LoanDepot stands out with its comprehensive loan options, multiple customer service channels, and a Lifetime Guarantee program for refinancing. Bank of America Mortgage offers competitive interest rates and a fully digital application process, but customer service reviews are mixed, and email support is not available. LoanDepot's transparency in closing costs and strong customer reviews make it a potentially more appealing choice for borrowers.
| Attribute | LoanDepot | Bank of America Mortgage |
|---|---|---|
| Interest Rates | Not publicly displayed; rates close to national average | 30-year fixed: 6.750% (APR 6.946% to 6.954%), 15-year fixed: 5.750% (APR 6.088% to 6.109%), 5y/6m ARM variable: 6.375% (APR 7.056% to 7.182%) |
| Loan Options | Fixed-rate mortgages (10, 15, 20, and 30-year terms), Adjustable-rate mortgages (ARMs) (3, 5, 7, and 10-year terms), Conventional mortgages, Jumbo mortgages, FHA loans, VA loans, USDA loans, FHA 203(k) loans, Home equity loans, HELOCs, Refinancing options | Conventional, FHA, VA, Jumbo loans, Fixed-rate mortgages (15, 20, and 30-year terms), Adjustable-rate mortgages (ARMs) |
| Closing Costs | Average origination fee: $4,909 (2023); Total average loan cost: $9,896 (3.44% of loan amount); Closing costs range from 2% to 5% of the total loan amount. | Typically range from 3% to 5% of the loan amount. Includes points, lender fees, third-party fees, prepaid taxes and insurance, and escrow account funds. |
| Down Payment Requirements | Conventional mortgages: As low as 3%; FHA loans: As low as 3.5% (10% if credit score between 500-579); VA loans: 0%; USDA loans: 0%; AccessONE+ program: 1% in specific census tracts; AccessZERO program: 0% (down payment assistance as a second mortgage) | As low as 3% for conventional loans, 3.5% for FHA loans. VA loans may not require a down payment. Affordable Loan Solution mortgage with a down payment as low as 3%. |
| Credit Score Requirements | Conventional mortgages: Minimum 620; FHA loans: Minimum 500-580 (580+ for 3.5% down payment); VA loans: Minimum 620; Jumbo loans: Minimum 700; Personal Loans: Minimum 660 | At least 620 for conventional loans, 580 for FHA loans. Best rates for scores of 740 or higher. |
| Debt-to-Income Ratio Limits | Likely 40% or lower for personal loans | In 2023, 49.7% had a DTI below 40%, while 31.9% had a DTI above 43%. |
| Online Application Process | Digital mortgage experience with 'mello' tech platform; streamlines document uploads, income verification, and communication; online application and quick preapproval | Fully digital mortgage experience. Existing customers can link their accounts to simplify the application process. |
| Customer Service Quality | Blends automation with human support; phone support and personal guidance from licensed loan officers; A+ rating with Better Business Bureau; reachable in person, phone, email, online form, or text message | Via phone during specific hours. No email support, suggest using Facebook or X (Twitter). Customer reviews range from decent to poor. |
| Loan Servicing | Typically services its own loans | Satisfaction can vary after finalization. |
| Pre-Approval Speed | Quick preapproval through online and mobile-friendly process | Can be obtained quickly online, often in minutes. |
| Refinancing Options | Rate-and-term and cash-out refinancing options; Lifetime Guarantee program waiving lender fees and reimbursing appraisal costs for future refinances | Rate-and-term and cash-out refinancing options. |
| Available Loan Amounts | Mortgages up to $2 million; Home equity loans: $25,000 to $250,000; Minimum loan amount not publicly disclosed | Details may vary. |
| Ratings | A+ rating with Better Business Bureau | Not available |