loanDepot Mortgage Review for 2020

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

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 (Jul 25th, 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 mortgage

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 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 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 at

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 FAQ

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.