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Newrez mortgage review 2024
The Yahoo view: Newrez’s strongest features are its 45-day mortgage rate lock program and 0.50% closing cost discount if you use a real estate agent through the company. However, its customer satisfaction ratings are well below average — among both lenders and mortgage servicers.
Newrez is a national mortgage company that originates loans in all 50 states and several U.S. territories. The lender offers a variety of types of mortgage loans, including conventional, FHA, VA, and home equity loans, as well as purchase, refinance, and investment property mortgages.
Unfortunately, Newrez isn’t known for its customer service. According to J.D. Power, the company ranks last in customer satisfaction among mortgage participating originators in its 2023 survey and below average in mortgage servicing. (Its servicing arm, Shellpoint Mortgage, also has a class action lawsuit currently filed against it regarding illegal inspection fees. This case is still ongoing, though.)
Read more: Best mortgage lenders for first-time home buyers
In this article:
Key benefits
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Newrez offers a wide variety of loan products, including conventional, FHA, and VA loans, as well as home equity loans and investment property loans.
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Buyers can get a closing cost credit worth 0.50% of their home’s purchase price by using a Newrez partner real estate agent.
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The lender allows for 45-day rate locks, and if rates drop, you can re-lock at the lower rate for no extra cost with a float-down option.
Need to know
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Newrez doesn’t offer USDA loans, jumbo loans, or HELOCs.
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The lender has no physical branches. You can apply online or call a loan officer over the phone to start your application.
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The company ranks below average in customer satisfaction, both in mortgage servicing and origination.
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According to government data, conventional loans account for the bulk of Newrez’s loan volume, followed by FHA loans.
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The lender recently acquired Caliber Home Loans. Shellpoint Mortgage Servicing is also a part of the Newrez organization.
Loan types offered
Note: You cannot get a USDA loan directly from Newrez — it only offers USDA loans through its wholesale lending business.
Newrez mortgages for FHA loan home buyers
Newrez offers FHA loans for both purchasing a home and refinancing an existing mortgage. In fact, FHA loans account for a little over a quarter of the company’s total mortgage origination volume, according to 2023 Home Mortgage Disclosure Act data. FHA loans are Newrez’s second-most popular mortgage product behind conventional loans.
Learn more: Best FHA lenders
Newrez mortgages for VA loan home buyers
For veterans, military members, and their families, Newrez also offers VA loans — a type of mortgage backed by the U.S. Department of Veterans Affairs.
Newrez offers both VA purchase loans and VA refinances, including IRRRLs — Interest Rate Reduction Refinance Loans. These are also known as VA streamline refinance loans, and they allow you to refinance easily from one VA loan to another (and with less paperwork). In total, VA loans account for about 12% of all Newrez’s mortgage volume.
Read more: Best VA loan lenders
Newrez for home equity lending
For homeowners looking to take cash out of their houses, Newrez offers home equity loans, which allow you to borrow from your home equity and get a lump-sum payment in return. These are a type of second mortgage and come with a second monthly payment — in addition to the payment on your first mortgage.
Newrez also offers cash-out refinancing, an alternative way to access your home equity. With this type of mortgage refinance, you replace your current mortgage loan with a larger one and get the difference back in cash. (Keep in mind: It also replaces your loan’s term and interest rate, so this might not be wise if you have an ultra-low, pandemic-era interest rate on your current loan.)
Newrez does not have home equity lines of credit (HELOCs).
Newrez mortgage rates
Newrez is not very up-front with its interest rates. Its website has no advertised or sample rates available, and to get a rate 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 for all Newrez loan types and programs.
Read more: 5 ways to get the lowest mortgage rates possible
Applying for a mortgage with Newrez
You can apply for a Newrez mortgage online using the lender’s digital application. This goes for purchase loans, refinances, and home equity loans. When applying, you’ll need to provide personal information, details about the home you’re purchasing, your down payment amount, and other financial details.
Newrez home-buyer tools and calculators
Newrez offers a wide variety of online tools and resources for borrowers. You’ll find the following types of mortgage calculators:
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Monthly mortgage payment calculator
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Refinance calculator that shows how much you could save by refinancing
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Loan amount calculator to reveal how much house you can afford
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Rent vs. buy comparison
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Loan term comparison
Newrez also has a deep library of resources, FAQs, and blog posts.
Dig deeper: Use Yahoo Finance’s free mortgage payment calculator
How Newrez compares to other mortgage lenders
Newrez mortgages vs. Freedom Mortgage
Newrez and Freedom Mortgage are both national mortgage lenders, but the two vary slightly in product offerings. While Newrez offers home equity loans and interest-only mortgages, Freedom does not. However, it does have USDA mortgages for rural home buyers — something Newrez lacks.
Both companies rank low in customer satisfaction, and neither website shows advertised or sample interest rates to compare. You can apply online with both mortgage lenders, as neither has physical branch locations.
Newrez mortgages vs. Pennymac mortgages
Pennymac offers all the same mortgage options as Newrez, with the addition of USDA and jumbo loans. Pennymac rates much higher in customer satisfaction and offers an interest rate buydown option, whereas Newrez does not. Pennymac is also more up-front about its mortgage rates, offering sample rates right on its homepage.
If you’re interested in a type of mortgage loan both lenders offer, try applying for preapproval with both to see which offers the better deal.
Newrez mortgage FAQs
Is Newrez a legitimate mortgage company?
Yes, Newrez is a legitimate mortgage company that originates and services mortgage loans throughout the U.S. The Better Business Bureau has accredited the company, giving it an A+ rating.
What is the lawsuit against Newrez mortgage?
Newrez currently faces a class action lawsuit in Maryland stemming from claims that Newrez charged illegal inspection fees to homebuyers in the state. The suit was technically filed against Shellpoint Mortgage, a subsidiary of Newrez, and it has not been resolved yet.
What is the old name for Newrez?
Newrez used to be known as New Penn Financial. The company also acquired Caliber Home Loans in 2021; its loans have since been rolled into the Newrez business.
How are Newrez mortgage reviews?
Newrez mortgage reviews tend to be low. The company ranks low in J.D. Power’s customer satisfaction rankings and has 1.17 stars out of 5 with the Better Business Bureau. The company also has 1.2-star rating on Trustpilot. The majority of customers on the site gave Newrez just one star.
This article was edited by Laura Grace Tarpley
