Newrez, formerly known as New Penn Financial, is a residential mortgage company based in Fort Washington, Pennsylvania. Licensed to originate mortgages nationwide, the company offers a number of different loan products. These include both fixed-rate and adjustable-rate mortgages, as well as FHA, VA, USDA, refinancing and investment property loans. This allows customers to choose exactly what kind of loan works best for them from a singular lender.
Newrez is an entirely online mortgage lender. That means that you won't be able to access any branches or other physical locations to talk to a Newrez mortgage representative in person. However, the company has a robust website that offers descriptions of all its loans, calculators and educational resources. You won't be able to access rates without entering your information, though.
Does Newrez Operate in My Area?
As a nationwide mortgage company, Newrez is licensed to conduct business in all 50 states, including the District of Columbia. Again, the company does not operate any branches.
What Kind of Mortgage Can I Get With Newrez?
Fixed-rate mortgages: The most common type of mortgage, a fixed-rate mortgage has a set interest rate for the life of the loan. Loan terms at Newrez can range from 10 to 30 years.
Adjustable-rate mortgages: Also called ARMs, adjustable-rate mortgages start out with a fixed rate before adjusting to market rates after a set period. These periods usually last three to seven years, with rates changing typically on an annual basis afterwards.
FHA loans: Insured by the Federal Housing Administration (FHA), these special mortgages require a minimum 3.5% down payment and may be more accessible to borrowers with past credit issues.
VA loans: Backed by the Department of Veteran Affairs (VA), these loans are intended to help qualified military professionals, veterans, and reservists buy homes. Although borrowers must pay a VA funding fee, oftentimes banks do not require a down payment for this type of loan and may offer a lower interest rate than with a conventional loan product.
USDA loans: Offered only in designated rural areas, the Department of Agriculture (USDA) provides these loans to maintain and revitalize more rural parts of the country. Special terms may be offered, such as 100% financing and higher flexibility for borrowers with lower or poorer credit scores.
What Can You Do Online With Newrez?
Before applying for a mortgage at Newrez, the company's website offers several calculators to help you estimate your monthly payments. Its mortgage calculator can help you break down potential mortgage payments for easy understanding, and the refinancing calculator can demonstrate how much you could save with a refinanced mortgage at a lower interest rate. Newrez also offers a helpful calculator for you to visualize costs of renting versus buying, as well as a calculator to estimate the impacts of different loan terms and amounts.
You can apply directly for a mortgage online with Newrez. The application process is straightforward and easy, but you have the option of calling to speak with a loan officer if you prefer.
You can also manage your loan through the Newrez mobile app. Potential borrowers can upload all documents required to the app, track their loan applications and later manage payments from their phones. However, the Newrez app has fared poorly in terms of user ratings, and it appears to only have basic functionality. On the Apple app store, users have rated the app at 2 stars out of 5, while Android users have rated it only slightly better at 2.2 stars out of 5.
Would You Qualify for a Mortgage From Newrez?
Most lenders ask for a FICO score of at least 620 for a conventional loan, while certain government-backed programs allow for borrowers with less-than-fair credit. Newrez is no exception to this rule. Other factors that lenders like Newrez consider include your debt-to-income (DTI) ratio and the affordability of your desired home. Generally speaking, a DTI ratio of 43% or less is preferred by lenders.
Many government-backed mortgages will also require the borrower to pay a private mortgage premium (PMI), as will conventional loans with down payments of less than 20%. Depending on the loan product, some qualified buyers may not need to put any money down at all.
What’s the Process for Getting a Mortgage With Newrez?
You can start the process by filling out a mortgage application online through the company’s website. Completing the application form will guide you through a comparison of loan options and the requirements needed to move your application forward. According to the Newrez website, the prequalification process is very simple, as is the case with most online lenders. However, you always have the option of speaking to loan officer over the phone.
A professional will appraise your property once your application has been received and your offer accepted. Once your loan has been processed and fully approved, it will be underwritten and your closing will be scheduled.
How Newrez Stacks Up
Newrez operates nationwide and offers a variety of mortgage options. Many borrowers will likely find a product that works well for their circumstances, and the company makes it easy to apply for and manage loans online.
On the other hand, the company doesn't have a user-friendly mobile app, which would otherwise appeal to consumers who enjoy the ease and convenience of using their smartphone to manage their finances. And for customers who prefer a more conventional, face-to-face interaction, the company does not have any physical locations where a borrower could find a loan officer in person.
Homebuying Tips
- A financial advisor can help ensure that the purchase of your home is accounted for in your long-term financial plan. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
- When you're in the hunt for a home loan, it's important to shop around for the best mortgage rates. Lucky for you, SmartAsset has a rate comparison tool to help you sort out your options.
- Whether you're buying or refinancing, closing costs are an important but often overlooked expense associated with getting a new mortgage. To calculate approximately how much you can expect to pay, give SmartAsset's closing costs calculator a try.
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