Tomo Mortgage Review 2023

Breakdown of Tomo overall score

• Affordability: Tomo’s rates are competitive against Bankrate’s averages, and the lender offers several opportunities to save money, whether it’s locking your rate or working with an affiliated real estate agent for a rebate.

• Availability: Tomo isn’t available in every state yet, and it only offers purchase loans, not refinancing.

• Borrower experience: Tomo’s website answers a lot of questions you might have about the loan process, and its intuitive rate calculator spins up current offers in seconds.

• Methodology

  Bankrate's expert editorial team collects lender information through a variety of methods. We contact lenders directly, and we also turn to regulatory filings and to assessments by third parties. Our research takes into account three main factors – affordability, availability and borrower experience.

  Bankrate's reporters and editors have decades of experience covering the mortgage industry. They're skilled at gathering information through interviews and by scouring regulatory filings. Bankrate evaluates more than 85 lenders for factors relating to affordability, availability and customer experience, assigning each a Bankrate Score out of five stars. Here's how we assess each of the categories:

  • Affordability. Loan cost is a deciding factor for many borrowers. We look at two metrics: 1) a lender's lowest advertised annual percentage rate (APR) based on Bankrate's sample scenario, which assumes a 740 or higher credit score and a 20 percent down payment, among other factors and 2) established-customer discounts or incentive pricing, when applicable.
  • Availability. Another factor is how quickly your loan application will be approved, and how many loan programs the lender offers. So we evaluate approval and closing timelines and diversity of loan products.
  • Customer experience. Finally, we delve into what it's like to deal with the lender as a consumer. We look at the lender's application process and availability of customer service support. We also consider the results of J.D. Power's 2022 Mortgage Origination Satisfaction Survey.

  Bankrate's editorial team confirms the accuracy of data at the time of publication. Our team is dedicated to maintaining the timeliness of information – the mortgage industry is changing constantly, so we regularly revisit these reviews to update them.

  Bankrate's methodology page spells out our rating process in greater detail.

Affordability: 5/5

Tomo’s website features a “Find Your Rate” tool that allows you to input basic information (type of property, where it’s located, purchase price, down payment and credit score) and get an instant estimate of APR and monthly payment. You don’t have to share any of your personal contact information to get the estimates. The lender doesn’t charge origination or processing fees, but rate locks cost a flat $450.

Availability: 4.5/5

Compared to other lenders, Tomo’s loan offerings are somewhat limited, with a lineup made up of conventional and FHA purchase mortgages. The lender is only available to borrowers in about 20 states at this time.

Borrower experience: 5/5

Tomo is building a solid reputation from its early cast of customers, with a 4.3 out of five-star rating on Trustpilot. The lender is not yet accredited by the Better Business Bureau.

In addition to a convenient rate estimation tool, Tomo’s website offers a simple user experience: You can chat, call or schedule a time with a loan officer seven days a week. If you qualify, you can get a verified preapproval in three business hours, and also start your application online.

Refinancing with Tomo

Tomo only offers mortgages for home purchases. If you’re looking for refinancing options, you’ll need to consider other mortgage lenders.

Alternatives to Tomo

• Better mortgage review – Another digitally-focused mortgage company, but with more loan programs
• Guaranteed Rate mortgage review – Faster preapprovals, but charges lender fees
• Ally Bank mortgage review – No lender fees, plus a wider selection of loan programs