Better Mortgage Refinance Review

Consistent with its focus on doing a few things very well, Better refinances homes with existing mortgages, but doesn’t offer home equity loans or reverse mortgages at this time. Refinancing is available through both fixed and adjustable-rate mortgages. The company doesn't refinance property that's held by an LLC.

Currently, Better only offers refinance loans to homeowners with credit scores of 620 or higher—or 680 or higher for a cash-out refinance. The company calculates your score as a median of your scores from all three credit bureaus (Transunion, Experian, and Equifax). Better also asks for 2 years of financial statements, such as W2 and/or 1099 forms. Depending on how the homeowner earns money, they may request their 2 most recent tax returns as well. Closing costs are based on the specifics of each loan, but Better states that their average costs range from $1,500-$3,500. At least 3 days prior to closing, Better promises to send a fully itemized list of closing costs—which generally includes points or credits, third-party settlement fees, and escrow deposit, as well as prepaid interest, taxes, and insurance. Prior to these closing costs, homeowners must pay for an appraisal as well.

Better helps their customers go through the mortgage refinance process in a timely manner, which can be as quick as 3 weeks; from start to finish. The average loan closing time with Better is 32 days, which is 10 days faster than the industry average. Once all the necessary documents are digitally submitted, the homeowner can continue the next steps within a 2-day period. Better's competitive rates and the availability of professional loan consultants to help borrowers through the lending process have earned the company and excellent score on Trustpilot. Better is not rated by the BBB.