Founded in 2020 by former Zillow executives, Tomo Mortgage has been earning a lot of attention for its competitive rates, no fees, and streamlined digital experience. It was ranked Best Online Lender 2025 by Bankrate, earning 4.9-star customer reviews.
But a lot of homebuyers still have questions. You see low rates and $0 fees, and it can look too good to be true. It’s reasonable to expect there to be a catch.
The secret is that they use AI to automate a lot of the back-end underwriting process, which makes things faster, more accurate, and a lot less expensive. By passing that savings onto the customer, they don’t need to charge $2,000 or more for things like “processing” and “origination,” and they don’t need to artificially add fees to make their rates competitive on paper. Learn more about Tomo Mortgage’s “low rates, no gotchas” approach.
See today’s mortgage interest rates on TrueRate.
Is Tomo legit? How Tomo Mortgage compares to other lenders
| Headquarters | New York, NY |
| Website | tomo.com |
| Rate | 0.30% lower than the median rate, on average |
| Lender fees | $0 |
| Savings after 1 year, compared to the median interest rate | $1,340 |
| Savings after 10 years, compared to the median interest rate | $10,047 |
For a $400,000 mortgage, Tomo Mortgage’s rates—about 0.30% lower than the market median—and $0 in added lender fees result in borrowers paying approximately $1,340 less in the first year and around $10,047 less over 10 years compared to the median lender rates and fees.
What customers are saying
On the whole, reviews about Tomo are positive—4.9-stars on Bankrate, 4.91 stars on Zillow. Most home buyers praise the company for its low rates and fee-free structure, noting substantial savings compared to traditional lenders. Others appreciate the straightforward digital process.
However, some customers have reported challenges with communication. Instances include delays in responses and difficulties in obtaining clear information during the loan process.
How to compare mortgage lenders
Interest rates. Comparing rates between lenders isn’t always straightforward. Many promote low headline rates that require paying “points” upfront to buy down the interest rate. To make a true comparison, focus on the par rate (0 points) and the APR, which reflects both the interest rate and any lender fees. Even small differences can translate into significant savings over the life of the loan.
Lender fees or loan origination fees. Many lenders charge fees that add thousands to the cost of a loan. It’s important to look at both the rate and the fees together to understand the true cost of borrowing. For a $400,000 mortgage, avoiding even a $1,000 fee could contribute to meaningful savings in the first year and over the long term.
On-time close rate. Most lenders do not publicly share their on-time close rates. However, it’s a critical factor—especially if your home contract has tight deadlines. Asking about their process for meeting close dates, including underwriting and document review timelines, can give you more confidence when choosing a lender.
Pre-approval and offer letters. Some lenders offer fast pre-qualifications that may not be fully underwritten, which can weaken your offer in competitive markets. It’s important to ask whether a lender’s pre-approvals are fully underwritten and how credible their letters are when presented with an offer.
Customer satisfaction. If detailed customer review data isn’t readily available, check third-party review sites or ask the lender for references. It’s important to understand how they handle communication, responsiveness, and issue resolution throughout the loan process.
Employee reviews. Company culture often influences how clients are treated. A lender with strong employee satisfaction typically delivers better service, more organized processing, and a smoother overall experience for borrowers.
To better understand how we compare mortgage rates fairly, see our TrueRate Methodology.
If you’re ready to start your journey to homeownership, get pre-approved with Tomo Mortgage today.