Which mortgage lender in the Houston, TX area typically has the best rates? To help you narrow down where to shop for a mortgage, MortgageWaldo.com provides an objective and data driven ranking of mortgage lenders operating in the Houston, TX area by interest rate and market share. We maintain our independence by not accepting any compensation from the mortgage lenders we rank, and use data on all fixed rate mortgages that were closed in the past year to generate our rankings.
Going by historical data, the best mortgage lender in the Houston, TX area in terms of interest rate is Provident Funding, with an average “Rate Difference” of -0.37%. This means that, comparing similar borrowers, Provident Funding provided a -0.37% lower interest rate for its customers than other lenders in the area. Provident Funding has a market share of 1.0%. On the other hand, the most popular lender in the Houston, TX area is Quicken Loans, with a larger market share of 6.9%. However, Quicken Loans also tends to be an expensive lender in the area, with an average “Rate Difference” of +0.11% compared to those of other lenders. We recommend shopping around before going with this popular lender.
Our detailed ranking of mortgage lenders in the Houston, TX area is shown in the table below. In the table, we also give our assessment of whether they are, on average, a cheap/expensive lender through a star rating system. You can choose to tailor our ranking table to a specific mortgage type (Conventional/Jumbo/FHA/VA) and purpose (purchase/refinance) through the drop-down menu. For example, going by historical data, the cheapest lender for Conventional mortgages in Houston, TX is Provident Funding. If you want to take out a loan that is above conforming limits (above $548,250 or $822,375 depending on the area in 2021), the cheapest Jumbo mortgage provider is Bank of America. If on the other hand, you want lower down payment or credit score requirements, the cheapest FHA mortgage provider is Bank of America. The cheapest VA mortgage provider is Navy Federal Credit Union. Note that as a consumer advocate we always recommend shopping among several of our top ranked lenders in order to get the best rates and fees.
Ranking of Mortgage Lenders in Houston, TX
* Data is compiled for the Houston, TX commuting zone area, which comprises of counties of Brazoria County, TX, Chambers County, TX, Fort Bend County, TX, Galveston County, TX, Harris County, TX, Liberty County, TX, Matagorda County, TX, Montgomery County, TX, San Jacinto County, TX, Waller County, TX, and Wharton County, TX. This includes cities/towns/communities of Houston, TX as well as Conroe, TX, Pearland, TX, League City, TX, The Woodlands, TX, Atascocita, TX, Sugar Land, TX, Missouri City, TX, Pecan Grove, TX, Katy, TX, Fulshear, TX, Rosenberg, TX, Oak Ridge North, TX, Tomball, TX, Spring, TX, Pasadena, TX, Baytown, TX, Galveston, TX, Sienna Plantation, TX, The Woodlands, TX, Cinco Ranch, TX, Montgomery, TX, Baytown, TX, Friendswood, TX, La Porte, TX, Alvin, TX, Santa Fe, TX, Lake Jackson, TX, Channelview, TX, Texas City, TX, Angleton, TX, Katy, TX, Deer Park, TX, Panorama Village, TX, Waller, TX, Rosharon, TX, Willis, TX, Dayton, TX, Humble, TX, Fresno, TX, Friendswood, TX, Pearland, TX, Greatwood, TX, Iowa Colony, TX, West University Place, TX, Dickinson, TX, Magnolia, TX, Seabrook, TX, Bellaire, TX, Jersey Village, TX, and Crosby, TX. Lenders must have made at least 30 loans in the area to be included. Source of the data is Federal Financial Institutions Examination Council (FFIEC). Rate Difference (the average difference of interest rates relative to those of other lenders) were computed by subtracting the rate at origination from the average predicted rate conditional on the commuting zone, borrower LTV, DTI, Loan Amount, Loan Type, and Loan Purpose, and then regularized based on a Bayesian approach to account for smaller sample sizes. Above-average mortgage closing costs were then added to the rate difference at a rate of +0.15/point. Star ratings were determined in intervals of 0.10% in rate difference per half star.
Mortgage Lender Rankings in Other Cities
This page contains information about the top mortgage lenders in the Houston, TX area. For mortgage lender rankings in other cities, click here.