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Rate Mortgage Loans Review

Rate boasts quick loan approvals and remote mor🤡tgage clo🐻sings

By

澳洲幸运5官方开奖结果体彩网:Kat Tretina

Updated December 30, 2024

Fact checked by

Betsy Petrick

Rate

Investopedia’s Rating

4.7

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Our Take

For those looking to purchase a home quickly, Rate offers sa꧅me-day mortgage approvals and a completely remote closing experience in some states with down payments as low as 3%. However, it may charge higher fees than other lenders.

Pros

Same-day mortgage approval available
Offers remote closing options
Accepts down payments as low as 3%

Cons

Poor customer satisfaction ratings
Higher-than-usual lender fees

Rate (previously Guaranteed Rate) launched in 2000.
With Rate, borrowers in all 50 states can choose from FHA, VA, USDA, conventional, and jumbo loans.
Rate has purchase and mortgage refinancing options.
Rate also offers insurance products, personal loans, home equity lines of credit (HELOCs), and reverse mortgages.

Rate, formerly known as Guaranteed Rate Mortgage, was launched in 2000. Since its inception, it has se🎃rved over 2 million customers. The Chicago-based company offers loans to customers in all 50 states, and it has a ran𒈔ge of mortgage products available, including Federal Housing Administration (FHA) and Department of Veterans Affairs (VA) loans.

In 2020, Rate agreed to pay the U.S. over $15 million to resolve allegations that it violated the False Claims Act and the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA). According to the Department of Justice's allegations, the company knowingly violated government mortgage program requirements.

However, Rate is one of the top retail mortgage lenders in the country based on the volume of originated mortgages.

Rꦆate is a mortgage lender that uses digital tools to accelerate and streamline the mortgage process. Using the app or online application, customers can apply for a mortgage in as little as 15 minutes, and borrowers can even close the loan remotely.

However, Rate has poor customer satisfaction ratings in the J.D. Power Mortgage Origination Satisfaction Study, and its lender fees are higher than those at other lenders.

Tip

Rate is our pick for the best mortgage lender for range of loan types and the best mortgage lender for fast closing. Find out why—and learn about other winners—in our ranking of the 澳洲幸运5官方开奖结果体彩网:Best Mortgage Lenders.

Pros Explained

Same-day mortgage approval available: In many cases, Rate can approve your mortgage application as soon as the same day you apply. A quick approval can help you jump-start the homebuying process.
Offers remote closing options: Rate allows borrowers to close their mortgages remotely through its online portal and mobile app.
Accepts down payments as low as 3%: Rate has conventional loan options with down payments as low as 3%, making it a good choice for those with limited funds.

Cons Explained

Poor customer satisfaction ratings: Rate scored poorly for customer satisfaction on the J.D. Power Mortgage Origination Satisfaction Study, and it also has less-than-stellar ratings on Trustpilot. Bad reviews don't necessarily mean you will have the same experience, but you should be aware of common issues among customers.
Higher-than-usual lender fees: On most loans, Rate charges a higher-than-usual lender fee.

Types of Mortgage Loans Offered by Rate

Conventional fixed-rate mortgages: Rate offers 15- and 30-year mortgages that fit conforming loan limits.
Department of Veterans Affairs (VA) loans: VA loans are available to military service members and veterans to help them buy homes without a down payment.
Federal Housing Administration (FHA) loans: 澳洲幸运5官方开奖结果体彩网:FHA loans are mortgages with low down payment and credit score requirements.
Jumbo loans: 澳洲幸运5官方开奖结果体彩网:Jumbo loans are for higher-priced properties. Rate offers both fixed- and adjustable-rate mortgages.

Rate Mortgage Loan Features

Rate has several key features.

Educational tools: Rate has educational articles, process sheets, and calculators you can use to inform yourself during the mortgage process.
Mobile app: Rate's mobile app allows you to apply for mortgages online and, after closing, make payments online.

How to Apply for a Rate Mortgage

Fill out the online form: You can apply online or through the mobile app within a few minutes. However, you must enter some personal information, including your email and phone number, to proceed.
Enter details: Next, enter information about the type of property you're looking to buy and your price range.
Consent to a credit check: The platform will ask you to consent to a credit inquiry, which can affect your credit score.
Shop for a home: If you're approved, the lender will give you a pre-approval letter. This letter can help you narrow down your home shopping options and stand out as a more desirable buyer.
Schedule an inspection and appraisal: Once you find a home and place an offer, the lender will schedule an inspection and appraisal.
Wait for final approval: After the inspection and appraisal, the lender will perform the final underwriting process and issue the full approval. It may require additional documentation, such as your tax returns or recent bank statements.
Schedule closing: Once the underwriting process is complete, the lender will schedule your closing date. In many cases, you can opt to sign the documents online, meet with the notary virtually, and close the mortgage remotely.

Warning

Your closing date can be derailed for several reasons. Be aware of 澳洲幸运5官方开奖结果体彩网:common mistakes and mishaps to minimize delays.

Rate’s Rates and Fees

In general, Rate's mortgage rates align with the industry average. However, when you evaluate total costs, remember that the lender has higher fees than other companies.

Rate does allow you to get quotes online, but you must provid🐻e your personal detai𒀰ls, including your full name, email address, and phone number, to view your loan options and rates.

