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Business Insider's personal finance team compared Sage Mortgage to the best mortgage lenders and found its offerings to be fairly standard.
Sage Mortgage has relatively low rates and an easy online process. But there are other lenders with similar offerings that have additional beneficial features like down payment assistance or customer discounts. Because of this, we think there are better options out there, particularly if you're a first-time homebuyer.
That said, if you're a current homeowner looking to buy again or refinance, it might be worth getting a quote from this lender to see what it can offer you, since its rates are on the low end. However, we found its average fees to be slightly high.
When you go to Sage Mortgage's website, you'll actually be directed to visit the website for Sage Home Loans, which is the affiliated company you'll apply for a mortgage with. Sage Home Loans was formerly known as Lenox Financial Mortgage Corporation.
Sage Home Loans is owned by Red Ventures, which also owns the personal finance website Bankrate.
Sage Mortgage Options
Purchase Loans
If you're looking to buy a house, you can get the following types of mortgages from Sage Mortgage:
- Conforming loans: For borrowers with credit scores of at least 620 and a 3% down payment
- FHA loans: Get a mortgage with a 580 credit score and a 3.5% down payment
- VA loans: Allow no down payment for eligible veterans and military members
- Jumbo loans: Mortgages for amounts that exceed the conforming loan limit ($766,550 in 2024)
Refinance Loans
You can also get a rate-and-term or cash-out refinance with this lender.
Sage Mortgage Rates and Fees
Based on our review of Home Mortgage Disclosure Act data, Sage Mortgage's mortgage rates are on the low end compared to other mortgage lenders.
Current Rates
To explore Sage Mortgage's current mortgage rates, you can navigate to the "today's rates" tab on its website. This will show you sample rates based on your ZIP code for 15-year, 20-year, and 30-year fixed-rate mortgages. These rates include points, which borrowers pay for at closing in exchange for a lower rate.
To get a personalized rate quote, you'll need to start an application and authorize the lender to perform a soft check of your credit (this won't impact your credit score).
Closing Costs and Lender Fees
In 2022, the average borrower getting a conventional loan from this lender paid $4,817 in origination charges, according to HMDA data. This is slightly high compared to other lenders.
When you get a mortgage, you'll pay a lot of different fees as part of your closing costs. Some of these fees will be charged by your lender, and others will be paid to third parties, like the title company that assists with your loan. When you shop around with mortgage lenders, it's a good idea to compare both rates and potential fees to get a full picture of how much you'd pay overall.
Sage Mortgage Overall Lender Rating
Loan Types: 3 out of 5
Sage Mortgage has some of the most popular types of mortgages, so most borrowers should be able to find what they're looking for with this lender. However, it doesn't have any home equity loans, HELOCs, or more niche types of mortgages (like renovation loans).
Affordability: 3.5 out of 5
You might like Sage for its relatively low mortgage rates. It also has a couple of government-backed mortgage options, which are often more affordable for first-time and low-income homebuyers. Its FHA loans are available to borrowers with scores down to 580, and VA loans allow you to purchase a home with no down payment. But the lender's average fees are slightly high.
Customer Satisfaction: 4 out of 5
On its Zillow lender page, Sage Mortgage has a 4 out of 5-star rating. However, this rating is only based on 39 customer reviews. Overall, information on what borrowers think about this lender is relatively limited, though what we've seen has generally been positive.
Trustworthiness: 5 out of 5
Sage Mortgage has an A+ rating from the Better Business Bureau and no recent scandals. BBB grades are based on honesty in advertising, transparency about its business practices, and effectiveness in responding to customer complaints.
Benefits of Choosing Sage Mortgage
- Average rates are on the low end
- Explore sample rates online by ZIP code
- Easy online application
- Soft credit check to view customized rates
Competitive Rates, Can See Current Rates Online
According to HMDA data, Sage Mortgage has relatively low mortgage rates, so you might be able to get a good deal with this lender. You can also see a few examples of the lender's current rates by ZIP code on its website. However, these rates include points, which you pay for at closing in exchange for a lower rate.
Convenient Online Process
You'll complete your application for Sage Mortgage online, and you can use the lender's platform to easily upload documentation and keep track of action items.
Get a Rates Quote Without Hurting Your Credit
To see a customized rate quote, you will need to provide some personal information, including your phone number and email address. But the lender will only perform a soft credit check, which won't impact your credit score.
Potential Drawbacks of Sage Mortgage
- Doesn't have home equity options or more niche types of mortgages
- No in-person branches
- Lacks transparency around loan offerings
- Fees are slightly high
Limited Loan Options
If you're looking for a lender that offers a wide array of loan types, including more niche options, Sage Mortgage isn't the right choice for you. Borrowers in search of products like construction loans, physician mortgages, or non-QM loans will need to look elsewhere. The lender also doesn't have any home equity loans or HELOCs.
