State Farm Mortgage – In-Depth Review of State Farm’s Home Purchase Loans

State Farm has roots dating back to 1922 when it extended its first auto insurance policy. It has grown since then, forming a large group of insurance and financial service companies.

With over 70,425 employees, 18,000 agents, 343 claim offices, and 30 operations centers, the State Farm Group is the largest property-casualty insurer in the U.S.

Further, it also offers banking products such as credit cards, auto loans, and home mortgage loans.

In this in-depth review, we will examine this insurer’s mortgage offering to help you determine if it’s worth considering.

State Farm Mortgage offerings

First, let’s take a look at State Farm’s mortgage offerings.

Purchase a home

State Farm offers mortgages for customers who want to purchase a home. They can choose from a fixed-rate mortgage, adjustable-rate mortgage, or jumbo mortgage.

Fixed-rate mortgages have a set interest rate for the entire length of the loan term. As a result, the payment amount stays the same. Terms are available from 10 to 30 years.

Adjustable-rate mortgages typically offer lower interest rates and monthly payments, which will increase over time. Rates are fixed for a period and then begin adjusting.

State Farm has products such as a 5/1, 7/1, and 10/1, with the first number representing how many years the loan is fixed and the second telling how often the rate will adjust afterward.

Jumbo loans are for properties that cost more than $453,100, thus exceeding the maximum amount established by the Federal National Mortgage Association (FNMA). They can be either fixed or adjustable.

Find out how to find the best mortgage rates online.

Refinance your current home

State Farm also offers mortgage refinancing which can help customers to gain access to their equity, lower their monthly payments, or pay off their home loan faster.

Again, fixed and adjustable rate loans are available. Borrowers can refinance the amount they owe on their house and can cash out the equity they have earned.

Learn the pros and cons of refinancing your mortgage. 

To find out which mortgage products will be available to you, State Farm offers a tool called the “Loan Finder.” You enter the details about what you would like to do, and it generates a list.

Further, you can get advice directly from a mortgage expert by submitting a home finance inquiry on the State Farm website, or by calling 1-833-368-4217.

State Farm Mortgage closing costs

The closing costs with State Farm Mortgage are standard and will include all loan transaction expenses and fees.

These can include but are not limited to, the fees for an appraisal, title insurance, pulling credit reports, and points. The total will depend on which loan product you get and the customary fees where you live.

Note, points are a one-time charge or credit from the lender that are used to lower the interest rate on a loan. Each point is equal to 1% of the principal loan amount.

Read about the hidden costs of refinancing a mortgage.

State Farm’s Moving Made Simple Program

Moving Made Simple is a free real estate assistance program for State Farm customers that is designed to help ease the process of finding and buying a new home.

The main benefits include a cash bonus on your real estate transaction and a referral to a real estate agent in your area that is trained and certified.

Additionally, the program provides the following resources:

  • Helpful tips on real estate transactions
  • Access to multiple listings nationwide
  • Insight into neighborhoods, communities, and schools in your desired area

Registration can be completed on the State Farm website or by calling 1-877-740-9861.

State Farm Mortgage payments and customer service

Customer service is reachable by phone Monday through Friday from 6 AM to 11 PM CT, and weekends and holidays from 8 A.M to 8 P.M CT. The State Farm Mortgage phone number is 1-877-734-2265.

Once you are a customer, you can create a State Farm Mortgage login and password to enroll your mortgage loan online. After doing so, you will be able to manage it and make payments.

Additionally, you can enroll in automatic payments which will pull the amount you owe from a checking or savings account on the same day each month. You can also mail in your payment if you prefer.

If you would like to pay off your loan, you can request a payoff statement by calling 1-877-734-2265, faxing 877-734-2265, or writing to the following payoff address:

State Farm Bank
P.O. Box 77404
Ewing, NJ 08628

Want to hear from past customers? Read State Farm Mortgage reviews here. 

State Farm Mortgage application process

Looking to apply for a mortgage?

First, make sure you have the following documents regarding your income, employment, assets, debts, and the property you intend to refinance or purchase:

  • The street addresses for every place you have lived over the past two years
  • Two years of employment history including names, dates, and addresses
  • Your most recent pay stub that shows your year-to-date income
  • Past two years of tax returns to verify your income
  • Two most recent statements that verify your assets
  • Sales contract if you are buying a new home

Once you have all this ready, call 1-833-368-4217 or submit a home finance inquiry on the website.

Once you submit your application, you will have a mortgage consultant working on your loan. You will be able to lock in a rate once you sign initial disclosures, and pay the vendor fee.

If you choose not to, you will need to do so at least five business days before closing.

Learn more about mortgage preapproval.

State Farm Mortgage: Is it right for you?

So should you choose State Farm as the lender for your next mortgage?

WEIGH THE PROS AND CONS

Compare the pros and cons to make a better decision.

Pros
  • A wide range of mortgage loan options
  • Competitive interest rates
  • Moving Made Simple program
  • Stable, well-known company
  • Lock in your rate
Cons
  • No online pre-qualification process
  • Poor online reviews
  • May not offer the best deal

The verdict

State Farm is a reputable company with a wide range of mortgage loan products.

While it does have quite a few poor customer reviews, it may offer a good solution for some customers. However, to know for sure, you’ll have to shop around.

Check out a few lenders (tip: check the top mortgage lenders of 2018) to see how they compare in terms of closing time, customer service, loan products, total cost, customer reviews, and how well they keep up with industry trends.

Start by reviewing company details and comparing rates side-by-side on our mortgage lenders review page.

Then, get quotes from the top companies to see which one can provide you with the best overall value.

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