Best Mortgage Lenders of December 2023

There’s no one-size-fits-all mortgage lender. However, top lenders typically offer great service and loan products that cater to your unique needs. So whether you prefer an all-digital loan experience or need a special homebuying program, our list can help you hone in on the lender that’s right for you. LendingTree considered a wide variety of factors to pick the best mortgage lenders of December 2023.

Best mortgage lenders

Lender	LendingTree rating and “best of” category	Lender review
	Refinance loans	Read our review
	VA loans	Read our review
	Jumbo loans	Read our review
	Online mortgage experience	Read our review
	FHA loans	Read our review
	Home equity loans	Read our review
	Mortgage loan variety	Read our review

  Read more about how we chose our picks for the best mortgage lenders

Best for refinance loans: Guaranteed Rate

Best for VA loans: Rocket Mortgage

Best for jumbo loans: Ally Bank

Best overall online mortgage experience: Zillow Home Loans

Best for FHA loans: AmeriSave Mortgage

Best for home equity loans: BMO Harris

Best overall mortgage loan variety: Fairway Independent Mortgage

Current mortgage rates

Current mortgage interest rates forecast

The mortgage interest rates forecast for December 2023 is for rates to remain relatively high — in all likelihood far above 7%. Experts expect inflation to cool sometime next year, bringing mortgage rates down. If this happens, it could also reinvigorate the housing market, said Jacob Channel, LendingTree’s senior economist.

Are interest rates going down?

Rates on 30-year fixed mortgages have been on an upward trajectory since February 2023 and spiked to 7.79% in late October — the highest level in more than 20 years. However, rates began a slow dip at the end of October, dropping by more than half a percentage point over the next five weeks. They have since fallen to 7.22%, according to the Nov. 30, 2023, Freddie Mac Primary Mortgage Market Survey®. 

Nonetheless, rates remain high compared to their pre-pandemic levels. This has made it difficult for many potential homebuyers to move forward with a purchase, Channel noted. In fact, affordability has plummeted, and is the lowest it’s been since 1989. The annual income needed to afford a median-priced home now tops $107,000. 

Mortgage payment: What’s included?

There are four moving parts to most mortgages: principal, interest, taxes and insurance, or PITI for short. Here’s how each piece of a mortgage payment works:

1. Principal. This is the portion of your loan balance paid down with each payment. At first, the bulk of your payment is interest, but over time you pay more principal through a process called amortization.
2. Interest. This part of your payment is charged monthly based on the mortgage interest rate you choose. The interest is based on a percentage of your loan amount. Most of your mortgage payment covers interest charges for the first several years. As your loan balance drops, the interest charges shrink.
3. Taxes. Lenders collect one-twelfth of your annual property tax bill as part of your monthly payment. The money goes into an escrow account that your lender uses to pay your taxes when they’re due.
4. Insurance. Lenders require homeowners insurance to cover losses from fire, theft or other damage to your home. The premium is divided by 12 and the monthly portion is deposited into your escrow account. Depending on your down payment or loan type, you may also pay monthly mortgage insurance to protect the lender if you default.

How to compare the best mortgage lenders

LendingTree studies consistently show that consumers save when they shop at least three to five lenders before choosing a mortgage company. Follow these tips to choose the best mortgage lender for your home loan needs:

→  Gather rate quotes on the same day. Rates change daily, and your loan estimates should feature the same date.

→  Compare estimates for the same loan type. Government-backed interest rates are typically lower than conventional mortgage rates, but they come with costs like FHA mortgage insurance or VA funding fees.

→  Talk to different types of mortgage lenders. A mortgage broker matches your financial profile to the rates and products of multiple lenders. Direct lenders approve and fund your loan in-house and usually have access to various down payment assistance programs. Your local bank or credit union may offer you a rate discount if you carry large deposits or agree to set up auto monthly payments for your mortgage.

Types of mortgage loans

Before you shop, pick the right type of mortgage loan for your finances. Below are highlights of the five most common mortgage loan programs:

FHA loan

The Federal Housing Administration (FHA) insures loans made by approved lenders with more lenient qualifying requirements than conventional loans. Borrowers with scores as low as 580 only need a 3.5% down payment, but pay expensive FHA mortgage insurance for the life of their loans. FHA loan limits are lower than conventional loans, with a current maximum of $472,030 for a one-unit home in most of the country’s counties.

See our current FHA rates for top lenders

Home equity loan or home equity line of credit (HELOC)

Homeowners can convert some or all of their home’s equity to cash with a home equity loan or home equity line of credit. Home equity loans are popular with borrowers that need all the money at once and want the security of a fixed-rate monthly payment.

A HELOC works like a credit card with a balance that can be used, paid off and re-used for a set time called a draw period. Payments are based only on the outstanding balance, and interest-only options are common.

View our current home equity loan rates

VA loan

Eligible military borrowers can get zero-down financing with a loan backed by the U.S. Department of Veterans Affairs (VA). VA loans don’t require mortgage insurance and loan limits don’t apply. However, a VA funding fee may be required depending on the down payment and whether the veteran has used their VA benefit before.

Browse current VA rates for top lenders

Conventional loan

Conventional loans aren’t guaranteed by any government agency. Lenders follow rules set by Fannie Mae and Freddie Mac, which tend to be more strict than government-backed loans. You’ll need at least a 620 credit score and a 3% down payment to qualify. Conventional loan limits for single-family homes are capped at $726,200 for most parts of the country.

Jumbo loan

A jumbo loan is a mortgage with a loan amount above the conforming loan limits set each year by the Federal Housing Finance Agency. You’ll likely need a jumbo loan if you’re buying a home in an expensive part of the country. You’ll need a higher credit score and down payment to qualify and typically pay a higher rate.

See current jumbo mortgage rates for top lenders

 Get Quotes From Up to 5 Lenders, Compare, and Save to Get the Best Mortgage for You