FedRateWatch Mortgage Loans Review

BySarah BadaniNov. 17, 2020

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In a Nutshell

Finding competitive rates for a first-time mortgage or a mortgage refinance loan can be like finding a needle in a haystack. Good luck. Sometimes, you get lucky and find a magnet that brings the needle straight to you. That's what FedRateWatch is; your magnet for attracting competitively-rated mortgage and refinance loans. A free tool, FedRateWatch, cuts out all the work of comparison shopping, leaving only relevant results to choose from.

pros

  • Fast and easy comparison tool
  • Everything is online
  • Totally free service to use

cons

  • Not a direct lender
  • No live chat customer service

FedRateWatch at a Glance

Direct lender or marketplace Marketplace
Loan Types Mortgages, refinance, fixed terms and adjustable
Featured Loans FHA, VA
Repayment Terms Varies based on lender, 10, 15, 20, 30 years fixed, 5/1, 3/1, 7/1 ARM
Minimum Down Payment Varies based on lender
Minimum Credit Score Varies based on lender
Suitable For People looking to save money

Overview

FedRateWatch is a free comparison tool that matches homeowners or home buyers with lenders that fit their requirements. Instead of needing to fill out multiple forms, deal with multiple lenders, and jump through all the hoops and red tape generally involved in taking out a loan (or refinancing one), FedRateWatch makes things so much easier. You'll fill out a short online application form with basic questions like, is this the first home you're buying, are you a veteran or married to one, and what type of home are you looking to purchase or refinance.

Then, FedRateWatch will run your information through its network of lenders and pair you up with lenders that are right for you. No more busywork, no more chasing dead-end leads, and no more rejections compounding the frustration. FedRateWatch makes it as simple as 1-2-3.

Suitable For?

FedRateWatch is an obvious choice for people who like to save money. Think about it like this, when you're shopping for a good pair of shoes, a car, or a service, the more you shop around, the more likely you are to find a more competitive rate and save money in the long run. The same concept applies to mortgage loans. The more lenders that you talk to, the more offers you get, the more leverage you have to work with and end up with a better deal.

FedRateWatch works with a huge network of lenders, and you can get offers from multiple partners simultaneously. Then, you can compare these offers and choose the right one, saving you time and money in the process.

Types of Loans/Products

FedRateWatch is not a direct lender, meaning it's not the one that will be giving you the money. Rather, FedRateWatch has a network of trusted lenders that it refers to in order to get suitable rates for your situation. So, if you have poor credit, you'll be paired up with a lender that specifically deals with poor credit borrowers. Conversely, if you have great credit but need a larger than usual mortgage loan, FedRateWatch will pair you up with a lender that has a higher loan limit and requires a higher credit score for approval. It takes all the guesswork out of loan shopping.

FedRateWatch partners offer a huge range of loan products that are suitable for various situations and needs. Here's a list of some of the potential mortgages and refinance loans you can get from one or many of the FedRateWatch partner lenders:

  • Fixed-rate mortgages
  • Adjustable-rate mortgages
  • VA loans
  • FHA loans
  • Refinancing loans

Since FedRateWatch isn’t a direct lender, though, it doesn’t have anything to do with things like what type of credit is required for approval, the APRs given, how much of a down payment is required, any eligibility requirements, and any other loan terms. Rather, each partner lender will set their own terms and conditions, including rates, repayment terms, and credit requirements (as we’ll discuss in more detail below).

The Application Process

FedRateWatch is all about ease of use. That’s why everything is online, the application form takes under a minute to fill out, and there are no downloads, uploads, or other complicated requirements to use the service. Fill out the form, and receive results like these in seconds:

Rates and Fees – The Bare Basics

FedRateWatch isn’t a direct lender, as we’ve already clarified. That means it doesn’t set loan rates or how much interest you’ll end up paying once you have the loan. FedRateWatch is a totally free service. It doesn’t charge you any fees to use the comparison tool. However, the FedRateWatch partners may charge various fees associated with their services, including an origination fee, early prepayment penalty, closing costs, legal fees, and more. Check with the individual lenders to determine how much and which fees will apply.

Repayment Terms

FedRateWatch is helpful for finding you low rates and repayment terms out there. However, since FedRateWatch isn't the direct lender, it doesn't draw up any of the loan terms. So, you can't look to FedRateWatch for things like APR and repayment terms. What you can do is look at the partner lenders and see what they have to offer. The average refinance or mortgage lender will offer flexible terms ranging from 10 years up to 30. The longer you take to pay the loan back, the more you pay out ultimately in interest rate payments. Bear this in mind when choosing your loan terms.

Help & Support

FedRateWatch does not have any customer support to speak of. But the partner lenders have extensive options, including phone, email, and FAQ sections on every site.

How FedRateWatch Compares


FedRateWatch On Q LowRates
Credit requirements Varies based on lender 580 620
Minimum down payment Varies based on lender Usually 3%, but zero-down options are available From 0%
DTI ratio Varies based on lender N/A 43%
Fees Free service to use, loan fees vary based on lender Origination  Origination, closing 
Repayment terms Varies based on lender 10, 15, 20, 25, 30 years 10, 15, and 30-year fixed
APR Varies based on lender N/A From 3.365%

Summary

FedRateWatch is an excellent choice for current homeowners looking to refinance or new homebuyers who want to get low rates possible on their new home mortgage loan. An easy and free comparison tool, FedRateWatch provides consumers with a fast and efficient way to compare multiple rate quotes at the same time.

FAQ

Q: Who should refinance their mortgage?

A: There are 2 situations when it makes sense to refinance your mortgage. If you think you can get a lower interest rate than you’re currently paying, definitely refinance. Also, if you currently have a long repayment term and want to refinance for a shorter one, so you can finish paying off your mortgage faster, go for it! Home equity is another reason to consider refinancing.

Q: Why is FedRateWatch a free service?

A: FedRateWatch is a totally free service that helps consumers find better rates from professional lenders. The service is free for consumers, but partner lenders have to pay to be included in the network. This ensures FedRateWatch has ample funding to keep the service free for consumers.

Q: What's the difference between adjustable and fixed-rate mortgages?

A: Fixed-rate mortgages are loans that have the same interest rate the entire length of your repayment terms. Adjustable rates, on the other hand, fluctuate with the market. So, sometimes you'll pay a higher rate and other times a lower one. 

Q: What is a home equity loan?

A: A home equity loan is a loan given based on the amount of value your home currently holds on the market minus the amount left on the mortgage to be paid. People choose to take out a home equity loan to get an easy lump sum of cash. 

FedRateWatch