Paramount Bank Mortgage Review | The Mortgage Reports

By admin On Jul 25, 2022

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Paramount Bank mortgage rates

Home buyers won’t find Paramount Bank’s current mortgage rates on its website, which can make rate shopping difficult.

However, data on all Paramount loans from 2021 shows its mortgage rates, closing costs, and fees are lower on average than some of the big-name lenders.

Just remember, mortgage rates are personal. So you’ll need to request a custom rate quote from Paramount to see what this bank can offer you.

Average mortgage rates at major lenders

	Paramount Bank	Rocket Mortgage	Wells Fargo	Freedom Mortgage
Avg 30-Yr Interest Rate, 2021¹	2.88%	3.00%	3.14%	2.66%
Median Total Loan Costs, 2021¹	$3,338	$4,670	$3,600	$3,880
Median Origination Fee, 2021¹	$995	$2,430	$1,330	$0

Average rate and fee data sourced from public rate and fee records required by the Home Mortgage Disclosure Act (HMDA).

Paramount Bank mortgage review for 2022

So what’s to like and dislike about Paramount Bank? Here are some thoughts:

There’s little information online. Meaning you have to engage with a loan officer to get an idea of what your loan might look like
Requirements are non-transparent. It doesn’t release information about its minimum down payment, credit scores, or debt-to-income ratios
Its range of mortgage options is good. But others lenders and mortgage brokers may offer a larger variety of loan programs
The bank has only a few branches spread across six states. For those with branches nearby, it has a good reputation for in-person customer service
Reputedly has good technologies to facilitate the mortgage process. Yet its website appears less functional than its competitors
Online customer review forums suggest many like it. Reviews from homeowners and buyers alike claim the lender met their needs

Paramount’s strong customer reviews give the impression that this is a good mortgage company to work with. It earns five stars from hundreds of borrowers on multiple platforms, including Lending Tree and Zillow.

The biggest drawback from our point of view is the lack of available information online.

This makes it difficult to judge what your rate would look like — or whether you’re likely to qualify — without taking the time to speak to a loan officer.

However, that will mainly be a concern if you have borderline credit or higher debt. For those with an excellent mortgage application, qualifying shouldn’t be an issue.

And at worst, if you end up with a different lender, you’ll only lose the time you spent getting a rate quote.

Working with Paramount Bank

Paramount allows home buyers to begin applications for prequalification, preapproval, and mortgage loans on its website. But you’ll be unable to complete the whole process online. At some point, you will need to speak with a loan officer.

The company’s website says Paramount Bank Loan Originators “will meet with prospective borrowers (typically face-to-face) to begin the actual loan application process.”

Before you meet, you’ll have to submit a number of documents, including your most recent federal tax returns, paystubs, and bank statements. During the meeting, the loan officer will explore your needs in order to recommend the best type of mortgage for you.

Additionally, the website features educational resources for first-time home buyers, repeat buyers, and homeowners refinancing their home loans. It also offers mortgage calculators that help you understand how your interest rate and down payment impact your monthly mortgage payment.

However, Paramount Bank only has branches in a handful of states. Meaning not everyone will get that face-to-face experience.

The company is licensed in all 50 states and Washington D.C. So for those without a branch nearby, it’s possible to do an initial application online and finish your loan over the phone.

Paramount Bank credit requirements

As mentioned, the Paramount Bank doesn’t publish either its credit score or debt-to-income ratio requirements.

When discussing credit scores generally, Paramount says those with very high scores tend to get better-than-market rates, while those with average scores tend to get market rates.

Paramount specifies a credit score of 680 as the point below which higher rates may apply. However, it also says “Mitigating circumstances can help your approval process if you have credit issues. Your Paramount home loan expert can help.”

This may be encouraging for those with low scores for good reasons, provided their financial issues are behind them. It sounds as though Paramount is willing to be flexible and consider an otherwise-strong application despite a lower score.

Paramount Bank customer service reviews

We searched the Consumer Financial Protection Bureau (CFPB) complaint database and found no complaints filed against Paramount Bank by its mortgage customers.

