Rate Mortgage Review 2024
Ratings and reviews are from real consumers who have used the lending partner’s services.
Ratings and reviews are from real consumers who have used the lending partner’s services.
620
0% to 3.5%
Conventional, FHA, VA, USDA, jumbo, HELOCs
See how we reached our verdict below.
- Loads of purchase and refinance options, including hard-to-find specialty loans for physicians or for self-employed borrowers
- Same Day Mortgage option promises approval in one day
- Physical locations in nearly every state
- Must agree to be contacted in order to get personalized rates
- HELOCs have less time than usual to use them and repay them
Rate mortgage overview
Rate was founded in 2000 and operates nationwide. Until July 2024, it was known as “Guaranteed Rate,” and it still uses that name in New York.
- Areas of service: 50 states
- Digital service: Online lender with physical branches in every state but Vermont
- Headquarters: 3940 N. Ravenswood, Chicago, IL, 60613
- Website: Rate.com
Rate rates, terms and fees
Rates
Rate publishes current mortgage rates online for some of its loan options, but you’ll have to give them your contact information to see rates customized for your location, credit score and other details.
Rate’s prices are pretty competitive with what other lenders charge. Its average rate for 2023 was just 0.02 percentage point above the average prime offer rate (APOR), which is what a well-qualified borrower would pay at a typical lender.
In fact, this is a sharp drop from 2022, when Rate’s average was 0.39 points above APOR.
Fees
The average total origination fee for a Rate home loan was $3,110, according to 2023 Home Mortgage Disclosure Act (HMDA), which is within the standard industry range.
Rate also lists fees for a typical mortgage on its “Mortgage Rate Assumptions” page.
What discounts does Rate offer?
With Rate’s RateReduce Sell program, someone selling their home can sweeten the deal by paying a fee to reduce the mortgage rate and lock it in for the buyer for 60 days.
Of course, the seller could also just buy mortgage points to save the buyer money that way, but Rate’s program formalizes the process.
What types of mortgage loans does Rate offer?
Rate offers a variety of home loans including:
Conventional loans
Rate offers fixed-rate mortgages, adjustable-rate mortgages (ARMs), rate-and-term refinancing and cash-out refinancing.
Conventional loan qualification requirements
- 620 minimum credit score
- 3% minimum down payment
FHA loans
Rate offers loans backed by the Federal Housing Administration (FHA), including purchase, refinance, FHA cash-out refinance and home improvement loans.
FHA loan qualification requirements
- 620 minimum credit score for Federal Housing Administration (FHA) loans
- 3.5% minimum down payment
VA loans
Rate offers loans backed by the U.S. Department of Veterans Affairs (VA), including purchase, VA cash-out refinance, interest-rate reduction (IRRRL), home renovation and rehab, and construction loans.
VA loan qualification requirements
- No down payment required for borrowers with a full VA loan entitlement
- No minimum credit score is set by VA loan requirements, but Rate has options for borrowers with credit scores as low as 580
- Private mortgage insurance not required for VA loans
USDA loans
Rate offers loans backed by the U.S. Department of Agriculture (USDA) for borrowers in rural areas, including purchase, refinance and home improvement loans.
USDA loan qualification requirements
- No down payment and flexible credit score requirements
- Income cap ensures loans go to borrowers with low to moderate incomes
- Check U.S. Department of Agriculture (USDA) eligibility map to be sure home is in a designated rural area
Jumbo loans
Rate’s jumbo loans are available for fixed rates for 10, 15, 20 and 30 years, and with adjustable rates for five, seven and 10 years.
Jumbo loan qualification requirements
- Loan amounts up to $1.5 million
- Minimum credit score of 700
Home equity lines of credit
Rate’s home equity lines of credit (HELOCs) are available with a draw period of two to five years and a repayment period of 10 years. These are shorter than usual, while many other lenders offer draw periods of around 10 years and repayment periods of about 20 years.
HELOC qualification requirements
- 85% combined loan-to-value (CLTV) ratio maximum
Rate mortgage qualifications
| Credit score minimum | 580 to 620 |
| Down payment minimum |
|
| DTI ratio Debt-to-income (DTI) ratio compares your monthly gross income to your monthly debt payments. maximum |
|
Don’t know your credit score? Get your free score on LendingTree Spring today.
How to boost your loan approval odds
Rate doesn’t disclose the exact minimum requirements it uses to approve or deny your application.
However, HMDA data for 2023 shows:
- The average home purchase loan which Rate approved had a loan-to-value (LTV) ratio of just over 85%.
- A small majority of customers approved had a debt-to-income (DTI) ratio above 40%.
- Rate denied only about 7% of all home loan types (and just under 6% of purchase loan applications). Most other large lenders have denial rates in the low teens up through the mid-thirties.
How to apply for a Rate mortgage
1. Choose your loan type
From the Rate.com homepage, click on “Get started” in the header or the “I’m purchasing” or “I’m refinancing” buttons. All of those will take you to an application page.
