LoFi Direct Review: Do They Offer Low Rates?

mortgage

Today we’ll look into “LoFi Direct,” a mortgage lender based in New Jersey that considers itself one of the fastest growing lenders in the industry.

They’re dedicated to providing more, whether it’s more loan programs, support, or overall value to their clients, along with what they refer to as white-glove customer service.

While they offer the latest technology, such as a digital mortgage application and smartphone app, they believe in the need for live, human interaction when it involves a complex process like obtaining a mortgage.

Let’s learn more to determine if their hybrid approach is a good fit for your home loan needs.

LoFi Direct Fast Facts

  • A consumer direct lender that offers home purchase loans and refinances
  • Founded in 2010, headquartered in Mount Laurel, NJ
  • A division of parent company AnnieMac Home Mortgage
  • An approved seller/servicer with Fannie Mae, Freddie Mac and Ginnie Mae
  • Currently licensed to do business in 48 states and the District of Columbia
  • Funded more than $2 billion in home loans last year

LoFi Direct is a direct-to-consumer retail mortgage lender based in Mount Laurel, New Jersey that was founded just over a decade ago.

Despite being a relatively young company, they fund billions in home loans annually across the United States.

They offer both home purchase financing and refinance loans, with the former accounting for about two-thirds of their total annual production.

Their large share of home purchase lending can be attributed to the many real estate agent relationships they’ve forged over the years.

The company is actually a dba of American Neighborhood Mortgage Acceptance Company, or AnnieMac for short.

They are an approved seller/servicer with Fannie Mae, Freddie Mac and Ginnie Mae, meaning they can offer conforming loans and government-backed mortgages, as well as service them.

At the moment, they are licensed to do business in 48 states, with Alaska and Hawaii the only exceptions.

They appear to do the most business in their home state of New Jersey, which accounts for about 30% of total volume, along with neighboring Pennsylvania, which holds another 15% or so.

But they’re also growing out west and making a name for themselves in states like California and Arizona as well.

If you prefer to do business in person, they do have some physical branches in Florida, Maryland, and New Jersey.

How to Apply for a Mortgage with LoFi Direct

  • To get started simply visit their website and click on Apply (or call them directly)
  • You’ll be prompted to create an account for their online Loan Portal
  • A loan originator will get in touch to walk you through the digital application
  • All processing and underwriting is completed in-house for quick turnaround times

As noted, LoFi Direct believes in a hybrid approach that combines the latest technology with real human beings, seeing that getting a mortgage can be complicated.

But you can still get started on your own by visiting their website and clicking on “Apply.”

From there, you’ll be prompted to create an account, which will also serve as your Loan Portal once your application is submitted.

A loan officer will jump in to help once you’re signed up to discuss loan options, mortgage rates, and what to expect from their process.

Most tasks can be completed electronically, including the application itself, the signing of disclosures, and the scanning/uploading of paperwork.

The good news is they’re an approved seller with Fannie Mae, Freddie Mac and Ginnie Mae, and all processing and underwriting is handled in-house.

This means they can get things done quickly without having to send your file elsewhere, or seek permission from an outside investor.

You can also download the AnnieMac Home Mortgage smartphone app (which I believe works with LofiDirect) and track your loan progress on the fly, 24/7.

Home Loan Programs Offered by LoFi Direct

  • Home purchase loans
  • Refinance loans: rate and term, cash out, and streamline
  • Home renovation loans
  • Conforming loans
  • Jumbo loans
  • FHA loans
  • VA loans
  • USDA loans
  • Fixed-rate and adjustable-rate options available

LoFiDirect offers a ton of different loan options, whether you’re a first-time home buyer or a seasoned homeowner looking to purchase a vacation home or refinance an existing investment property.

If you already own a property, you can get a rate and term refinance or a cash out refinance. They also offer home renovation loans, such as Fannie Mae HomeStyle and the FHA 203k.

You can get a conforming loan backed by Fannie/Freddie, a jumbo loan that exceeds the conforming limit, or a government-backed loan, such as a VA loan.

Both fixed-rate and adjustable-rate options, with a variety of different loan terms to choose from like a 15-year fixed or 5/1 ARM.

LoFi Direct Mortgage Rates

For one reason or another, LoFi Direct doesn’t put its mortgage rates on its own website, so it’s not totally clear how competitive they are.

However, they do advertise their rates on third-party sites, including Zillow’s Mortgage Marketplace.

From what I saw, they were offering one of the lowest interest rates on the platform, with nearly the lowest mortgage APR (which factors in lender fees).

So there is hope that they can deliver some of the best rates out there, assuming your loan scenario fits their guidelines.

It’s also unclear what lender fees they charge, such as a loan origination fee or separate charges for things like underwriting and processing.

But the quotes I saw on Zillow were promising with regard to both rates and fees. Just be sure to speak with a loan officer to get a solid estimate and take the time to compare lenders as well.

LoFi Direct Reviews

On Zillow, LoFi Direct has a stellar 4.83-star rating out of a possible 5 from nearly 1,400 customer reviews, which is impressive given the volume of feedback.

Also be sure to check out their individual loan officer reviews, as quality can vary at a large company. Then if you find someone who stands out, you can request that person specifically.

Over at SocialSurvey, it’s a similar 4.51-star rating from about 200 reviews, with many of them perfect 5-star ratings.

Additionally, the company has a 4.4-star rating from 50 reviews on Google, and a 4.2/5 from about 25 reviews on LendingTree, with an 84% recommended score.

Veterans may qualify for a $0 down VA loan

Lastly, while the company isn’t an accredited business with the Better Business Bureau, they do sport a perfect ‘A+’ rating based on complaint history.

In summary, LoFi Direct seems to offer low mortgage rates and fees, which their name might imply, and their self-described mission is to provide industry-leading customer service.

They also have plenty of loan programs to choose from, so they could be a good choice for both a prospective home buyer and a current homeowner looking to refi.

LoFi Direct Pros and Cons

The Pros

  • Can apply directly from their website in minutes
  • Offer a digital home loan process and online borrower portal
  • Appear to offer low rates
  • Free smartphone app
  • Lots of loan programs to choose from
  • Excellent customer reviews across all ratings sites
  • A+ Better Business Bureau rating
  • Helpful guides, mortgage calculators, and mortgage glossary on their website
  • Physical branches in several states
  • May service your loan as opposed to transferring it

The Cons

  • Not licensed in Alaska or Hawaii
  • Do not publicize mortgage rates or lender fees
  • Do not offer second mortgages

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