The lender also maintains an A+ rating with the Better Business Bureau (BBB); though some reviews indicate that borrowers had issues with customer service.

Still, the company earns an average satisfaction score of 4.84 out of 5 across multiple review forums, including Zillow and Lending Tree.

	CFPB Complaints, 2021⁴	Complaints Per 1,000 Mortgages, 2021⁵	J.D. Power Satisfaction Score, 2021⁶
Paramount Bank	0	0	Not rated
Rocket Mortgage	376	0.24	876/1,000
Wells Fargo	488	0.58	832/1,000
Freedom Mortgage	262	0.35	829/1,000

Going off those reviews alone, you could assume that Paramount is an excellent lender to work with when buying a new home or refinancing an existing mortgage, as long as its pricing is competitive for you.

Mortgage loan products at Paramount Bank

Paramount Bank’s website lists the following mortgage loan programs in its product range:

Conventional loans: Home loans that conform to guidelines set by Fannie Mae and Freddie Mac. Many first-time home buyers can qualify with flexible down payment and credit score requirements. Keep in mind that when putting less than 20% down on a conventional loan, you typically pay private mortgage insurance (PMI) until you reach 20% home equity
Jumbo loans: A.K.A. “non-conforming loans.” These are what you want if you need an outsize loan amount (anything above $ in most areas)
FHA loan: Backed by the Federal Housing Administration, these loan types require a down payment of only 3.5%. However, you’re on the hook for mortgage insurance premiums (MIP) until you sell or refinance into a new loan program
VA loans: Backed by the Department of Veterans Affairs, these are available to select groups, mostly veterans and service members. Zero down payment required. And these often come with lower mortgage rates than others
USDA loan: This type of loan is available for low- to moderate-income borrowers in qualifying rural and suburban areas. USDA loans require 0% down and have competitive rates
FHA 203(k) loans: These so-called “rehab loans” allow you to buy a rundown home and renovate it all within the same loan. The alternative is often buying with one loan, renovating with another and then refinancing both within a single mortgage
Fixed-rate mortgages (FRMs): Fixed-rate loans offer regular monthly payments over the life of the loan term, often 15 or 30 years
Adjustable-rate mortgages (ARMs): Adjustable-rate mortgages have a fixed interest rate for the first few years. Then — within limits — their rates can float up and down with wider interest rates

That’s a respectable range of home purchase loans. Most people get one of the loan types listed above.

Refinancing with Paramount Bank

Homeowners who are looking to refinance their mortgage can choose between a rate-and-term refinance or cash-out refinancing.

Rate-and-term refinance: Exchange your original mortgage with a new one that offers more favorable loan terms or a lower interest rate
Cash-out refinance: Access your home equity by replacing your current mortgage with a new, larger loan amount, and then receiving the difference as a lump sum of cash

Homeowners who want to tap their home equity without refinancing may need to look elsewhere. This underwriter doesn’t offer home equity loans or home equity lines of credit (HELOC).

Where can you get a mortgage with Paramount Bank?

Paramount Bank has a handful of branches across six states:

Irvine, CA
Chicago, Illinois
Overland Park, Kansas
St. Louis, Missouri
Hazelwood, Missouri
Cleveland, Ohio
Houston, Texas

If you’re within striking distance of one of those branches, odds are you’ll meet with your loan officer in person.

However, Paramount is licensed to lend in all 50 states, including the District of Columbia. So if you don’t mind applying online or over the phone instead of in person, Paramount’s small branch network won’t be an issue.

You can make an initial application online. And there’s a phone number if you need help.

Is Paramount Bank the best mortgage lender for you?

In 2021 — the most recent data available — Paramount Bank proved to have lower rates, closing costs, and fees on average than many other big mortgage underwriters. And its excellent customer reviews speak for themselves.

However, mortgage rates are personal. So there’s no guarantee Paramount will be the best lender for you.

To find out for yourself, shop around with a few different lenders before choosing a mortgage. Speak with your real estate agent or Realtor about mortgage companies that are suited to your home buying needs.

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