2. Get prequalified
You’ll need to supply some financial and personal information, but it’s the surest way to see mortgage rates you can qualify for.
3. Submit a loan application
Submitting a full application online will get you preapproved, rather than just prequalified. Once approved, Rate will lock your mortgage rate for 40 days.
Documents you’ll need for prequalification or preapproval
- Identification
- Tax documents
- Bank statement
- Pay stubs
- Debt and asset statements
- Gift letters (if you’re using gifted funds)
Find out more about how to apply for a home loan.Is it safe to get prequalified with Rate?
Yes, it’s safe to get preapproved or prequalified with Rate. Although in many cases preapproval involves a hard pull on your credit, with Rate it’s just a soft pull. (Though even with a hard pull, the effects on your score are small and temporary).
It’s best to get preapproved before you start shopping for homes because many sellers won’t take your offer seriously until you do. Plus, your real estate agent might not be willing to show you homes if you don’t have a preapproval letter.
Rate’s customer service experience
You can contact Rate Monday to Friday, 8:30 a.m. to 7 p.m. CST. You can also get answers in a chat on the Rate website, although it is a virtual assistant rather than a live chat.
- Email: [email protected]
- Phone: 866-934-7283
If you’re already a customer and have questions about your loan, you can also reach out to Rate from a customer-service page on its website that allows you to access your loan information, or you can ask questions in a chat with an AI agent.
How does Rate compare to other lenders?
 |  |  |
|
|---|---|---|---|
| LendingTree’s rating | |||
| Minimum credit score | 620 | 580 to 620 | 580-620 |
| Minimum down payment | 0% to 3.5% | 0% to 3% | 0% to 3.5% |
| Rate spread Rate spread is the difference between the average prime offer rate (APOR) — the lowest APR a bank is likely to offer any private customer — and the average annual percentage rate (APR) the lender offered to mortgage customers in 2023. The higher the number, the more expensive the loan. | 0.02% | -0.04% | 1.11% |
| Loan products and programs |
|
|
|
| Better for: | Prospective home buyers who are pressed for time. | Buyers willing to use the lender’s network of real estate agents to help save money on closing costs. | Borrowers seeking down payment assistance or who want to see mortgage rates customized by location and credit score. |
Rate vs. Better Mortgage
Rate and Better Mortgage each offer a similar package of mortgage options — conventional, FHA, VA, jumbo loans and home equity lines of credit (HELOCs) — although Rate has locations in nearly every state, while Better is an online-only lender.
Rate can help a borrower save money with its RateReduce Sell program to cut mortgage rates.
Meanwhile, Better’s agent program can save you money on closing costs, but you’ll have to use one of the lender’s preferred agents.
→ Read more in our full Better Mortgage review.
Rate vs. Flagstar Bank
Flagstar offers a more traditional banking experience and a slate of loan options similar to Rate’s. However, Flagstar doesn’t offer USDA loans that can be an option for borrowers in rural areas. Flagstar branches are limited to a handful of states.
Rate’s Same Day Mortgage can help speed along the approval process for buyers without a hard credit pull.
On the other hand, Flagstar allows borrowers to see customized rates without making contact with a lender representative.
→ Read more in our full Flagstar Bank review.
Ready to compare lender offers on LendingTree? Get Your Rates TodayHow LendingTree rated Rate
LendingTree’s mortgage lender rating is based on a five-point scoring system that factors in several features, including digital application processes, available loan products and the accessibility of product and lending information.
LendingTree’s editorial team calculates each rating based on a review of information available on the lender’s website. Lenders receive a half-point on the “offers standard mortgage products” criterion if they offer only two of the three standard loan programs (conventional, FHA and VA). In some cases, additional information was provided by a lender representative.
Rate’s scorecard:
Publishes rates online
Offers standard mortgage products
Includes detailed product info online
Shares resources about mortgage lending
Provides an online application
= 0 points = 0.5 points = 1 point
Frequently asked questions
Rate allows you to apply and get approved online. You can also look at current mortgage rates, including APR and points, for easy comparison with other lenders.
Rate is a legitimate mortgage lender in business for nearly 25 years and is licensed in all states and the District of Columbia.
You can view more info about Rate’s state licenses and registrations through the Nationwide Multistate Licensing System and Registry (NMLS) website.
Taking out a mortgage affects your credit, but in most cases, your score is likely to drop by only about 20 points. And even if your score does go down by more than that, it should rebound fully within a year. However, Rate promises that the preapproval process will not affect your credit score.
Rate has a 3.9 (out of 5) rating with the Better Business Bureau. This means a majority of the more than 160 Rate customers who left reviews were generally satisfied with the service they received.
Of the customers who left critical reviews, one common theme was frustration with communication and with delays. However, delays are a common issue for many mortgage lenders across the board.