Rate (Guaranteed Rate) mortgage review 2025

Core Insights - Rate, previously known as Guaranteed Rate, is recognized as an online mortgage lender that combines online convenience with local branch access, boasting around 300 branches nationwide [2][41] - The company is noted for its quick loan approval process and a strong home equity line of credit offering, although it scores significantly below average in customer satisfaction according to J.D. Power [2][6][43] Loan Products - Rate offers a variety of home loan products including conventional loans, FHA loans, VA loans, and a "Same Day Mortgage" that promises loan approval within 24 hours [6][7] - The lender provides non-qualified mortgages for self-employed borrowers and has a 1%-down-payment program, although this is not prominently featured on its website [6][9] - FHA loans require a minimum FICO score of 620 for a 3.5% down payment, while VA loans offer benefits such as no down payment and no mortgage insurance [14][16] Customer Experience - Rate's customer satisfaction is rated below average, with a score of 2 out of 5 stars for both mortgage rates and total loan costs, indicating higher-than-median mortgage rates of 6.6% and total loan costs of $6,321.00 in 2024 [26][24] - The application process can be completed online, by phone, or at a branch, with a focus on a streamlined experience, although more detailed guidance on required documentation could enhance user experience [27][31] Comparison with Competitors - Compared to competitors like Guild Mortgage and Bank of America, Rate does not aggressively promote low-down-payment options, which may be a disadvantage for first-time home buyers [35][39] - Rate allows for a lower qualifying credit score of 620 for HELOCs, while Guild requires a score of 660, providing flexibility for borrowers [36] Company Background - Founded in 2000 by Victor Ciardelli, Rate has become one of America's top 20 mortgage lenders, originating over 124,000 home loans in 2024 [41][42] - The rebranding from Guaranteed Rate to Rate in July 2024 aims to modernize the company's image and reflect a new era of growth and innovation [44]