Getting a mortgage and comparing your home loan options has never been easier! Credible, which has been known as the kayak of student loans, has launched a mortgage portal that allows you to easily shop for a mortgage in minutes.
If you've been thinking about refinancing your home, or maybe even doing a cash-out refi, you should see what your options are on Credible.
Check out our Credible review and see what we think they are one of the best online mortgage companies.
Quick Summary
- Mortgage refinancing marketplace that matches you with top lenders
- Free to see what your personalized loan options are
- Doesn't impact your credit score to simply shop for loans
Who Is Credible?
Credible is a lending marketplace. They are based in San Francisco and were founded in 2012. The CEO is Stephen Dash. Their website located at https://www.credible.com/mortgage-refinance.
Credible’s lending marketplace allows you to compare services from third-parties for student loan refinancing, personal loans, credit cards, and now mortgage refinancing. Its mortgage refinancing product was launched in 2018.
“From the beginning, Credible’s mission has been to help people make better borrowing decisions by simplifying the shopping and origination experience,” Dash said in an October 2018 interview with MPA magazine. “We set the standard in the student loan industry, saving borrowers tens of millions of dollars and many hours of frustration. Today, we are proud to announce that we are leveraging that same technology to help people make better borrowing decisions when it comes to their largest borrowing obligation, their mortgage.”
How Well Are They Rated?
Credible has an “Excellent,” five-star rating on Trustpilot out of 1,787 reviews. They also have an A+ rating from the Better Business Bureau with a five-star review rating out of 44.
How Does It Work?
Credible doesn’t lend or refinance anything. They instead vet lenders and offer a way for consumers to compare offers from lenders. Some of these lenders are likely ones you’ve heard of:
- LoanDepot
- Quicken Loans Mortgage Services
- Caliber Home Loans
- Stearns
- JMAC Lending
- UMW
Once you find a lender, you can continue using Credible right up until closing. The application process is straightforward and much of it is online. The only parts that require paper documents are some disclosures and closing documents.
Many lenders require a lot of information to prequalify you for a mortgage refinance. You’ll also get a hit on your credit report, which can affect your credit score. Credible does neither. They only request information needed for pre-qualification. Because of their arrangement with the credit bureaus, your credit score won’t be affected by the pre-qualification process. Best of all, it only takes three minutes to prequalify.
Credible offers both mortgage refinancing and home purchase loans.
What Are the Qualifications and Refinancing Offers That Are Available?
Credible qualifications are similar to that of most mortgage refinancing companies. You’ll need a good credit score and a debt-to-income ratio that’s below 45%. This can range depending on your credit score, home appraisal value, and income. The lower those three, the lower your debt-to-income requirement will be.
There are three refinancing options offered as follows.
Fixed Rates
Fixed interest rate loans do not change for the life of the loan. The monthly payment amount remains the same. This provides a predictable payment and amortization schedule.
Adjustable Rates
Adjustable-rate mortgages start with a low-interest rate that adjusts based on the prime rate or some period of time. Depending on the loan, the rate can adjust several times.
If you can pay off the loan before it adjusts to a high rate (higher than a fixed-rate loan), an adjustable-rate loan can be an advantage. An adjustable-rate loan can also work if you are going to be in the house for a short period of time, perhaps because you’re moving.
However, if you experience financial difficulties and the loan begins adjusting up, you might not be able to make your monthly mortgage payments.
Cash-Out Refinance
This option is generally for those who need extra cash. It allows you to pull cash out of your home by taking advantage of the equity in your home.
Here’s how it works: If your home value is $300,000 and you owe $200,000 on it, you have $100,000 in equity. The $200,000 mortgage can be refinanced into a larger mortgage. The difference is the amount of cash you need. If you need $50,000, you refinance into a $250,000 mortgage. The original $200,000 mortgage is paid off and you receive $50,000 in cash. Because you have a bigger mortgage, your monthly notes will be higher. There’s also a chance that the rate will be higher.
Why Should I Choose Them?
Unlike other loan comparison sites, Credible uses your specific information to find lenders. Other comparison sites use more generic information, which can provide inaccurate results. With Credible’s results, the quoted rates and terms are very close to what you will get at closing.
If you’re looking to refinance your mortgage, Credible offers a unique product. Their application process is fast, your credit score isn’t affected, and they match you with the best refinance offers available. Their service doesn’t cost anything to check personalized rates and you can use Credible right up until closing.
Credible Mortgage Review
- Commissions and Fees - 100
- Ease of Use - 100
- Customer Service - 100
- Loan Options - 70
- Features - 90
Overall
Robert Farrington is America’s Millennial Money Expert® and America’s Student Loan Debt Expert™, and the founder of The College Investor, a personal finance site dedicated to helping millennials escape student loan debt to start investing and building wealth for the future. You can learn more about him on the About Page, or on his personal site RobertFarrington.com.
He regularly writes about investing, student loan debt, and general personal finance topics geared towards anyone wanting to earn more, get out of debt, and start building wealth for the future.
He has been quoted in major publications including the New York Times, Washington Post, Fox, ABC, NBC, and more. He is also a regular contributor to Forbes.
