LendingTree Refi Loans Review
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Need access to quick cash? Maybe you want to lower your monthly mortgage payment or slash the amount of interest you pay on your home loan. You can do all this by refinancing your current mortgage into a new one. Mortgages are a huge part of personal finance, and the right way to approach them is to be aware of all the available options.
By shopping through the LendingTree online lender network, you can find the right loan products and a mortgage company to refinance your mortgage at the lowest cost.
Is a LendingTree refi loan right for you? Our LendingTree review focuses on refinance and is a detailed mortgage review to help you decide whether it is an ideal choice.
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What is a LendingTree refinance loan?
When you refinance your mortgage loan, you swap it out for a new one. Homebuyers typically refinance for one of three reasons.
They might want to switch their current loan to a lower interest rate. This will reduce their monthly mortgage payments. They might need cash to pay for a major kitchen remodel, cover their child’s college tuition costs, or pay off high-interest-rate credit card debt. To do this, they’d apply for a cash-out refinance, refinancing to a new loan for more than what they owe on their current mortgage. Maybe a homeowner owes $200,000 on a mortgage. That homeowner could refinance to a new mortgage of $280,000 and receive the extra $80,000 in cash.
Other homeowners might want to change the term of their current loan or look for new loan options. Homeowners with a 15-year, fixed-rate mortgage might refinance to a 30-year mortgage, or ones with adjustable-rate mortgages could look to lock in a lower fixed rate. This would reduce their monthly payments. Others might switch from a 30-year mortgage to a 15-year version. This would reduce the amount of interest they pay over the life of their loans.
To qualify for a refinance, homeowners need equity in their home. Equity is the difference between what homeowners owe on their mortgages and what their homes are worth. Say your home is worth $300,000, and you owe $200,000 on your mortgage. You have $100,000 in equity.
Most lenders require that you have at least 20% equity in your home before they approve you for a refinance. When your refinance closes, your lender will repay your old mortgage loan. You’ll then pay back your new mortgage with regular monthly payments with interest.
One of the challenges in refinancing a mortgage is finding the right lender. You can refinance your mortgage with any lender licensed to do business in your state. One way to find the right lender? You can use LendingTree.
LendingTree does not originate mortgage loans directly. It also does not originate mortgage loan refinances, home equity loans or home equity lines of credit (HELOCs).
LendingTree, instead, acts as an online loan marketplace that homeowners can use to search for lenders. Through the different lenders, you will find one you could work directly with to close your mortgage refinance.
Why do millions of Americans trust LendingTree?
- 300+top-rated lenders
- $260Bin funded loans
- 111M Americans served
How does a LendingTree refinance loan work?
When ready to start a refinance application process, log onto LendingTree’s online lender marketplace. LendingTree says that it works with more than 300 lenders spread across the country.
When you submit your financial and personal information to LendingTree, the company will send it to these lenders.
Lenders can then bid on your business. LendingTree will send up to five loan offers from lenders who want to refinance your mortgage. You can then see the rate information and compare the fees, interest rates, and APR – or annual percentage rate – these lenders charge. APR is a key figure: It measures the entire cost of a refinance, including both the interest rate and any origination fees that your lender charges.
To start searching LendingTree’s lender marketplace, choose the type of loan you want, select refinance here, and you will be taken to the company’s refinance home page. Once you do, LendingTree will ask why you want to refinance:
If you want to refinance for a lower interest rate, click the first box. If you are interested in a cash-out refinance, click the second. If your main goal is a lower monthly payment and get the best rates, click the third box. And if you want a longer or shorter loan term, click the fourth.
Choosing one of these options takes you to this page:
Tell LendingTree what type of property you are refinancing. After you do this, this next page will appear:
If you live in your home full-time, click “primary home.” If you use your home as a vacation or second home, click “secondary home.” If you rent the home for much of the year, click “rental property.”
Once you choose, you’ll be taken to the next page. Enter your property’s zip code and click the “Continue” button. Next, LendingTree will ask you to estimate the home value.
Use the slider to do this, then click “Continue.”