Important

Getting multiple quotes is important when shopping for a home loan. In fact, according to a report by Freddie Mac, borrowers who seek at least four quotes have an average annual savings of $1,200. Another study by the Federal Reserve Bank of Philadelphia found that seeking at least one additional rate quote results in an 18-basis-point rate reduction and a 28-point reduction for lower-income borrowers.

Online Experience

Rate is a technologically sophisticated company, offering robust digital tools. It has an easy-to-use website and online applic♊ation, allowing you to apply for a mortgage in a matter of minutes. And with the digital close option, you can have a contactless mortgage closing.

The site also has educational articles and resources, including calculators and guides. Its detailed guides and lists can be helpful tools for first-time homebuyers or those who want additional guidance.🃏

Customer Service

With Rate, you can reach cust�🦹�omer support via phone or email. You can also use its to find a loan officer near you.

Medium	Contact	When
Telephone	866-934-7283	Weekdays: 8:30 a.m.–5:30 p.m. CT
Email	customercare@rate.com	Weekdays: 8:30 a.m.–5:30 p.m. CT
X (formerly Twitter)		Weekdays: 8:30 a.m.–5:30 p.m. CT

Customer Satisfaction

Rate has mixed to negative reviews from customers. On Trustpilot, it has a rating of 1.8 out of five based on approximately 20 reviews. Most of the negative reviews concern issues with mortgage refina🌜ncing, with customers citing delays with loan processing and issues contacting their loan officers.

J.D. Power ranked Rate 22nd out of 27 mortgage lenders in its Mortgage Origination Satisfaction Study, scoring well below the industry average.

Tip

To find the best lender, request quotes from several companies and research the lenders' reputations for customer service. You can use our list of the best mortgage lenders as a starting point.

Account Management

Rate services its own loans. After your mortgage closes, you can use the Rate online portal and mobile app to manage your loa﷽n and make payments. You can also use the portal or app to request mortgage assistance if you fa⛄ce hardships due to a job loss or illness.

Other Banking Services an🐟d Loans Offered by Rate

Besides purchase loans, Rate offers the following services andও products:

Personal loans: With Rate, you can borrow up to $50,000 with an unsecured personal loan. You can receive the funds in one to two business days and repay the loan over one to five years.
Home equity lines of credit (HELOCs): If you're already a homeowner and have equity in your property, you can borrow against that equity and access a revolving line of credit with Rate's HELOCs.

Compare Rate With Other Mortgage Loan Lenders

	Rate	澳洲幸运5官方开奖结果体彩网:Bank of America	澳洲幸运5官方开奖结果体彩网:Rocket Mortgage
Star Rating	4.65	4.57	4.80
Online Application	Yes	Yes	Yes
Average Days to Close	18	30	37.5
Customer Experience Score	86%	84%	100%
Minimum Credit Score	620	660	680

The Bottom Line

If you're shopping for a house in a hot, highly competitive housing market, Rate could be a good choice. It offers mortgage approvals as soon as the same day you submit your application and faster-than-usual closing dates.

Its rates are within the industry average, but its 🌱loans can have higher fees, so tho🎶se looking for the most cost-effective option may want to get quotes from other lenders.

Frequently Asked Questions (FAQs)

Is Rate Reliable?

Rate is a well-known mortgage company. It's one of the largest lenders in the country based on 澳洲幸运5官方开奖结果体彩网:originated loan volume.

What Credit Score Do You Need for Rate?

Rate generally requires a 澳洲幸运5官方开奖结果体彩网:credit score of 620 or better to qualify for its mortgages. If you have a score of 620, you're in the "fair" credit category.

How Does Rate Work?

Rate is a 澳洲幸运5官方开奖结果体彩网:mortgage lender that issues home loans in all 50 states. Borrowers can apply for mortgages online or through its mobile app, and its digital platform also♚ enables customers to close remotely.

Is Rate a Mortgage Broker?

Rate is not a 澳洲幸运5官方开奖结果体彩网:mortgage broker; it's a mortgage len💮der with loan officers in all 50 states.

Can I Pay My Rate Mortgage Online?

Through Rate's or i🦂ts mobile app, you can view your loan details and make your m💖onthly mortgage payments.

How We Review Mortgage Lenders

In March 2024, we conducted a consumer survey, collecting 500 responses from current or prospective homebuyers and mortgage borrowers to understand what is most important when selecting a lender. We asked them 41 questions about the home-buying and mortgage-shopping experience and learned what featuღres and services were most important to them. Our team of researchers analyzed the results, and this information fueled our list of 38 mortgage lenders and 55 criteria for our rubric.

We then colleܫcted over 2,000 data points, surveying mortgage lenders and collecting data via media contacts, websites, and customer service between May 31 and June 28, 2024. To develop our list of the best mortgage lenders, we weighted 36 of the 55 individual criteria, giving higher weight to those criteria that mean the most to borrowers. The score for each company’s overall star rating is a weighted average of those criteria in the following categories:

Customer Experience: 48%
Operational Features: 16%
Reputation: 14%
Loan Types: 11%
Loan Costs and Requirements: 11%

Read more about our process in our full 澳洲幸运5官方开奖结果体彩网:mortgage lender methodology.

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Article Sources

Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy.