- What is Better.com, and how does Better.com work?
- How does Better Mortgage make money?
- Reselling Mortgage Loans
- Commissions, Referral Fees (for facilitating the sale of insurance products)
- Better.com subsidiaries, acquisitions, and exits
- Better.com profit and revenue
- What is the Better.com business and revenue model?
- Better.com funding, net worth, and valuation
How does Better.com (Better Mortgage) make money if they don’t charge loan origination or service fees? Well, here is a full, in depth, breakdown of their two (2) revenue streams and the different products and services they offer, as well as the Better.com business model, their profit and revenue, and how Better.com works.
What is Better.com, and how does Better.com work?
Better.com, also known as Better or Better Mortgage, is an online platform for a faster and simpler way of originating mortgages as well as other related services.
Founded in 2014 by Vishal Garg, Better.com has now funded more than $1+ billion in total loans to tens of thousands of customers since its founding.
So, how does Better.com work? To use Better.com, simply head over to their website and choose the type of loan you’re looking for to get started.
Once you get started, get pre-approved by first answering all the questions in the online application, get a personalized rate quote, lock in your rate, and get your mortgage funded 100% online.
How does Better Mortgage make money?
According to Better.com, Better has funded more than $1+ billion in total loans since being founded back in 2104. So how does Better Mortgage make money off of all those loans?
Below is a breakdown of how much money Better.com (Better Mortgage) makes and its revenue model. Including all revenue streams and how much they charge for their services.
Here are the 2 ways of how Better.com makes money in 2022
Better Mortgage has a revenue model that makes money in two (2) ways; by reselling mortgage loans in the secondary market and by getting some type of financial or other benefits for facilitating the sale of insurance type products through their website
#1. Reselling Mortgage Loans
Better.com (Better Mortgage) makes most of its money from originating mortgage loans on its platform and reselling them.
How does Better.com make money from reselling mortgage loans? Once Better.com originates a loan, Better.com then turns around and makes money by selling those loans on the secondary mortgage market to another lender for a fee for the loan’s rights.
Note: Better Mortgage does not make any money on the frontend with loan origination or service fees, so they make it on the backend when they resell it to lenders for a fee.
#2. Commissions, Referral Fees (for facilitating the sale of insurance products)
Better.com also makes money by getting some type of financial or other benefits for facilitating the sale of insurance type products through their website.
These insurance quotes and policies are offered through Better Cover, an affiliate of Better Morgage and a digital insurance agency with sales agents that connect customers with the network of providers they work with like Nationwide, Lemonade Insurance, Hippo Insurance, and more.
You can see and read it on their Better Cover Affiliated Business Disclosure page that it says, and we quote, “I/we have read this disclosure form, and understand that the Affiliated Companies may refer me/us to purchase the above-described settlement service(s) from one another and that any such referrals may provide the referring company, its affiliates, and/or their employees with a financial or other benefit.“
Better.com subsidiaries, acquisitions, and exits
To date, the Better Mortgage Corporation has made a total of 2 acquisitions.
Better.com profit and revenue
Better.com has not released any official reports in regards to company earnings.
Note: Because Better.com is a privately held company, they are not required to make their annual reporting, such as Form 10-K’s, pubic.
What is the Better.com business and revenue model?
Better.com (Better Mortgage) makes money through a few revenue models that they combine within their company, they are:
- Fee for service (FFS) business model
- Commission based business model
- Business to business (B2B) business model
- B2B2C (partnerships) business model
- Mergers and acquisitions (M&A) business model
Better.com funding, net worth, and valuation
According to Better.com’s Crunchbase profile, Better.com has raised $905 million over 9 rounds and has a post-money valuation of $500 million to $1 billion as of April 8, 2021.