Flagstar Mortgage Rates Review

• Fifth largest mortgage originator in the United States
• Recently obtained branches from Wells Fargo and also owns eight Desert Community Bank branches in southern California
• Custom, personalized banking services are a primary focus for the institution
• Has built a variety of financial calculators into its website
• The Official Banking and Mortgage Sponsor of the Detroit Pistons
• The online mortgage application process is built around a short, quick application that lets users get information about the loan early and get quickly in touch with a loan officer

Flagstar Mortgage Overview

In the time since its charter in 1987, Flagstar has grown into the fifth-largest bank mortgage originator in the U.S. Its branches are centralized in Michigan and California, but it also offers online borrowing tools, so you can explore Flagstar mortgage rates and submit a loan application.

Flagstar Overall

Flagstar is among the nation’s largest mortgage originators. The bank opened in 1987 and offers a blend of fixed-rate, adjustable-rate, VA, FHA, and jumbo loans.

Their branches are located in California and Michigan, but they also provide an online application process that makes their services accessible from anywhere.

The bank’s resource center and a blend of loan options make it a natural fit for first-time homebuyers, but it offers plenty of options for those in other stages of their home-purchasing journey, as well.

Flagstar Loan Specifics

As a large, far-reaching lender, Flagstar provides a wide range of products aimed at a diverse array of customer types.

With government loans aimed at veterans and first-time home buyers, and jumbo loans available for those in a strong financial position, the blend of mortgages available from Flagstar run the full gamut of options.

Flagstar blends fairly conventional fixed and adjustable-rate loans with specialty mortgage options designed for those seeking a creative lending solution. Here’s a look at a few of the bank’s standout products (all rates and APRs are figured as of December 18, 2018):

Fixed-rate Loans

Flagstar offers fixed-rate loans for both 30-year and 15-year terms. The 30-year fixed-rate mortgage currently comes with a starting rate of 4.6 percent with a 4.734 APR. Those figures drop to 3.907 with a 4.136 APR.

Flagstar offers a degree of flexibility concerning down payments, but will typically require private mortgage insurance if your down payment is less than 20 percent of the total value of the loan.

The lender recommends its fixed loans for those who are mainly focused on having a predictable budget where they can more easily anticipate home costs on a month-to-month basis.

Adjustable-rate Loans

The lender offers a 7/1 adjustable-rate mortgage. This means the rate will be set for the first seven years of the loan and then be reset based on market conditions. Current rates stand at 4.309 percent with a 4.978 APR.

Flagstar’s adjustable-rate mortgage is designed to offer flexibility and provide borrowers with a lower initial monthly payment than is typical for a fixed-rate mortgage. While there is some uncertainty after the initial seven-year period, it may also be possible to refinance the loan if the new rate doesn’t fit your needs.

FHA 30-year Fixed Loan

The Federal Housing Administration offers specialty solutions designed to help first-time homebuyers get a loan even if they only have a small down payment. These loans are insured by the FHA and Flagstaff offers them in a 30-year fixed format with a 4.297 percent rate and 5.464 percent APR.

VA 30-year Fixed Loan

The U.S. Veteran Department of Veterans Affairs designed an exclusive mortgage product capable of covering 100 percent of the home price. The financing opportunity is only available to active-duty service members, veterans and, in some cases, eligible surviving spouses. 

Flagstar offers this loan for both home purchases or for refinancing, with current rates at 4.287 percent and a 4.649 percent APR.

Jumbo 30-year Fixed Loan 

Jumbo mortgages are meant for those seeking a substantial quantity of funds. They can extend to more significant amounts of money than a conventional home loan, with Flagstar loan amounts ranging between $453,101 and $3 million.

umbo loans require borrowers to blend some combination of having a high credit score, making a large down payment or having a particularly low debt-to-income ratio.

Flagstar Mortgage Customer Experience

Flagstar has built its identity around a highly relationship-driven banking model. This has extended into its mortgage processes in the form of online tools that provide convenience and ease of use to those seeking to purchase a home.

The website features a portal for an online application, letting you provide vital information for the loan, but not asking for particularly sensitive details, such as your Social Security Number.

You can also apply for a mortgage via phone or use the website to set up an in-person meeting at one of the lender’s branch locations.

When applying online with Flagstar, you aren’t giving up on the potential of a more personal, relational experience. Instead, a Flagstar representative specializing in mortgages will follow up with you about your application to guide you through the process.

The bank also boasts a resource center, FAQ page and similar details aimed at helping you obtain critical information on the mortgage market and how different types of loans work.

This content comes in a variety of forms, including advice articles in the resource center and small descriptions of each loan type on the landing page. 

In the same way, Flagstar also builds calculators into a variety of its pages, creating an intuitive path to estimating your costs and covering issues such as:

• Monthly payments
• Cost differences between fixed or adjustable loans
• Estimates of the cost of a 30-year term vs. a 15-year term
• The financial implications of making extra payments over the course of the loan
• How much home you can afford

While Flagstar Bank emphasizes customer relationships in its lending ideals, a J.D. Power survey found that it rates “about average” when compared with other primary mortgage originators.

Flagstar Lender Reputation

Flagstar boasts a reasonably strong reputation in the market despite its relative youth. The bank launched in 1987, and in that time has grown quickly while acquiring branches from a variety of other financial services providers, including some Wells Fargo and Desert Community Bank offices.

The Better Business Bureau gives Flagstar’s National Corporate Headquarters in Troy, Michigan, an A+ rating, with 101 complaints closed in the past three years.

Flagstar is a member of the FDIC, an Equal Housing Lender and ranked among the ten best banks in Michigan by GoBankingRates.

Flagstar Mortgage Qualifications

Because Flagstar’s website is designed heavily around an online application process, some details about qualifications for mortgages are difficult to pin down. The lender prioritizes the personal, relational touch of having an officer look at your initial application before delving deeply into qualifications.

However, a few general guidelines do apply:

	Down Payment Required	Private Mortgage Insurance Required w/ <20% Down Payment	Special Qualification Requirements
Fixed-Rate Mortgage	Yes	Yes	No
Adjustable Mortgage	Yes	Yes	No
VA Mortgage	No	No	Yes
FHA Mortgage	No	No	Yes
Jumbo Mortgage	Yes	Yes	Yes

For the most part, Flagstar’s requirements are relatively standard for the industry, with its non-specialized loans typically needing some form of down payment and personal mortgage insurance being a fairly common requirement with a down payment below 20 percent.

Flagstar Phone Number & Additional Details

• Homepage URL: https://ift.tt/WzyI36
  • Company Phone: (888) 248-6423
  • Headquarters Address: 5151 Corporate Drive, National Corporate Headquarters, Troy, MI 48098-2639
• States Serviced:  Nationwide, with branches in Michigan and California.

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