Investopedia’s Rating 4.7 Our Take For those looking to purchase a home quickly, Rate offers same-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 & Cons 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 Key Takeaways Company Overview Rate, formerly known as Guaranteed Rate Mortgage, was launched in 2000. Since its inception, it has served over 2 million customers. The Chicago-based company offers loans to customers in all 50 states, and it has a range 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. Table of Contents Rate Mortgage Loans Review 2024 Pros Explained Cons Explained Types of Mortgage Loans Offered by Rate Loan Features How to Apply Rate’s Rates and Fees Online Experience Customer Service Customer Satisfaction Account Management Other Services Alternative Lenders The Bottom Line FAQs Methodology Rate 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. 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 Best Mortgage Lenders. Rate has several key features. Your closing date can be derailed for several reasons. Be aware of common mistakes and mishaps to minimize delays. 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 provide your personal details, including your full name, email address, and phone number, to view your loan options and rates. 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. Rate is a technologically sophisticated company, offering robust digital tools. It has an easy-to-use website and online application, 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. With Rate, you can reach customer support via phone or email. You can also use its locator tool to find a loan officer near you. 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 refinancing, 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. 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. Rate services its own loans. After your mortgage closes, you can use the Rate online portal and mobile app to manage your loan and make payments. You can also use the portal or app to request mortgage assistance if you face hardships due to a job loss or illness. Besides purchase loans, Rate offers the following services and products: 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 those looking for the most cost-effective option may want to get quotes from other lenders. Rate is a well-known mortgage company. It's one of the largest lenders in the country based on originated loan volume. Rate generally requires a 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. Rate is a 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. Rate is not a mortgage broker; it's a mortgage lender with loan officers in all 50 states. Through Rate's online mortgage servicing portal or its mobile app, you can view your loan details and make your monthly mortgage payments. 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 features 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 collected 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: Read more about our process in our full mortgage lender methodology. 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 oureditorial policy. U.S. Department of Justice. "Guaranteed Rate to Pay $15 Million to Resolve Allegations It Knowingly Caused False Claims to Government Mortgage Loan Programs." Scotsman Guide. "Top Mortgage Lenders." J.D. Power. “J.D. Power 2023 U.S. Mortgage Origination Satisfaction Study.” Trustpilot. “Rate.” Freddie Mac. “When Rates Are Higher, Borrowers Who Shop Around Save More.” Federal Reserve Bank of Philadelphia. “Paying Too Much? Borrower Sophistication and Overpayment in the US Mortgage Market,” Pages 4 and 21. myFICO. “What Is a Credit Score?”:fill(white):max_bytes(150000):strip_icc()/RateLogo-bc6f91698f0d40ccbf1e42eee75c939b.jpg "Rate Mortgage Loans Review 2024 (1)")
Pros Explained
Cons Explained
Types of Mortgage Loans Offered by Rate
Rate Mortgage Loan Features
How to Apply for a Rate Mortgage
Rate’s Rates and Fees
Online Experience
Customer Service
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) @GuaranteedRate Weekdays: 8:30 a.m.–5:30 p.m. CT Customer Satisfaction
Account Management
Other Banking Services and Loans Offered by Rate
Compare Rate With Other Mortgage Loan Lenders
Rate Bank of America 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
Frequently Asked Questions (FAQs)
Is Rate Reliable?
What Credit Score Do You Need for Rate?
How Does Rate Work?
Is Rate a Mortgage Broker?
Can I Pay My Rate Mortgage Online?
How We Review Mortgage Lenders
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FAQs
Are mortgage rates expected to drop in 2024? ›
In its latest U.S. Economic Outlook, the Economics Group of Wells Fargo Bank puts the 30-year conventional mortgage rate at 6.75% in the third quarter of 2024, declining to 6.5% by the end of the year. Wells Fargo economists predict that the average rate will dip below 6% in the fourth quarter of 2025.
Will interest rates go down in 2024? ›The Federal Reserve's first rate cut of 2024 is expected to happen in September, and when it does, it could cause homebuyer competition to increase.
Will mortgage rates ever be 3% again? ›Will mortgage rates ever be 3% again? A few years ago, homebuyers could take out home loans with rates between 2% and 3%. Mortgage rates will fall over the next year, but they won't reach those levels. Housing market experts say it would take a significant economic crisis for mortgage rates to drop below 3%.
What are interest rates expected to be in 2025? ›The median estimate for the fed-funds rate target range at the end of 2025 moved to 3.75% to 4%, from 3.5% to 3.75% in December.
Will 2024 be a better time to buy a house? ›Yes. This is the best time to buy a house in California. With the current trend in the CA housing market, you'll find better deals on your dream home during Q2 2024. As per Fannie Mae, mortgage rates may drop more in Q2 of 2024 due to economic changes, inflation, and central bank policy adjustments.
Should I lock my mortgage rate today? ›While mortgage rates could fall in 2024, it's not a given. If you're risk-averse and want to avoid any chance of your mortgage rate increasing, locking in your mortgage rate today may be the best option. But if you think rates will drop before you make an offer, choosing not to have a rate lock could make more sense.
What is the interest prediction for 2024? ›At present, markets are pricing in one further rate cut in 2024. If forecasts are correct, this could mean base rate will fall to 4.75 per cent by the end of 2024.
Where will mortgage rates be in 2025? ›A best-case scenario probably has mortgage rates dipping into the 4% range by the end of 2025. But rates in the 5% range are more likely. Buyers also shouldn't necessarily expect sub-6% mortgage rates at the start of 2025.
What will mortgage rates be in 2026? ›The 10-year treasury constant maturity rate in the U.S. is forecast to decline by 0.8 percent by 2026, while the 30-year fixed mortgage rate is expected to fall by 1.6 percent. From seven percent in the third quarter of 2023, the average 30-year mortgage rate is projected to reach 5.4 percent in 2026.
Will interest rates go down to 2.5 again? ›"All FOMC members believe that rates will be stable or higher through 2023 before slowly coming down in 2024–2025 to settle at a comfortable 2.5% for the longer-term," she says. Elliot Eisenberg, the Chief Economist at Graphs and Laughs agrees.
Should I buy a house now or wait for a recession? ›
Even if a recession doesn't affect you directly, if your area is hard-hit, that could have a serious effect on the local real estate market. Fewer people with the means to buy means a lower chance of homes selling, which could keep homeowners from listing and decrease your options as a buyer.
Will mortgage rates ever go down to 4 again? ›Mortgage rate predictions
As you can see, both predict rates will drop over the coming year or two, but very gradually. Experts also don't expect any drastic dips in rates — say to 3% or 4%, as experienced during the height of the COVID-19 pandemic.
Predictions and future outlook for mortgage rates
The MBA forecast suggests that 30-year mortgage rates will fall to the 6.6% by the end of 2024, while Fannie Mae and NAR predict rates will end the year around 6.7%. However, current mortgage rates are already technically below these levels.
In June, the consumer price index fell to 3%, the lowest it's been in over three years. At that point, the Fed projected the fed funds rate would be cut to 5.1% by the end of 2024. The CME Group's FedWatch tool, which measures the probability of a rate adjustment, has predicted the first cut will come in September.
What will interest rates be in 2026? ›While 2026 is expected to be on a par with 2025, at 1.0%. The interest rate peaked at 5.25% in 2023 and is expected to be cut to 4.75% by the end of 2024. It is expected to be cut to 4.35% by the end of 2025 and then to 3.95% at the end of 2026.
Will mortgage rates go down in 2027? ›However, increases should slow between 2024 and 2026, and rates may even decline in 2027. Among the factors that could impact mortgage rates in the next 5 years are inflation, Federal Reserve policy, and economic growth. Homebuyers should consider locking in a low mortgage rate now, as rates are expected to rise soon.”
What is the forecast for Euribor in 2024? ›According to Bankinter's Analysis Department, the 12-month Euribor could fall to 3.25% in 2024 and then to 2.75% in 2025. At the same time, S&P projects that interest rates in the eurozone, after reaching a peak in 2023, will begin to decrease in 2024, stabilizing at an equilibrium level between 2% and 2.25%.
Are interest rates going down in September? ›The Federal Reserve is expected to begin lowering interest rates in September, which means mortgage lenders will lower rates as well. But mortgage rates are already trending down and are expected to continue dropping the rest of this year.
Will interest rates go down in 2024 for cars? ›The auto loan rate forecast for 2024 suggests a cautiously optimistic outlook. While rates are not expected to plummet, there is potential for a modest decline as the year progresses, particularly if inflation continues to subside and the economy remains stable.