Top 5 Bankrate 30-year mortgage lenders

• Better.com
• Lower
• AmeriSave Mortgage Corporation
• Rocket Mortgage
• First Mortgage Direct

Methodology

Bankrate helps thousands of borrowers find mortgage and refinance lenders every day. To determine the top mortgage lenders, we analyzed proprietary data across more than 150 lenders to assess which on our platform received the most leads within a three-month period. We then assigned superlatives based on factors such as fees, products offered, convenience and other criteria. These top lenders are updated regularly.

• Better.com

  Better.com, also known as Better Mortgage, is a direct online lender established in 2016 that provides a completely online process where rates, loan preapprovals and resources are available 24/7.

  Strengths:

  • No commissions or fees charged
  • Smart technology automatically looks for and applies discounts to eligible borrowers
  • Automated process yields a preapproval letter in three minutes

  Weaknesses:

  • No branch locations
  • No home equity lines of credit (HELOCs) or home equity loans
  • Some government loans not available

  Read Bankrate's Better.com mortgage review

• Lower

  Lower is an online-only mortgage lender with perks like 21-day closings and special deals for existing customers.

  Strengths:

  • Fully online process
  • App designed to help borrowers save for their down payment
  • No lender fees on refis for existing borrowers

  Weaknesses:

  • High fees for new customers
  • Not available in all 50 states

  Read Bankrate's Lower mortgage review

• AmeriSave Mortgage Corporation

  AmeriSave Mortgage Corporation claims to be one of the largest and fastest-growing direct-to-consumer mortgage lenders in the U.S. The digital lender has approximately 1,250 licensed mortgage originators spread across the country, offering in-house underwriting, processing, funding and closing services.

  Strengths:

  • Available in all U.S. states (except New York) and Washington, D.C.
  • Offers prequalification and customized rate quote in a few minutes and without a hard credit pull (in most cases)
  • Transparent pricing and fee structure

  Weaknesses:

  • No branch retail locations
  • No formal buyer education classes in person (though does offer an online “Knowledge Center”)
  • Doesn’t offer a first-time homebuyer program

  Read Bankrate's AmeriSave Mortgage Corporation review

• Rocket Mortgage

  Rocket Mortgage is a leading online mortgage lender in the U.S. The lender offers a broad selection of purchase and refinance options, including a flexible-term product called “YOURgage,” which allows borrowers to set the terms of their loan from eight to 29 years, and cash-out refinancing.

  Strengths:

  • Low down payment requirement (as little as 3 percent down)
  • Customer service regarding new loans available seven days a week via phone or chat

  Weaknesses:

  • No brick-and-mortar locations
  • Doesn't offer USDA loans, home equity lines of credit (HELOCs) or home equity loans
  • Limited information about lender fees available online

  Read Bankrate's Rocket Mortgage review

• First Mortgage Direct

  First Mortgage Direct is the online lending division of First Mortgage Solutions, a brick-and-mortar lender based in Kansas City, Missouri. The lender doesn’t charge origination fees or other hidden costs, nor participate in any gimmicky specials or limited-time offers. Typically, qualified borrowers can obtain a preapproval within 48 hours, and purchase loans generally close within 30 days.

  Strengths:

  • Borrowers assigned readily available loan officer to work with via phone or email
  • No origination or hidden fees
  • Loans for purchases, first-time homebuyers and refinancing

  Weaknesses:

  • Not available in every state
  • Limited call center hours for general inquiries
  • No mortgage rates advertised online

  Read Bankrate's First Mortgage Direct review

Pros and cons of a 30-year mortgage

Choosing the right home loan is an important step in the home-buying process, and you have options based on your credit score, income, down payment amount, budget and financial goals. Here are the main pros and cons of a 30-year fixed mortgage.

Pros

• Lower monthly payment: Repaying a mortgage over 30 years means you’ll have lower, more affordable payments spread out over time compared to shorter-term loans like 15-year mortgages.
• Stability: Having a consistent principal and interest payment helps you better map out your housing expenses for the long term. (Your overall monthly housing expenses can change, however, if your homeowners insurance and property taxes go up or down.) Of course, this is only true if your mortgage has a fixed rate. An adjustable-rate mortgage won’t give you this same benefit for the whole life of the loan.
• Buy more house: With lower payments, you might be able to qualify for a larger loan amount and may be able to afford a more expensive home.
• More wiggle room: Lower monthly payments can provide more cushion in your budget for other goals, like saving for emergencies, retirement, college tuition or home repairs and maintenance.

