Newerz Mortgage Review 2025

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Yahoo View: Newrez’s strongest features are its 45-day price lock program, up-to-date guarantee, and a 0.50% closing price discount if you use a real estate agent through the company. However, customer satisfaction ratings are below average – among both lenders and mortgage servicers.

Newrez is a national mortgage company that originates loans in all 50 states and several US territories. The lender offers a wide variety of mortgage loans, including conventional, FHA, VA and home equity loans, as well as purchase, finance and investment property loans.

Unfortunately, Newrez is not known for its customer service. In the year According to 2024 JD Power surveys, the company ranks below average in customer satisfaction for both mortgage origination and loan servicing. (Its servicing arm, Shell Point Mortgage, also recently faced a class-action lawsuit over illegal inspection fees.)

Read more: The best mortgage lenders for first time home buyers

Key benefits

  • Newrez offers a wide range of loan products, including conventional, FHA and VA loans, as well as home equity loans and investment property loans.

  • By using a NewRez partner real estate agent, buyers can get a closing cost credit of 0.50% of the purchase price of their home.

  • The lender allows a baseline 45-day rate lock, and if rates drop, you can re-lock at a lower rate at no additional cost. Some buyers may qualify for price locks of up to 75 days.

  • Recent Guarantee pays $5,000 to qualified borrowers if your loan doesn’t close on time.

Need to know

  • Newrez does not offer USDA loans, jumbo loans or HELOCs.

  • The lender does not have physical branches. You can apply online or call a loan officer over the phone to start your application.

  • The company ranks below average in customer satisfaction, both in mortgage servicing and origination.

  • According to government data, conventional loans make up the largest portion of Newerz loans, followed by FHA loans.

  • The lender recently acquired Caliber Home Loans. Shell Point Mortgage Services is part of the Newrez Group.

Visit the Newraz Mortgage website to get started.

Newrez offers the following home loans:

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  • USDA Loans (available through wholesale only)

  • Jumbo loans

  • Lot loan

  • Construction loan

  • Guest accommodation loan

  • Second mortgages

  • Non-QM loans

  • Energy efficient mortgages

  • Renovation loan

  • 1% discount loans

  • Bridge loan

  • Manufactured home loan

  • Piggyback loan

  • ITIN mortgages

  • Medical professional loans

  • HELOCs

Read more: How does an investment property loan work?

Newrez offers FHA loans for home purchases and refinancing of existing loans. According to data from the Home Loan Disclosure Act of 2023, FHA loans account for about 30% of the company’s total mortgage originations. FAA Loans are Neurez’s second most popular mortgage product behind conventional loans.

Learn more: Best FHA lenders

For veterans, military members and their families, NewRez also offers VA loans – a form of insurance under the US Department of Veterans Affairs.

Newrez offers both VA purchase loans and VA refinances, IRRRLs — Interest Rate Reduction Modification Loans. These are known as VA streamline refinance loans and allow you to easily refinance from one VA loan to another (and with less paperwork). Overall, VA loans account for 13 percent of all new mortgages.

Read more: The best VA loan lenders

Newrez offers cash withdrawals for homeowners who want to withdraw money from their home. With this type of mortgage modification, you replace your current mortgage loan with a larger one and receive the difference in cash. (Note: it replaces your loan term and interest rate, so this may not be a good idea if you have an extremely low interest rate on your current loan.)

Newrez does not offer home equity lines of credit (HELOCs), but it does have home equity loans. Learn more about these below.

Newrez offers home equity loans that allow you to borrow from the equity you’ve built up in your home and make a one-time payment in return. These are a type of second mortgage and come with a second monthly payment in addition to your original mortgage payment.

Newrez allows you to borrow up to $350,000 with a HEL based on how much equity you have in your home. You need a minimum credit score of 660 to qualify.

Different fees can come with newrez loans, including home equity loans. For example, there may be up to a $300 acquisition fee (since the loan is “subject” to your principal loan) or appraisal or appraisal fees to determine the value and equity of your property. These range from $80 to $1,000.

Dig deep; How does a home equity loan work? A complete overview

Newrez is not ahead of interest rates. Its website doesn’t have any ads or sample rates, and to get a quote, you’ll need to fill out an online application with the lender or talk to a loan officer over the phone. This is the case with all new types of loans and programs.

Read more: 5 ways to get the lowest mortgage rate

Yahoo Finance uses 2023 Home Loan Disclosure Act data from 10 million home loan applications to score lenders on mortgage rates and total loan costs. We rate each lender from 1 (lowest) to 5 (highest).

For example, a lender with a low score on mortgage rates charged an above-average mortgage interest rate for loans issued in 2023. A higher score indicates that the lender has a lower than average home loan interest rate in 2023.

In terms of total home loan costs, a low score indicates that the lender will charge higher than average total home loan costs in 2023. A higher rating means a lender offers lower than average home loan costs in 2023. .

What does this mean? Newrez offers lenders an above-average mortgage rate of 6.75% and an above-average total loan cost of $7,8019.17 in 2023.