You’ll need to tell LendingTree how much you still owe on your mortgage. The lenders working with LendingTree need to know this to calculate the estimated amount of equity you have in your home. They want to make sure you have enough to qualify for a refinance.
Tell LendingTree if you have a second mortgage. If you do, that will impact how much equity you have in your home.
LendingTree wants to know if you will be taking a cash-out refinance. If you aren’t, move the slider so that the amount of cash you want to borrow is $0. If you do, use the slider to tell LendingTree how much additional cash you want to borrow. Then click “Continue.”
Here, LendingTree will ask you to estimate your three-digit credit score. You’ll need the minimum credit score to qualify for a new loan with an interest rate low enough to make refinancing worth it. How high your score needs to be for a refinance varies. But LendingTree says most lenders in its network have a minimum FICO credit score requirement of 620.
After this point, LendingTree will ask you questions about your finances, including your monthly income and estimated debts. They’ll also ask for your birthdate and address.
After you provide this information, LendingTree will send it to its network of lenders. You will then receive up to five offers from licensed mortgage lenders to close your area's refinances.
Once you choose a lender with which to work, you will no longer work with LendingTree. That lender, instead, will close your mortgage refinance.
How much does a LendingTree refinance cost?
Searching for a lender through LendingTree’s network is free. LendingTree never charges you when it sends your information to its lenders. You will, though, pay once you select a lender and work with that lender to close your refinance.
The amount you pay for a refinance when working with a lender from LendingTree will vary. However, LendingTree says that homeowners should expect to pay 2% to 6% of their loan amount in closing costs, the fees that lenders and other third-party companies charge to close a mortgage refinance.
If you are refinancing to a $250,000 mortgage, you could expect to pay between $5,000 and $15,000 in closing costs.
Why do millions of Americans trust LendingTree?
- 300+top-rated lenders
- $260Bin funded loans
- 111M Americans served
Features of a LendingTree refinance
You can choose a traditional or cash-out refinance
LendingTree gives you the option of applying for a traditional refinance, in which you swap your current mortgage for one with a different term or lower interest rate, or a cash-out refinance, in which you also receive a lump-sum payment of cash that you can spend however you’d like.
You’ll have options
The main advantage of using LendingTree to search for a refinance is that you can choose from several lenders. LendingTree will send your information to its network of more than 300 lenders. You’ll then choose from up to five offers. You can look for lenders that charge the lowest mortgage rates and fees.
You can refinance the mortgage on different home types
The lenders working with LendingTree close refinances on various property types, including primary homes, second homes, rental properties, multifamily investment properties, condo units, townhomes, and cooperatives.
You can tap your home’s equity in other ways
You don’t have to rely solely on a cash-out refinance if you are looking for cash. Lenders in LendingTree’s network also offer home equity loans and lines of credit, two other ways to borrow against the equity you’ve built in your home.
Who is a LendingTree refinance right for?
People with limited time to shop around. The best way to get the lowest interest rate and fees when applying for a home loan is to shop around with lenders. LendingTree makes this easy. Instead of contacting several lenders alone, you can submit your financial information to LendingTree, which will then send it to the hundreds of lenders in its network.
People with fair or bad credit. You don’t need an excellent or very good credit score to connect with a LendingTree network lender. LendingTree says that most lenders it works with require a minimum FICO credit score of 620 from borrowers. That number is lower than the average credit score in the United States.
People comfortable with shopping online. LendingTree is a good fit for borrowers who don’t mind doing most of their comparison shopping online. You won’t talk to lenders in person before they make their offers. If you’re comfortable with that, LendingTree can save you time while hunting for a refinance.
People with enough equity in their homes. It varies by lender, but you’ll typically need at least 20% equity in your home to qualify for a traditional refinance. If you are applying for a cash-out refinance, you might need more equity, depending on how much money you want to borrow.
Who should not apply for a LendingTree refinance?
Those with damaged credit. If your credit score is under 620, you might struggle to find a lender in LendingTree’s network to make you an offer. Even if you do receive an offer, the interest rate that lenders offer you might be so high that refinancing isn’t worth it.