Cons

• More total interest paid: Stretching out repayment over 30 years means you’ll wind up paying more in interest overall than you would with a shorter-term loan.
• Higher mortgage rates: Lenders usually charge higher interest rates for 30-year loans because they’re taking on the risk of not being repaid for a longer amount of time.
• Becoming house poor: Just because you might be able to afford more house with a 30-year loan doesn’t mean you should overstretch your budget. Give yourself some breathing room for other financial goals and unexpected expenses.
• Slower equity growth: It will take longer to build equity in your home because most of your initial mortgage payments will go towards interest rather than paying down your principal amount.

Why compare 30-year mortgage rates?

It’s important to shop around when you’re looking for a mortgage to make sure you’re getting the best deal. Bankrate’s mortgage amortization calculator shows how even a 0.1 percent difference on your rate can translate to thousands of dollars you could have to pay out over the life of the loan.

Bankrate can help you connect with below-average rate offers to help you save even more.

30-year mortgage FAQ

• What is a 30-year fixed mortgage?

  A fixed-rate mortgage has an interest rate that doesn’t change over the full term of the loan, which, for a 30-year mortgage (as the name suggests) is 30 years. It’s a popular choice for many homebuyers because of its stable monthly principal and interest payments are ideal for predictable monthly household budgets, at a more affordable cost than shorter-term loans.

• How are 30-year mortgage rates set?

  Mortgage rates in general are influenced by a variety of factors, which means there’s no one specific rate available in the market at any time. Broadly, mortgage rates are influenced by Federal Reserve policy, which affects borrowing costs for banks that then get passed onto their customers who take out loans. On a more granular level, every mortgage applicant is evaluated by a variety of metrics including credit score, employment history, income, existing debts and other factors, all of which influence what rate a lender will offer you.

• When to consider a 30-year fixed mortgage

  A 30-year fixed mortgage is best for those looking for predictable, relatively low monthly payments. You’ll wind up paying more in interest over the life of a 30-year mortgage than a 15- or 20-year one, but because of the longer repayment timeline, your monthly costs will be lower, so the more expensive loan may ultimately be easier on your budget.

• Comparing 15- and 30-year mortgages

  During the height of the pandemic, 15-year mortgages had a bit of a renaissance, as low interest rates made them affordable to more borrowers than ever. With rates rising, more homeowners and buyers need to crunch the numbers to see what makes the most sense. The key question: What is your priority? If you value low monthly payments, a longer-term loan makes more sense. If you want to pay off your mortgage quickly and are more concerned with paying less in interest overall, a 15-year loan is probably right for you.

• Differences between a fixed- and adjustable-rate mortgage

  Fixed-rate mortgages are the most common type of loan, and are popular because the steady interest rate means predictable monthly payments for the life of the loan. Adjustable-rate mortgages, on the other hand, might have lower interest rates and payments initially, but after a set fixed period, the rate will start to change periodically. That can be great when mortgage rates on the market are low, but if rates for new loans go up, so will yours, and your payments along with it.

• Refinancing a 30-year mortgage

  It’s generally a good idea to refinance your 30-year fixed mortgage into a new loan if you can get a lower interest rate, lower your monthly payment, or improve your financial situation in another way. However, if you’re several years into repaying your loan and you refinance into a new 30-year mortgage, you’ll be paying more total interest in the long run by starting the repayment clock from scratch again.

  You’ll also need to determine if the closing costs on your new loan outweigh the savings you’ll gain from lower monthly payments over time. When you refinance a 30-year mortgage, you’ll pay lender origination fees and third-party fees for an appraisal and other closing costs. Most lenders also require you to have at least 20 percent equity in your home to refinance, so make sure you qualify before planning a new budget for yourself.

  If you can, consider refinancing a 30-year mortgage into a shorter loan, which will avoid lengthening your overall repayment period and help you save on interest. Keep in mind, though, you might have a higher monthly payment depending where you are in the amortization schedule.

Other mortgage tools:

• Mortgage calculator: estimate your monthly payment and see how much house you can afford
• Compare today's top refinance rates: lower your monthly mortgage payment
• First time home buyers grants and programs: get financial assistance to lower your down payment and closing costs