When you’re diving into the home loan market, you might encounter New American Funding (legally known as Broker Solutions) and Rocket Mortgage (formerly Quicken Loans). These two private, non-bank mortgage lenders are top contenders, but how do they stack up? Let’s break it down.
Performance face-off
In 2023, Rocket Mortgage was a powerhouse, churning out 289,000 loans worth $76.26 billion. They were the second-largest mortgage lender in the U.S., with a colossal focus on refinancing—39% of their loans were for that purpose, even as rates soared in 2023.
So it begs the question: were their salespeople just tricking people? Or were their rates shockingly high to begin with? We’re a bit stumped…
New American Funding originated 33,000 loans totaling $9.36 billion. They’re smaller but have a strong foothold, especially with a significant chunk of FHA loans—34% compared to Rocket’s 22%.
Tomo Mortgage, founded in 2020 by two former Zillow execs, we’re the new kid on the block, shaking up the home buying game. We use tech to automate a lot of the home buying process, and because we cut all these costs we are able to charge low rates, zero lending fees, and actually close on time.
The breakdown
| Lender | New American Funding | Rocket Mortgage | Tomo Mortgage |
| Founded | 2003 | 1985 | 2020 |
| Lender Fees | $4,400 per loan* | $4,700 per loan* | $0 |
| Average Loan Size | $493,000 | $264,00 | $376,000 |
| On-Time Close Rate | Not reported – have a “On Time Closing Guarantee” | Not reported | 98% |
| Customer Reviews | 4.2 stars on Consumer Affairs 4.91 stars on Zillow | 3.8 stars on Consumer Affairs | 5.0 stars on Consumer Affairs 4.95 stars on Zillow |
| Employee Reviews | 3.6 stars on Glassdoor | 3.5 stars on Glassdoor | 4.1 stars on Glassdoor |
How to judge mortgage lenders
- Interest rates: Don’t get fooled by flashy numbers. Always compare the “par rate” with 0 points and check out the APR (Annual Percentage Rate). This is your real cost of borrowing, so get the full picture before signing up.
- Lender fees: Both New American Funding and Rocket Mortgage hit you with fees—around $4,400 and $4,700, respectively. Tomo Mortgage? Zero fees. That’s over $4,000 in savings right there, and we’re proud of it.
- On-time close rate: This is how often lenders actually close on the promised date. Industry standard? About 40%. But Tomo Mortgage? We’re flexing a 98% on-time close rate. Other lenders don’t even bother to share this info, but it’s a huge deal.
- Pre approvals: While some lenders don’t take the time necessary to prepare a strong pre approval and offer letter, this is critical to making a successful offer on a new home. Tomo Mortgage’s online pre approval only takes 15 minutes, and it includes a soft credit check.
- Customer satisfaction: If you’re finding it tough to trust what lenders are telling you, one of the best ways to gauge their reliability is by looking at reviews from people who were once in your shoes. Did those customers have a smooth experience with the lender? What went right—or wrong?
- Employee reviews: Employee reviews may not appear to have a direct impact on your loan offering, but comparing how employees rate their workplace can give you valuable insights into a company’s morals, reliability, transparency, and more.
So, New American Funding or Rocket Mortgage?
If you value a personalized loan experience and higher customer satisfaction, New American Funding is worth considering. They excel with FHA loans and have better customer reviews. However, they come with fees that could add up.
But for most people the most important factor is the rate. We were curious to see how Tomo Mortgage’s APR (annual percentage rate) stacked up against Rocket Mortgage and New American Funding, so we looked at three Zip codes for two weeks on Nerdwallet (where we could compare apples-to-apples on loan scenarios). Using the median home sale price for each location, a credit score range of fair at 680, and with putting 5% down.
In this scenario, from August 7 to August 20, 2024, Rocket’s average APR was 7.64%, New American Funding’ s was 6.67% while Tomo’s average APR was 6.26%.
So, we’re obviously biased, but we’d say don’t choose either. Tomo Mortgage has lower rates, lower fees, and better reviews. It’s a pretty obvious choice.
*sources: Business Insider Mortgage Reviews: New American Funding, Rocket Mortgage, and HMDA data from 2023
If you’re ready to start your journey to homeownership, get pre approved with Tomo Mortgage today.