|Loan Types||Mortgages and refinancing|
|Loan Features||Fixed-rate mortgages, no origination charges|
|Repayment Terms||10, 15, 20, 25, or 30-year fixed rates|
|Top Pro||Entire process is online, with rates shown in seconds|
|Top Con||Only available in 12 states (but growing)|
|Best for||Borrowers looking to do everything online and save time on paperwork|
Lenda is a 100% online lender offering borrowers the chance to secure competitive fixed-rate mortgages and refinancing from the comfort of their own home. Lenda currently offers loans to residents of 12 states (and growing): Arizona, California, Colorado, Florida, Georgia, Illinois, Michigan, Oregon, Pennsylvania, Texas, Virginia and Washington. Visitors to the Lenda site can obtain a personalized quote in literally a few seconds by filling out their estimated purchase price, down payment and credit score. Closure usually takes place within 30 days, with the advantage of being able to complete the entire process online.
Because Lenda’s service is all online, it is best suited to people who are used to running their lives from their desktop, tablet, or smartphone. If you’re the sort of person who already does most of their shopping online and doesn’t need face-to-face contact with customer support before making a decision, then you’ll find Lenda very easy to use. And just like other online services, Lenda’s streamlined business model enables it to eliminate unnecessary fees and deliver competitive prices.
Lenda was founded in 2013, and currently offers two products: fixed-term mortgages and refinancing. Its platform is easy to use. Not only does the entire application take place online, but you can also check on your status any time during the process, just by logging in and going to your personal dashboard.
The initial application process shouldn’t take more than an hour or two (plus however long it takes to make yourself a coffee and open the Lenda website in your browser). It involves the following steps:
Quick, easy and transparent application process
|Must register to see rates and terms|
|Everything done online||No face-to-face contact with lender|
|No application fees||Only available in 12 states (although this number is growing)|
The benefits to using Lenda are obvious. This is a 100% online lender that promises to cut out all unnecessary paperwork. In fact, when you apply, it’ll actually show you how much time and effort you’ve saved in comparison to going through a traditional lender. Its simulated application saves 10 days, 114 pieces of paper, and 1.1 headaches!
Thanks to its streamlined service, Lenda passes on some of the savings to the borrower by promising not to charge any application or underwriting fees (known collectively as origination fees). As anybody who is used to shopping online or through a smartphone will be aware, there are hidden savings too: think of all the time, effort and cost (on things like gas and parking) that you would spend going to a bank to apply in person.
There are some downsides to online services such as Lenda’s. You won’t see any rates and terms without registering. And if you’re the type of person who prefers face-to-face contact, this service might not be for you. One other con is that Lenda is only available in 11 states; though Colorado and Texas were the last to join in mid-2017, so it shouldn’t be too long before more are added.
Lenda offers only standard fixed-rate home loans and refinancing on residential properties. It is also planning to offer adjustable rate mortgages (ARMs) in the future.
Lenda offers fixed-rate mortgages and refinancing for durations of 10, 15, 20, 25, and 30 years. Unlike some traditional lenders who advertise their rates on their homepage, you’ll need to register (by entering your email address and a password) to find out the terms Lenda can offer you. These terms will depend completely on your own circumstances.
We submitted a simulated application using a 91101 zip code for Pasadena, California, a $780,000 house price (the median house price in Pasadena), a $480,000 down payment, and a 700-719 credit score. For a 30-year fixed term, Lenda offered a 4% interest rate (at 4.148% APR) for $1,432 monthly payments, up to a 4.375% interest rate (at 4.399% APR) for $1,498 monthly payments. By choosing the higher rate, Lenda offered to lower the estimated closing costs from $6,372 to just $433.
For a 15-year fixed mortgage using the same parameters, Lenda lowered the rate to 3.625% (with 3.759% APR) up to 4% (with 4.00% APR and enough lender credit for negative closing costs of $849).
Customer service representatives can be reached Monday to Friday, 6am to 6pm Pacific Time (or 9am to 9pm Eastern Time) at 855-846-7334, email@example.com, or via the live chat button on the Lenda website. Quotes can be obtained 24 hours a day, 7 days per week, on the Lenda website.
Lenda is a digital mortgage loan provider that offers standard mortgage and refinancing options through its online platform. The application process is as quick as they come, and takes place through a highly functional and well-designed website. Because rates are shown in real time, you can keep coming back each day until you find the deal you want. Once you find a good deal, closure is quick and you can access your account at any time to get an update on the status of your loan application.
44 Tehama Street
San Francisco, CA 94105