Those with interest rates that are already low. If your interest rate is already low, you might not be able to qualify for a rate low enough with your new loan to make a refinance worthwhile. Remember, you’ll need to save enough money each month to quickly pay off your new loan’s closing costs. That might not be possible if you already have a low interest rate.
Those who haven’t paid off enough of their primary mortgage. If you haven’t paid off enough of your mortgage to generate at least 20% equity, you probably won’t qualify for a refinance from the lenders in LendingTree’s network. It might make sense to wait until your home either jumps in value or you pay more of your mortgage. That will build more equity in your home.
Why do millions of Americans trust LendingTree?
- 300+top-rated lenders
- $260Bin funded loans
- 111M Americans served
Pros and cons
Pros
- LendingTree doesn’t charge to use its service.
- LendingTree can instantly send your financial information to more than 300 lenders.
- You can also search for home equity loans and HELOCs through LendingTree’s network.
Cons
- LendingTree doesn’t originate loans. Once you accept an offer, you’ll work with that lender, not LendingTree.
- Loans closed with a lender from LendingTree’s network aren’t free. These lenders charge closing costs.
- You’ll need to meet certain credit score and debt-to-income levels to receive offers from LendingTree’s network of lenders.
LendingTree vs. the competitors
Company | Services offered | Requirements for a refinance | Costs of a refinance |
LendingTree | LendingTree does not originate refinances directly. It is an online marketplace that shares your information with more than 300 lenders. You can then choose from quotes from these lenders. | LendingTree says you’ll typically need a credit score of at least 620 to qualify for a mortgage refinance from one of its lenders. | Lenders working with LendingTree typically charge 2% to 6% of your loan amount in closing costs. |
Wells Fargo | Wells Fargo is a national lender that directly originates mortgage refinances. The company also offers home equity loans and home equity lines of credit. | You’ll typically need a FICO credit score of at least 620 to qualify for a refinance from Wells Fargo. The company says that if your score is 760 or higher, you’ll usually qualify for the lowest rates and fees. | Like most lenders, Wells Fargo will charge from 2% to 5% of your loan amount. |
Rocket Mortgage | Rocket Mortgage is another direct lender. You’d apply directly with Rocket Mortgage – through its online application – to apply for a refinance. | Rocket Mortgage typically requires borrowers to have a credit score of 680 or higher for a refinance. | Rocket Mortgage charges 2% to 6% of your loan amount in closing costs. |
Wells Fargo
Unlike LendingTree, Wells Fargo is a national mortgage lender. This means that it originates mortgage refinances. You’d apply directly to Wells Fargo to close your refinance. Wells Fargo’s credit requirement is typical of most mortgage lenders: You’ll usually need a FICO credit score of at least 620 to qualify for a mortgage refinance from Wells Fargo. Your recurring debts should usually equal no more than 43% of your gross monthly income. Wells Fargo says that if your credit score is 760 or higher, you’ll typically qualify for a lower interest rate. Wells Fargo’s closing costs run from 2% to 5% of your new loan amount.
Rocket Mortgage
Another direct lender, Rocket Mortgage, does most of its business online. You can apply for a Rocket Mortgage refinance from the company’s website or app. You’ll usually need a FICO credit score of 680 or higher to qualify for a Rocket Mortgage refinance. Rocket Mortgage also prefers that monthly recurring debts equal no more than 50% of your gross monthly income. You can expect to pay closing costs ranging from 2% to 6% of your new loan’s amount.
The bottom line
Refinancing your mortgage can lower your monthly payment, reduce the amount of interest you pay, or bring you a chunk of cash that you can spend however you’d like. And if you’re hunting for a mortgage provider that will charge you the lowest fees? Searching through LendingTree’s network of more than 300 lenders could be a smart financial move.
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Writer
Dan Rafter is a freelance writer who has more than 20 years experience covering personal finance. He's written for the Chicago Tribune, Washington Post, Bankrate, CreditCards.com, Rocket Mortgage, NortonLifeLock and several others.
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