Guaranteed Rate is a nationwide mortgage lender, offering a variety of mortgage loans, personal loans, home equity loans, reverse mortgages, and more. It originated more than 175,000 mortgage loans in 2022 alone.
Guaranteed Rate is known for its easy digital process and its customer service. The company is in the top 10 lenders for customer satisfaction, according to JD Power.
Are you considering using Guaranteed Rate for your home purchase or to refinance an existing mortgage? Here’s what to know about the lender and what it has to offer.
Guaranteed Rate mortgage review
Guaranteed Rate mortgage types and terms
Conventional loans: Guaranteed Rate offers both 15-year and 30-year fixed-rate conventional loans and 5-, 7-, and 10-year adjustable-rate conventional loans. These require at least a 3% down payment.
Jumbo loans: Guaranteed Rate also offers jumbo loans, which can be used for homes that are priced above conforming loan limits ($726,600 in most parts of the country in 2023).
FHA loans: You can also get anFHA loan at Guaranteed Rate. These are mortgages backed by the Federal Housing Administration. They require at least a 3.5% down payment.
VA loans: For veterans, military members, and their spouses, Guaranteed Rate has VA loans — mortgages backed by the U.S. Department of Veterans Affairs. These require no down payment.
HELOCs: For existing homeowners, Guaranteed Rate offers a home equity line of credit, or HELOC. This lets you turn your home equity into a line of credit you can withdraw from as needed, much like you would a credit card.
Reverse mortgage: Reverse mortgages — also called Home Equity Conversion Mortgages (HECMs) — are another option Guaranteed Rate has for existing homeowners. These allow seniors to turn their home equity into regular monthly payments or a line of credit. The loan is only repaid when you sell the home, move away, or pass on.
Home renovation loans: Homeowners looking to update their properties or make repairs can use Guaranteed Rate’s home renovation loans. The lender has several types to choose from, depending on your goals and budget.
Guaranteed Rate does not offer U.S. Department of Agriculture (USDA) mortgages, which can be used in rural and some suburban parts of the country.
Guaranteed Rate mortgage rates
Guaranteed Rate is very transparent about its interest rates and even offers a customizable tool that lets you check your rate for various loan programs based on your home price, down payment, and exact ZIP code.
Generally speaking, its rates are lower than its competitors. For example, on Oct. 30, 2023, its 30-year rate was 7.425% — much lower than the 7.88% industry average. The company’s lowest advertised rates are currently on 15-year fixed-rate FHA loans.
Guaranteed Rate requirements
The exact requirements you’ll need to meet at Guaranteed Rate depend on the type of mortgage loan you decide to go with. Generally speaking, though, the lender requires at least a 620 credit score to qualify. You will also need at least a 3% down payment (unless you’re eligible for a VA loan.)
Pros and cons of Guaranteed Rate
The biggest advantage of Guaranteed Rate is the many mortgage options it has to offer. There are loans for new homebuyers, existing homeowners, veterans, and more. You can also apply online or via mobile app, get approved within five minutes, and even close on your loan digitally (sometimes in as few as 10 days).
Guaranteed Rate also serves all 50 states, is one of JD Power’s top lenders for customer satisfaction, and has an A+ rating with the Better Business Bureau.
One the downside, Guaranteed Rate does not offer USDA loans, and it only has physical locations in 46 states.
Guaranteed Rate lets you apply online or via its mobile app. You can also upload documents digitally and even sign paperwork and close on your loan remotely. The lender also has physical locations throughout the country if you’d prefer to work with a loan officer in person.
Who is Guaranteed Rate right for?
Guaranteed Rate mortgage might be the right choice if you’re a homebuyer and want low rates, a quick approval/closing, and an easy online process. If you’re an existing homeowner looking to tap your home equity, it can also be a smart move.
However, Guaranteed Rate isn’t the right fit if you want a USDA loan, as it does not offer this mortgage program.
Compare several lenders
Guaranteed Rate could be the best mortgage lender for your needs, but make sure to compare at least several other lenders and banks before moving forward. Look at customer rates, fees, loan offerings and, of course, rates. For the lowest rates, Freddie Mac recommends getting at least four loan quotes. This will save you about $1,200 annually in interest, according to its research.
Editorial Disclosure: All articles are prepared by editorial staff and contributors. Opinions expressed therein are solely those of the editorial team and have not been reviewed or approved by any advertiser. The information, including rates and fees, presented in this article is accurate as of the date of the publish. Check the lender’s website for the most current information.
This article was originally published on SFGate.com and reviewed by Lauren Williamson, who serves as Financial and Home Services Editor for the Hearst E-Commerce team. Email her at [email protected].