Here’s how New American Funding and Rocket Mortgage compare, including their pros and cons and who they’re best for.

New American Funding and Rocket Mortgage are well-known mortgage lenders offering a solid range of loan products. That said, they’re designed for different types of borrowers. 

To help you determine which lender better fits your needs, we interviewed a mortgage expert to break down the pros and cons and understand how these two stack up against each other. 

What is New American Funding?

New American Funding is an independent mortgage lender offering various loan products, including conventional loans, FHA, VA and non-qualified mortgages. It’s also known for catering to self-employed borrowers or those with unique income. 

Plus, New American Funding services approximately 90% of the conventional, FHA and VA loans they originate. You’ll most likely deal with them directly throughout your loan rather than getting transferred to a different loan servicer. This typically also translates to better customer service and more consistent communication. 

Pros

• Offers multiple mortgage options
• Has hundreds of branch locations
• Bilingual loan officers and programs aimed at Latino and Black communities

Cons

• No 24/7 customer service
• Doesn’t disclose lender fees online
• Not available in all states

Who is New American Funding Best for?

“New American is great for borrowers who want someone to really explain things, especially if English isn’t their first language or they’re first-time buyers,” says Marifer Vergara, mortgage loan originator at USA Mortgage Homes. “They have bilingual agents, more flexibility with underwriting and a strong focus on underserved communities. Plus, they’re known for working closely with Latino and first-time homebuyers, which I love.” 

Overall, New American Funding is best if you’re looking for a more personalized mortgage experience and want to work with a lender that’s committed to increasing homeownership among underrepresented groups.

Who Should Choose Something Else?

If you prioritize a fully online experience, 24/7 support or want instant access to customized rates without speaking to a loan officer, New American Funding might not be the best fit.

What is Rocket Mortgage?

Rocket Mortgage is a fully online mortgage lender from Rocket Companies, known for its digital application and loan process. It offers conventional, FHA and VA loans and a fast and user-friendly application process that allows you to get approved entirely online.

Pros

• Quick online application with real-time rate estimates
• Trusted brand with a strong reputation
• Comprehensive library of educational content
  

Cons

• Doesn’t offer USDA loans or home equity lines of credit 
• Less personalized support
• No in-person service available

Who is Rocket Mortgage Best for?

“Rocket is best for borrowers who are tech-savvy, have W-2 income, great credit and want everything fast with minimal talking to humans,” Vergara says. In other words, if you want a streamlined and almost DIY experience, Rocket is worth looking into. That said, it might not be the best option if you need guidance or have a unique situation (like being self-employed or having a thin credit file). 

Who Should Choose Something Else?

As mentioned earlier, if you’re self-employed, have inconsistent income or need help navigating different mortgage options, Rocket Mortgage may not be flexible enough to meet your needs.

Comparison

How to Choose Between New American Funding and Rocket Mortgage

Both lenders can get the job done, but the experience is different. “Rocket is great for speed,” Vergara explains, “but if you need warmth, cultural understanding or you’ve got a more complicated financial picture, New American might be the better choice.” Another thing worth mentioning is that New American Funding’s advertised rates are lower than Rocket Mortgage’s. Though a small percentage in difference may not seem like much, it could save you thousands in interest over the life of your loan.

So, no matter which lender you choose, always compare mortgage rates and work with a loan officer you trust.

Why You Should Trust Us

Around 25 million readers monthly trust Benzinga for in-depth financial coverage, including mortgages, investing and other personal finance topics. Our commitment to thorough research and expert-backed insights has solidified our reputation as a go-to resource for financial information.

Jamela Adam, the author of this piece, has been a personal finance writer since 2021. She’s also a Certified Financial Education Instructor. To provide expert perspectives on New American Funding vs. Rocket Mortgage and help you make a confident choice, we spoke with Marifer Vergara, mortgage loan originator at USA Mortgage Homes.

FAQ

Sources:

• New American Funding. https://www.newamericanfunding.com
• Rocket Mortgage. https://www.rocketmortgage.com
• Better Business Bureau. “New American Funding BBB Rating.” https://www.bbb.org/us/ca/tustin/profile/mortgage-broker/new-american-funding-1126-13216611
• Better Business Bureau. “Rocket Mortgage BBB Rating.”https://www.bbb.org/us/mi/detroit/profile/mortgage-broker/rocket-mortgage-0332-8059

The post New American Funding vs. Rocket Mortgage: Which Is Better? by Jamela Adam appeared first on Benzinga. Visit Benzinga to get more great content like this.

Here’s what you need to know in 2025 if you’re considering refinancing your FHA or VA loan. 

Government refinance applications increased by 42% over the week, according to the MBA’s Weekly Mortgage Applications Survey for the week ending Feb. 28, 2025. This jump was mainly due to the dip in mortgage rates, which are currently hovering at around 6.70%, the lowest since December 2024. 

Does it make financial sense for you to refinance right now? We interviewed experts to understand what’s going on with government-backed loans, specifically FHA and VA refinancing, to help you decide. 

