Bankrate Reviews

Bankrate is a good place to start your home lender search. Although you won’t get a specific rate from Bankrate, you’ll be able to see varying offers from different lenders.

Before choosing a lender, you should know the difference between an interest rate and annual percentage rate (APR) since it affects how much you pay for your loan. Lenders typically advertise both. The interest rate represents the cost of borrowing money from that lender. The APR is the actual amount you will repay the lender after the fees are added in. When comparing rates, look at the APR rather than the interest rate for a better idea of the total cost of borrowing.

The first step to any home loan process is to shop rates. Bankrate makes that easy to do. Initially, you can answer a few quick questions about your home needs without any personal information to get matched to lender recommendations. From there, you should research and compare the companies through unbiased reviews before requesting quotes.

Bankrate can connect you with lenders that offer common home loan types. The most common home loan types include:

• Conventional loans: This is a good choice for borrowers with good credit. Homebuyers can put as little as 3% down, depending on the lender, but a down payment of less than 20% will result in private mortgage insurance (PMI).
• Jumbo loans: For those with excellent credit that need more financing than a conventional loan can offer, a jumbo loan is often the right option.
• Government-backed loans: FHA, VA and USDA loans are government-backed loans designed for borrowers such as first-time homebuyers, military members and veterans and those wishing to purchase a home in eligible rural areas.

Refinancing

Bankrate provides a chart that allows you to compare the estimated upfront and eight-year costs with different refinance lenders. These are good figures to help you determine if refinancing to a slightly lower interest rate will save you money.

HELOC and home equity loans

Bankrate does offer information on home equity line of credit (HELOC) and home equity loan providers. As with purchase and refinance mortgages, you start by answering a few questions about your needs, and Bankrate shows you rates from various lenders.

Bankrate is free to use to request quotes. You only need to put in basic home loan information, such as where you are in your home search process, your estimated credit score and desired loan amount to get a personalized list of recommendations.

Before you request a mortgage quote, it is ideal to know how much house you can afford. Aiming for a home purchase amount on the lower side of your budget range will keep your monthly mortgage payment manageable. Plus, having a lower loan-to-value ratio can help you lock in a better APR.

National mortgage requirements by type

Bankrate is free to use, but each lender suggested by Bankrate will have its own list of loan fees. As you compare mortgage rates, it is also important to compare closing costs and other fees. After you apply, a lender must provide a Loan Estimate, a form that breaks down estimated costs of a mortgage loan.