Online-Only Process
Sage Mortgage is an online-only mortgage lender. If you want a lender with local branches and an option to apply in person, you'll need to look elsewhere.
Little Information Available Online
Sage Mortgage doesn't provide much information about what it offers on its website, which can make it difficult to compare loan options or know if you're likely to qualify with the lender.
Slightly High Fees
Sage Mortgage's average fees are a bit high compared to some other lenders we've reviewed. Shop around and compare offers from multiple lenders to be sure you're getting the best overall deal.
What Borrowers Are Saying About Sage Mortgage
Business Insider looked at positive and negative customer reviews, online forums, BBB complaints, and other sources to understand what borrowers think about Sage Mortgage.
Borrower feedback on Sage Mortgage's process is generally positive, with many saying the loan officers they worked with were communicative and helpful. We also saw a handful of complaints from borrowers who felt the process was disorganized. But it's difficult to get a sense of what the typical borrower experience is with this lender since there are so few customer reviews online.
How to Apply for a Sage Mortgage
Step 1: Prepare Your Documentation
Regardless of where you apply for a mortgage, you'll need to provide a lot of documentation. The documents needed for a mortgage application include proof of your income and assets, so be prepared to provide things like paystubs, W-2s, tax returns, and bank statements.
Step 2: Get Preapproved
Your first move with the lender will likely be to get preapproved. With a preapproval, the lender will take a precursory look at your finances and determine what loans you might qualify for and how much you can afford to borrow. You can't get fully approved until you're under contract to buy a house, since evaluating the property will be part of the approval process.
While Sage Mortgage will initially do a soft check of your credit to give you some rate quotes, it will eventually need to do a hard credit check, which will show up on your credit report.
Step 3: Connect With a Loan Officer
Once you submit your info, the lender will set you up with a loan officer. This is the professional you'll work with to complete your application and start the underwriting process. If you have any questions or need assistance with your loan during this time, your loan officer can help you out.
Step 4: Provide Additional Information As Needed
You may be asked to provide documentation more than once, especially if the lender requires updated information. You'll also need to submit information on the home you're buying or refinancing (including your purchase contract, if applicable). The lender will order an appraisal on the property as well.
Step 5: Close on Your Loan
Underwriters will comb through your finances to be sure you can afford to take on the loan. If everything checks out, you'll be approved for the mortgage and ready to close on the loan, which involves signing a lot of different documents.
How Sage Mortgage Compares
Sage Mortgage vs. Guild Mortgage
If you're looking for an online lender that has a few more bells and whistles, you might like Guild Mortgage. Guild Mortgage is one of our favorite lenders, and it's a particularly good choice for first-time homebuyers thanks to the various forms of down payment assistance it offers. You can also apply with this lender using non-traditional credit (like rent payment history) if you don't have a traditional credit score.
Guild Mortgage has a huge range of mortgages to choose from, including conventional loans, government-backed mortgages, reverse mortgages, renovation loans, manufactured home loans, and more. However, its average rates are a bit high.
Sage Mortgage vs. Bank of America
When it comes to the best mortgage lenders, Bank of America Mortgage is our top pick. It's an extremely affordable mortgage lender that's a good option if you want a more traditional lending experience.
Bank of America offers a closing cost grant of up to $7,500 and a down payment grant of up to $10,000. Its rates and fees are both on the low end. Plus, it has branches throughout the U.S. if you prefer an in-person application process.
But Bank of America doesn't disclose its minimum credit scores, so it's difficult to get an idea of whether you'll qualify with the lender prior to applying.
Bank of America Mortgage Review
Sage Mortgage FAQs
You'll need a credit score of at least 620 to qualify for a conforming loan with Sage Mortgage, or 580 for an FHA loan.
How long it takes to get approved for a loan from Sage Mortgage depends on your individual circumstances and how quickly you're able to provide the required documentation.
Sage Mortgage offers VA loans, which allow veterans and military members who meet minimum service requirements to get a mortgage with no down payment. Sage Mortgage doesn't advertise any special programs specifically for first-time homebuyers.
Why You Should Trust Us: How We Reviewed Sage Mortgage
For our review of Sage Mortgage, we used our methodology for reviewing mortgage lenders.
We look at four factors — loan types, affordability, customer satisfaction, and trustworthiness — and give each a rating between 1 and 5, then we average these individual ratings for the overall lender rating. Lenders get higher ratings if they offer a large number of loan types with affordable features, have positive customer reviews, and don't have any recent public controversies.
