LoanDepot is a creditor that issues home loans and personal loans. The company has funded over $125 billion in loans since its founding in 2010. It employs over 6,500 people across the country who can help you decide if it’s time to take out a loan. If you need a mortgage or personal loan, read more to learn if loanDepot is the right lender for you.
In less than 10 years, loanDepot has established itself as the nation’s fifth-largest retail mortgage originator, according to its website. All loans are issued by New Jersey-based Cross River Bank, and might incur an origination fee between 1 and 5 percent of the loan amount. This range is wider than the typical 0.5 to 1 percent for origination fees.
LoanDepot underwrites a variety of loans, and its website comes equipped with mortgage calculators that can preview how much you’ll spend paying off a mortgage.
LoanDepot issues eight types of mortgages and loans:
- Fixed-rate mortgages
- Adjustable-rate mortgages
- Jumbo mortgages
- VA mortgages
- FHA mortgages
- HARP loans
- Home equity loans
- Personal loans
Compare the interest rates for three of loanDepot’s most popular loans:
|LoanDepot Mortgage Rates|
|5/1 adjustable-rate mortgage||5.000%||5.151%|
|15-year fixed-rate mortgage||4.375%||4.759%|
|30-year fixed-rate mortgage||4.875%||5.111%|
|Rates accurate as of Aug. 22, 2018.|
LoanDepot’s lenders operate on a strict “no steering” policy, meaning there’s no incentive to guide to you to one loan over another.
Related: How Much House Can I Afford?
LoanDepot specializes in mortgage lending, but it offers personal loans, too. Learn more about the specific products that loanDepot provides.
These loans are popular for their security because the interest rate will not change for the life of the loan. This sort of loan best suits those who plan on owning their property for a long time. These loans usually come with terms of 10, 15, 20 or 30 years. A 20 percent down payment is typically needed to avoid mortgage insurance.
The rates for these loans change based on market factors. ARMs can have lower initial interest rates that rise later. Hybrid ARMs, where the rate is fixed for a certain amount of time and then becomes adjustable, are also available. A 3/1 ARM, for example, provides borrowers a fixed rate for three years and then can adjust every year thereafter. These loans benefit those who plan on staying at a property for a short period of time or homeowners who want to refinance their mortgage.
Jumbo loans simply allow you to borrow more money than you could with a typical mortgage loan. Interest rates tend to be higher for jumbo loans. At loanDepot, jumbo loans max out at $2 million, and they are available with both fixed-rate and adjustable-rate options. LoanDepot says its jumbo loans “close up to 50 percent faster than the industry average.”
Active-duty service members and veterans might want to consider a VA home loan through loanDepot. These loans come with special privileges, such as no down payment and no need to pay mortgage insurance. Eligible customers might be able to refinance their current mortgage for up to 100 percent of their property’s value through the VA cash-out refinance program. Learn about the VA benefits every military family should know about.
These loans are great for first-time homebuyers, as they require as little as 3.5 percent down, and you can qualify with a lower credit score than you would otherwise be able to for other loans. These loans come with fixed-rate or adjustable-rate options through loanDepot.
The Home Affordable Refinance Program was created to help homeowners who owe as much or more than what their property is worth refinance their mortgages. If you got your loan on or before May 31, 2009, you might be eligible. LoanDepot works with the federal government to refinance your home. This loan lowers your rate for an average savings of $355 per month, according to the lender.
Home Equity Loan
Home equity loans are fixed-rate loans that can return up to 90 percent of the value you’ve built up using your first loan. For example, if your home equity is $100,000, you’re able to borrow up to $90,000. You can also borrow up to 85 percent of your home equity in cash.
If you need to make a big purchase, a loanDepot personal loan has you covered with sums of up to $35,000. Read an in-depth review of loanDepot’s personal loan services.
Pros and Cons of Taking Out a Loan From loanDepot
Paying off a loan is a commitment and requires strategy on the part of the borrower, so consider the pros and cons of a loanDepot loan before borrowing.
Pros of loanDepot
- Strong refinancing options with home equity loans
- No-steering policy
- Wide loan selection
Cons of LoanDepot
- Origination fees might be higher than usual
- Rates not listed on its website
The Bottom Line
LoanDepot has an assortment of mortgages that covers a wide variety of situations and customer needs. Its loan experts work with a no-steering policy, but the origination fees might be higher than usual. Homeowners seeking to cash out will want to check out loanDepot’s home equity loans. Its website breaks down the perks of each loan but fails to show most of the rates, which can make shopping around more difficult.
Click through to learn more about loanDepot’s mortgage options.
More on Mortgage Loans
- How to Find Small Home Loans Under $50K
- 5 Best Lenders for Bad Credit Home Loans
- Ways to Get a Mortgage Even If You Don’t Meet Income Requirements
This content is not provided by the companies mentioned. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by loanDepot or Cross River Bank.