Royal United Mortgage may have a regal-sounding name, but its lending practices have been anything but noble. Over the past two years, this lender has maintained some of the highest interest rates in the industry, landing it among the worst 30 percent of mortgage providers nationwide. Customers frequently report aggressive sales tactics, excessive fees, and a frustratingly slow loan process, making Royal United Mortgage a risky option for homebuyers seeking fair financing.
See today’s mortgage interest rates on TrueRate.
How Royal United Mortgage compares to other lenders
| Headquarters | Indianapolis, Indiana |
| Website | royalunitedmortgage.com |
| Rate | 0.36% higher than the median rate |
| Lender fees | $1,899 (Royal United Mortgage loan median) |
| Added cost after 1 year, compared to the median interest rate | $791 |
| Added cost after 10 years, compared to the median interest rate | $11,261 |
| Added cost after 1 year (vs. Tomo Mortgage) | $3,370 |
| Added cost after 10 years (vs. Tomo Mortgage) | $22,445 |
For a $400,000 mortgage, Royal United Mortgage’s above-market rates and $1,899 in fees would result in borrowers paying roughly $791 more in the first year and over $11,260 across 10 years compared to a typical lender. And if you’re planning to stay in your home long-term, the opportunity cost only grows—higher rates mean thousands more in interest that could have been put toward equity, renovations, or savings. Be sure to review multiple loan estimates to understand the true cost of financing.
What customers are saying
Borrowers often praised Royal United Mortgage for its emphasis on education and transparency. Loan officers were commended for clearly explaining loan terms and helping clients navigate the process. Customers also appreciated the company’s ability to customize solutions based on their short- and long-term financial goals. Many noted smooth closings and competitive rates.
Other borrowers reported aggressive marketing practices, including frequent follow-up calls that felt overwhelming. Other complaints centered on inconsistent communication during the loan process and difficulty reaching representatives when issues arose. A few customers also expressed frustration with delays in closing and last-minute changes to loan terms, leading to additional stress during critical stages of the transaction.
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.