Guaranteed Rate Mortgage Review: Is It the Right Mortgage Option for You?
Written by
Angela Mae
Edited by
Emily Gadd
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
20 Years
Helping You Live Richer
Reviewed
by Experts
Trusted by
Millions of Readers
Guaranteed Rate is a 25-year-old mortgage lender. The Chicago-based mortgage lender operates under a business model that provides loan officers with a team of specialists to streamline the process for customers.
With Guaranteed Rate, you get a digital-first lending experience. This makes it an excellent option for those seeking a quick, online process for their homebuying–and refinancing–needs.
How the Guaranteed Rate Mortgage Process Works
Guaranteed Rate offers a fully digital application process. If you meet the eligibility requirements, you could get approved in as little as one business day, making for a potentially speedy closing process.
You can apply for a mortgage loan in all 50 states and the District of Columbia. Guaranteed Rate also has branches in every state except Vermont, although many states with branches have fewer than 10 locations.
The fully online application takes just 10 to 15 minutes to complete, and you can do it from the website or mobile app or, if you prefer, by calling 866-934-7283. Have the following documents on hand before you begin:
- Pay stubs from last 30 days
- W-2 forms from last two years
- Tax returns from last two years
- Recent bank statements
- Copy of your credit report (so you know what you’re likely to get approved for)
- Documentation relating to assets or debts
A loan officer will contact you after your application has been approved and let you know if additional documentation is required.
With same-day approval, you can be cleared to close in one day with just 3% down, assuming you provide requested documents within eight hours — which also scores you a $250 lender credit.
Guaranteed Rate notes on its website that its Net Promoter Score, which measures how likely customers are to recommend the lender, is over twice the national average. However, the lender does fall short in one area — customer service availability. Borrowers must call during business hours for assistance with servicing.
Pros and Cons of Guaranteed Rate
Pros:
- Fully digital application
- Available in all 50 states and D.C.
- Offers competitive rates
- One-day approval for fast closing
- Offers HELOCs, HECMs and special loan programs
- High customer satisfaction rating
- Convenient mobile app
- Get up to $6,000 when you buy or sell your home through the GRate Realty Connect Program
Cons:
- Limited number of physical branches
- No home equity loans
- Limited customer service availability
Guaranteed Rate Loan Options
Guaranteed Rate offers most standard purchase loans, including 15- and 30-year fixed-rate, 5/7/10-year adjustable-rate mortgages as well as VA, FHA and USDA government-backed loans and jumbo mortgages. In addition, it has loans many lenders don’t offer. Borrowers with special financing needs will find a variety of products, including:
- Nonqualified mortgages that fall outside of standard lending guidelines
- Physician loans allowing medical professionals to buy with less money down, even if they have significant student loan debt
- Bank statement loans allowing self-employed individuals to qualify for financing based on their bank deposits and balances
- Interest-only loans for real estate investors and others who hold property for only a short time and want the lowest possible payment during that period
- Foreign national loans for non-U.S. citizens
Guaranteed Rate also offers the usual selection of refinance loans (like a cash-out refinance), plus some that serve unique needs.
HELOC
Many lenders stopped issuing home equity lines of credit during the pandemic, and some, including major lenders like Chase, haven’t reintroduced them.
Guaranteed Rate does offer a HELOC, and unlike the typical offering, Guaranteed Rate’s HELOC has a fixed rate for the entire term of the loan. You can borrow from $25,000 to $400,000 and close in five to 10 days.
Home Equity Conversion Mortgage
Another unique offering is the home equity conversion mortgage, or HECM. It’s a reverse mortgage that lets you borrow against your equity, with no payment due as long as you live in the home as your primary residence, and you can use it to purchase a home.
With Guaranteed Rate’s HECM for Purchase program, you can finance your home purchase via a reverse mortgage. In other words, you buy the home using funds received by borrowing against it at closing.
Guaranteed Rate Mortgage Rates and Fees
As you might expect from a lender with “guaranteed rate” in its name, Guaranteed Rate does have competitive rates. As of April 23, it beat the national average rates for 30-year fixed-rate loans, 15-year fixed-rate loans, FHA loans and VA loans.
Guaranteed Rate is fully transparent about its rates — you can view recent trends and compare its rates to national averages right on the lender’s website. Fees also impact loan affordability. Although Guaranteed Rate doesn’t disclose its origination fee, it notes on its website that lenders typically charge 0.5% to 1%.
This online-first lender also offers a rate lock under its “Lock ‘N’ Roll” program. You can lock your rate for 60, 75 or 90 days. If rates drop after you’ve locked yours in, you may be able to negotiate for a lower rate.
As of April 23, these are some of the current rates you can expect:
| Loan Type | Rate | APR |
|---|---|---|
| 30-year fixed | 6.625% | 6.946% |
| 15-year fixed | 5.750% | 6.142% |
| FHA loan | 5.990% | 7.124% |
| VA loan | 5.990% | 6.603% |
| Jumbo loan | 6.375% | 6.647% |
Guaranteed Rate vs. Other Mortgage Lenders
When it comes to buying a home, you’ve got plenty of options to choose from. Here’s how Guaranteed Rate stacks up compared to a couple of similar lenders:
| Feature | Guaranteed Rate | U.S. Bank | Better |
|---|---|---|---|
| Apply Online | Yes | Sometimes | Yes |
| Average Closing Time | Undisclosed | 30 to 45 days | 32 days |
| In-Person Help | Sometimes | Yes | No — phone or email only |
| Mobile App | Yes | Yes | No |
| Loan Types | Many (including specialty loans) | Not as many specialty loans | Similar loan options |
| Clear Fees | Yes | Somewhat | Yes |
| Best For | Fully digital experience with rate transparency | Hybrid or online experience | Online experience |
Who Should Consider Guaranteed Rate Mortgage?
Guaranteed Rate is best for:
- Fully digital lending experience
- Fast (same-day) approval time
- Traditional mortgage financing and refinancing
- Specialty financing options
- Rate transparency
- Borrowers with unique situations (including self-employed, medical school graduates and real estate investors)
Guaranteed Rate may not be ideal for:
- Those seeking an in-person experience
- Buyers who want more convenient customer service options
Editorial Note: This content is not provided by any entity covered in this article. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by any entity named in this article.