What is an FHA Loan?

An FHA loan is a government-backed mortgage insured by the Federal Housing Administration (FHA), part of the U.S. Department of Housing and Urban Development. With FHA loans, you can make down payments as low as 3.5% if you have a credit score of 580 or higher. 

If you’re taking out a $500,000 FHA loan, you can put down as little as $17,500 for your home. Because of the low credit score and down payment requirements, FHA loans are solid options for aspiring homeowners with little savings or less-than-ideal credit. 

That said, you must pay a mortgage insurance premium (MIP) when you take out an FHA loan. MIP includes an upfront premium paid at closing, equal to 1.75% of the loan principal. You’re also responsible for annual MIPs, which are typically rolled into your mortgage payments for the life of the loan. 

What is a VA Loan?

A VA loan is a mortgage guaranteed by the U.S. Department of Veterans Affairs for service members, veterans and their surviving spouses. 

The main selling point of a VA loan is that it requires zero down payment – provided that the home’s sales price doesn’t exceed its appraised value. VA loans don’t require you to pay private mortgage insurance, which typically comes with conventional loans. They also limit the closing costs you pay.

However, VA loans typically charge higher interest rates than conventional loans. Plus, you must pay a VA loan funding fee, which can cost anywhere between 1% and 3% of the total loan amount. 

Why Refinance an FHA or VA loan?

Refinancing your FHA or VA loan allows you to potentially lower your interest rates, reduce monthly payments or switch from an adjustable-rate loan to a fixed-rate one for stability. 

“FHA borrowers might also use cash-out refinancing to access equity for things like home improvements or paying off debt,” explains Mike Roberts, a mortgage broker, loan originator and co-founder of City Creek Mortgage. “For VA loans, refinancing is often about saving money or simplifying payments through programs like IRRRL.” An IRRRL is a type of VA loan that helps you refinance an existing VA-guaranteed loan, generally at a lower interest rate. 

What’s Changed in 2025?

“The challenge this year is higher closing costs due to increased loan limits and rate fluctuations,” says Roberts. “You’ll want to make sure refinancing actually saves you money after those costs are factored in.” 

He says that because of these higher loan limits in 2025, you can refinance larger balances and access more equity if you’re doing a cash-out refinance. 

According to the HUD, FHA loan limits have increased to a floor of $524,225 and a ceiling of $1,209,750, reflecting rising home prices. For VA loans, the limits have also risen to $806,500 in most counties. These changes mean you can refinance larger amounts.

“The downside is that in an uncertain market, lenders are tightening their requirements,” says Bill Lyons, Founder, CEO & President of Griffin Funding, a nationwide boutique mortgage banker. If you’re considering refinancing your mortgage, he suggests evaluating your financial situation and researching multiple mortgage refinance lenders to find the best refinancing options.

The Bottom Line

Though higher loan limits mean you could borrow more, potentially more expensive closing costs and stricter lending criteria mean you’ll also need to crunch the numbers carefully. Before refinancing your mortgage, compare lenders and calculate your long-term savings to see if this decision makes financial sense. Check out our lists of the best FHA lenders and VA refinance mortgage lenders to narrow down your options. 

Why You Should Trust Us

Around 25 million readers monthly trust Benzinga for in-depth financial coverage, including mortgages, investing and other personal finance topics. Our commitment to thorough research and expert-backed insights has solidified our reputation as a go-to resource for financial information.

Jamela Adam, the author of this piece, has been a personal finance writer since 2021. She’s also a Certified Financial Education Instructor. To provide expert perspectives on the future of FHA and VA loans, we spoke with Mike Roberts, a mortgage broker, loan originator and co-founder of City Creek Mortgage, and Bill Lyons, Founder, CEO & President of Griffin Funding, a nationwide boutique mortgage banker. 

FAQ

Sources

• Mortgage Bankers Association, Weekly Mortgage Applications Survey, Feb. 28, 2025 https://www.mba.org/news-and-research/newsroom/news/2025/03/05/mortgage-applications-increase-in-latest-mba-weekly-survey
• Freddie Mac, Primary Mortgage Market Survey (PMMS) https://www.freddiemac.com/pmms
• Mike Roberts, a mortgage broker, loan originator, and co-founder of City Creek Mortgage https://www.linkedin.com/in/mikeroberts5/
• Bill Lyons, Founder, CEO & President of Griffin Funding, a nationwide boutique mortgage banker: https://www.linkedin.com/in/lyons/

The post The Future of FHA and VA Refinances in 2025: What’s Changing? by Jamela Adam appeared first on Benzinga. Visit Benzinga to get more great content like this.

More homeowners are submitting their refinancing applications. However, with rates still above 6%, many are standing on the sidelines waiting for rates to drop lower before trading their existing loans for a new one. 

Mortgage rates have dropped to their lowest level in 2025. But with rates still hovering above 6%, is refinancing on the rise, or are homeowners waiting for refinance rates to dip even further before making a move?

