Filo mortgage review: An online lender for straightforward home loans

Two women walking down the street, holding hands and smiling after getting a home with a Filo mortgage togetherImage: Two women walking down the street, holding hands and smiling after getting a home with a Filo mortgage together

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Filo Mortgage loans at a glance

  • Conventional loans: Yes
  • FHA loans: Yes
  • VA loans: Yes
  • Refinancing: Yes
  • Jumbo loans: No
  • Adjustable rates: Yes (5/1, 7/1 and 10/1 ARMs)
  • Fixed rates: Yes (10 to 30 years)

Filo Mortgage is an online home lender founded in 2019. The company says it tries to provide solutions to some of the biggest pain points around the mortgage process.

Pros

  • Fast application process
  • Potential for quick closing times
  • No lender fees

Cons

  • Process not entirely online
  • Limited home loan options
  • Not available in most states

4 things to know about a Filo mortgage loan

While Filo Mortgage is still a relatively new lender, it offers some standout features if you’re shopping for a home loan or want to refinance your current mortgage. Here are some things to consider before you apply with Filo.

1. Potential for a quick mortgage process

According to Filo, the application process takes just seven minutes on average to complete, and that’s great if you’re intimidated by the mortgage process. But take note that you’ll need to talk to someone on the phone if you want to just get a custom rate quote.

The lender also says its average closing period is just 22 days — in December 2020, the average time to close for all mortgage loans was 58 days, according to Ellie Mae.

2. No lender fees

Closing costs on a mortgage can be between 2% and 5% of the loan amount, depending on your situation. Some of those mortgage fees are charged directly by the lender to originate the loan. In fact, the origination fee alone is typically 1% of the amount borrowed.

With Filo Mortgage you won’t pay any lender fees, which can save you hundreds or even thousands of dollars depending on your circumstances.

3. Rate float option

Another way Filo sets itself apart from other lenders is that it offers a rate float in addition to a rate lock. This means that if interest rates go down, you can take advantage of that instead of being stuck with the rate you locked in at the beginning of the lending process.

But remember, if you choose that option, things could also go the opposite way if rates go up — leaving you paying more interest over the course of your loan.

4. Limited loan options

Filo Mortgage offers some common types of home loans, including conventional, FHA and VA loans. You can also choose between a fixed and adjustable rate, and both purchase and refinancing loans are available.

But if you want a USDA loan, jumbo loan or other specialized home loan, you’ll need to look somewhere else. Plus, Filo doesn’t offer home equity loans or HELOCs.

And unless you live in one of the 21 states where Filo does business, you’re out of luck.

Who is a Filo Mortgage loan good for?

If you’re in a time crunch to buy a home or refinance your current loan, Filo Mortgage may be a good choice with its potentially fast closing times. And while the mortgage company isn’t the only one that spares you any lender fees, that feature plus the chance to close in two to three weeks can be appealing.

Most of the lender’s process occurs digitally, so you don’t have to worry too much about a lot of phone conversations between you and a loan specialist if that’s important to you. But there is some human interaction required, and you can call and ask questions at any time.

If you’re a first-time homebuyer who qualifies for an FHA loan, that may be a good option to consider since down payments start as low as 3.5%. And if you’re eligible for a VA loan, you may be able to get 100% financing.

And remember, Filo Mortgage only operates in 21 states, so consider it only if you live in Arizona, California, Colorado, Connecticut, Florida, Georgia, Illinois, Louisiana, Maryland, Michigan, Minnesota, Missouri, New Jersey, North Carolina, Oregon, Pennsylvania, Tennessee, Texas, Utah, Virginia or Washington.

How to apply for a Filo mortgage

You can apply for a Filo Mortgage loan online through the lender’s website. If you apply online, you’ll start by creating an account. From there, you can choose which loan officer you want to work with and complete the application process.

If you just want a rate quote to start, you can share a little bit of information about yourself and the home you want to buy, and a loan specialist will call you directly.

Not sure if Filo Mortgage is right for you? Consider these alternatives.

If you’re shopping for a mortgage, you have a window of time where multiple credit inquiries are only counted as one for your credit scores. You typically have 14 days, but it can be longer depending on the scoring model. Even if you’re pretty sure you want to go with Filo, it’s a good idea to take some time to compare quotes from multiple lenders.

  • Better Mortgage: This online lender is worth considering if you want another option with no lender fees.
  • Rocket Mortgage: If you want a lender that’s available in every U.S. state, take a look at Rocket Mortgage by Quicken Loans.

About the author: Ben Luthi is a personal finance freelance writer and credit cards expert. He holds a bachelor’s degree in business management and finance from Brigham Young University. In addition to Cr… Read more.