You can apply for a Newrez mortgage online using the lender’s digital app or by calling 888-556-9979. This applies to purchase loans, financing and home equity loans. When you apply, you’ll need to provide personal information, details about the home you’re buying, your down payment amount and other financial details.

Newrez provides pre-approval for the loans. This requires the submission of various financial documents, which the lender will then verify. Once processed, you will receive a letter stating how much you can borrow. You can use this when submitting offers on properties.

Pre-approvals are free of charge. You can get started on your own by calling 888-556-9979.

Learn more: What documents do I need for a mortgage pre-approval?

Newrez offers a wide variety of online tools and resources for borrowers.

You will find the following types of mortgage calculators:

  • Monthly mortgage payment calculator

  • A financing calculator that shows how much you can save by refinancing

  • Loan amount calculator to show how much you can afford

  • Rent versus buy comparison

  • Comparison of loan term

Newrez also has in-depth resources, FAQs, and blog posts.

Dig deep; Use Yahoo Finance’s free mortgage payment calculator

  • Many online resources: Newrez offers five handy calculators, a deep database of recently updated blogs and articles, various guides, FAQs, and more. It gets 4 stars in this category.

  • Many affordable loan options; The lender has government-backed loans, low standard loans, refinancing and home equity products, giving it 4 stars in our affordability category.

  • Broad reach: Newrez offers loans in all 50 states, making its products very accessible to many borrowers.

  • Poor price transparency; Newrez does not have any sample or ad pricing to gauge pricing. It receives 1 star in the rate transparency category.

  • High borrowing costs; According to government data, the price and payment is higher than the industry average. It gets 2 stars in this area.

  • Below average customer satisfaction: Newrez ranks below the industry average for satisfaction with both mortgage servicing and mortgage origination.

Read more: Closing costs – instructions on how to do it and how much to pay

Newrez and Freedom Mortgage are both national mortgage lenders, but the two differ slightly in their product offerings. While NewRiz offers home equity loans and interest-only options, Liberty does not. However, Freedom has USDA loans for rural homebuyers – something Newrez lacks.

Both companies rank low in customer satisfaction (although Liberty is slightly higher) and neither site advertises or shows sample interest rates to compare. You can apply online with both the loan lenders as both do not have physical branch locations.

Freedom Mortgage Review

In addition to USDA and Jumbo loans, PennyMac offers the same mortgage options as NewRiz. PenniMac ranks high in customer satisfaction with its mortgage service, but dead-end among all participating lenders in the latest JD Power Loan Origination Survey. Although it offers an option to buy interest rates, Neurez does not. PennyMac is also more upfront about mortgage rates, offering sample rates on its homepage.

If you’re interested in the type of mortgage loan that both lenders offer, try applying for pre-approval with both to see which one offers the best deal.

Pennymac Mortgage Review

Yes, Newrez is a legitimate mortgage company that originates and services mortgage loans throughout the U.S. The Better Business Bureau has awarded the company an A+ rating.

Newrez has very low customer reviews and rating scores. It ranks below average with mortgage origination and mortgage servicing in JD Power surveys for customer satisfaction and has a 1.1-star rating on Trustpilot, with 95% of reviewers giving their experience with the company just one star.

In the year In 2024, a class action lawsuit was filed in Maryland stemming from claims that Newrez charged illegal inspection fees to home buyers in the state. The suit was technically filed against Shell Point Mortgage, a Newraz subsidiary, and settled for $152,000.

Prior to 2019, Newrez was known as New Penn Financial. The company acquired Caliber Home Loans in 2021. The loans have since been transferred to the Newrez business.

Newerz mortgage appraisals tend to be lower. The company ranks low on JD Power’s customer satisfaction rating (both in terms of service and quality) and has a business office rating of 1.37 out of 5 stars from customer reviews. The company also has a 1.1-star rating on Trustpilot. Most customers (95%) gave Neurez only one star.

Method:

Yahoo Finance scores mortgage lenders in five main categories: 1) Interest rates. Using data from the Home Loan Disclosure Act of 2023, which consists of 10 million home loan applications, we rank lenders below or above the annual average of reporting lenders. 2) proportionality. A measure of credit product availability and the lender’s willingness to offer government-backed loans, including down payments, down payment assistance and non-traditional credit. 3) Loan costs. HMDA data was reanalyzed and lenders were ranked based on total loan costs compared to the annual median. 4) level of transparency. A website user’s ability to get a mortgage interest estimate. We rate lenders based on adjusted discount points or higher credit score requirements, disclaimers showing rate estimates, sample advertised rates, and adjustable or no discount score estimates. 5) Online features. Analysis of educational materials, calculators and additional resources available to users.

A review of data from the National Multistate Licensing System (NMLS) regulatory actions may trigger a penalty at any creditor point of an administrative or enforcement action related to consumer credit within the past five years.

Advertisers or sponsorships do not affect ratings.

Editorial Note for Home Loans:

The information in this article has not been reviewed or endorsed by any advertiser. Detailed information on financial products, including interest rates and fees, is correct at the date of publication. All products or services are provided without warranty. Check the lender’s website for the most up-to-date information. This site does not include all currently available offers.

This article was edited by Laura Grace Tarpley.

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