They also cater to those with lower credit scores and require a down payment as low as 3.5% of the total property price. Another perk is that the down payment can come from gifts or grants.

USDA Loans – Offered through the U.S. Department of Agriculture, these are geared toward those living in rural parts of America who have low to modest income. They do not require a down payment either or set a maximum purchase price.

Veterans Affairs Loans – These loans are designed specifically for current and retired members of the armed forces. One big perk of VA loans is that they do not require a down payment or private mortgage insurance (PMI payments), and tend to have lower interest rates compared to other loan options.

HARP Loans – These loans provide refinancing options to homeowners with loan-to-value ratios that are too high to be refinanced by other programs.

In other words, their home may be worth less than what is currently owed on their mortgage and this loan can help current homeowners refinance into a more affordable mortgage. It can also help homeowners lower their interest rate or even switch from an ARM to a fixed-rate mortgage. However, HARP loans have very specific requirements. For instance, in order to qualify, the homeowner must be current on their mortgage payments, the home must be their primary residence, the loan must have been originated before 2009, the loan-to-value ratio must be above 80%, and the loan should be owned by Freddie Mac or Fannie Mae.

Although all of these products have different requirements (such as maximum and minimum loan amounts) and can vary depending on the borrower's geographic location, Freedom Mortgage’s extensive selection of mortgage solutions ensures the majority of borrowers will be able to find an option that meets their needs.

Freedom Mortgage's website is easy to navigate and full of information, including a large number of helpful articles, a Monthly Mortgage Estimate calculator, and both an online application and quote service, without having to give any personal information.

The potential homeowner can fill out an inquiry form online, specifying the loan type they’d like and receive a call back from a licensed loan specialist. Or, the consumer can call Freedom Mortgage’s main hotline. After speaking to a specialist and receiving their rate, the consumer can apply over the phone or online.

For those who’d like to get a better idea of what they could be paying, Freedom Mortgage’s online quote tool can provide the user several possible rate options based on zip code, home type, price of house, and credit score. However, these rates don’t include taxes, insurance premiums, and the actual monthly housing expense will be higher.

Decision and closing times aren't specified, but we found multiple instances of customer feedback in which borrowers were able to close earlier than expected.

After closing, Freedom Mortgage clients will be able to sign up for the company’s online portal where they will be able to view their loan details, such as insurance, taxes and escrow, and recent loan activity, including payments. Clients can also make a payment online or set up auto-pay from a checking or savings account.

Though Freedom Mortgage doesn't state a specific sum as their minimum down payment, they do recommend that it comprise at least 20% of the total purchase price, although FHA loan programs accept as little as 5%.

Their minimum FICO score of 620 is in line with standard industry practices.

Freedom Mortgage was founded in 1990 but has fast become a respected player in the national mortgage industry.

They enjoy an A- rating with the BBB, which accurately reflects their low complaint ratio and commitment to customer service. If you would like to know more about top mortgage rates, you can check out our review of the Top Mortgage Rates of 2018.