The decision to refinance isn’t always clear-cut, but understanding the market can help you make a more informed choice. We interviewed experts to break down the latest refinancing trends.

What is Refinancing?

Refinancing, or refi for short, is the process of replacing an existing loan with a new one. The new loan typically has more favorable terms, like lower rates, or may offer better features. 

If you want to refinance your mortgage or other types of loans, you’ll have to contact your existing lender or a new one and fill out a new loan application. Since you’re essentially taking out another loan, you must go through the underwriting process again and pay closing costs, typically between 2% and 6% of the new loan amount. 

Key Factors Affecting Refinancing in 2025

Here’s what’s shaping the refinancing market in 2025:

• Mortgage rates: Refinancing could make sense for homeowners if rates have dropped since they first took out their mortgage. 
• Inflation: If inflation remains elevated, the Fed is less likely to cut rates, keeping borrowing costs high.
• Federal Reserve policies: Future rate cuts could spark a wave of refinancing, but there’s no guarantee of when or if that will happen.
• Economic uncertainty: Fears of a recession and economic uncertainty may keep many homeowners on the sidelines.

Experts’ Insights on the Refinancing Landscape

Here’s what experts say about the refinancing landscape and the factors driving homeowners’ decisions.

Economic Factors Impacting Refinancing Decisions

“Mortgage rates have improved over the past couple of months because the yield on 10-year Treasury bills has dropped. This signals the loss of confidence on the part of global investors,” says Sebastian Frey, a licensed Real Estate Broker and REALTOR® with Compass. “If in fact the U.S. economy does dip into a prolonged and deep-ish recession, I think we’ll see mortgage rates drop into the 5s and even possibly the 4s.” 

He believes this would have a dramatic effect on the refi market, causing a rush to refinance even as the economy slips into negative territory.

How Mortgage Rates Are Shaping Refinancing Trends

Mortgage rates dropped to their lowest level in 2025, which means more homeowners are gearing up to refinance their homes and take advantage of lower interest rates. According to the Mortgage Bankers Association’s Weekly Mortgage Applications Survey for the week ending Feb. 28, 2025, refinance activity was at its fastest pace since October 2024. Conventional refinance applications were up by 34%, and government refinance applications jumped by 42% over the week. 

That said, with current rates above 6%, few homeowners could benefit from a refinance given the current rate and cost. So, even though the percentage increases may seem quite drastic from week to week, the volume isn’t as significant. 

“While some borrowers are considering refinancing, many are still holding off in anticipation of potential future Fed rate cuts,” says David Druey, Florida regional president for Centennial Bank. “However, if the Fed lowers rates again, we could see more refinancing activity in the coming months.”

The Role of Inflation and Federal Reserve Policies

According to Druey, homeowners typically refinance when they see a clear financial benefit, but inflation creates uncertainty, making many hesitant to act.

“If inflation remains above 2%, the Fed is unlikely to lower rates, which will keep borrowing costs elevated,” Druey says. This means fewer homeowners will be willing to refinance as they won’t financially benefit much from it. However, if inflation stabilizes, the Fed may cut rates to stimulate the economy, and more people may refinance their homes. 

The Bottom Line

Refinancing is picking up, but not all homeowners are ready to get off the sidelines yet. If you’re not sure what you want to do, take the time to run the numbers and consult with a trusted refinance lender or financial advisor. If refinancing saves you money in the long run, it could be worth it. Otherwise, you may want to hold out for better opportunities. 

Why You Should Trust Us

Around 25 million readers monthly trust Benzinga for in-depth financial coverage, including mortgages, investing and other personal finance topics. Our commitment to thorough research and expert-backed insights has solidified our reputation as a go-to resource for financial information.

Jamela Adam, the author of this piece, has been a personal finance writer since 2021. She’s also a Certified Financial Education Instructor. To provide expert perspectives on refinancing trends in 2025, we spoke with David Druey, Florida regional president for Centennial Bank, and Sebastian Frey, Licensed Real Estate Broker and REALTOR® at Compass. 

FAQ

Sources

• Sebastian Frey, Licensed Real Estate Broker and REALTOR®, Compass https://www.compass.com/agents/sebastian-frey/

• David Druey, Florida Regional President, Centennial Bank https://www.linkedin.com/in/david-druey-88b1392b/

• Mortgage Bankers Association, Weekly Mortgage Applications Survey, Feb. 28, 2025 https://www.mba.org/news-and-research/newsroom/news/2025/03/05/mortgage-applications-increase-in-latest-mba-weekly-survey

• Federal Reserve, Monetary Policy Report 2025 https://www.federalreserve.gov/

• Freddie Mac, Primary Mortgage Market Survey (PMMS) https://www.freddiemac.com/pmms

The post Is Refinancing on the Rise in 2025? Experts Weigh in by Jamela Adam appeared first on Benzinga. Visit Benzinga to get more great content like this.