Guaranteed Rate Mortgage Reviews

From 2019 to 2021, Guaranteed Rate generally offered a lower average rate for home purchase loans than the national average.

Just keep in mind that interest rates depend on a number of economic and personal factors, including the borrower’s credit history and debt-to-income (DTI) ratio. Typically, borrowers with higher credit scores and lower debt-to-income ratios secure better rates.

Guaranteed Rate Mortgage average home purchase rate vs. national average

Guaranteed Rate offers both fixed-rate and adjustable-rate mortgages (ARMs). Fixed interest rates won’t change over the course of the loan term, so some borrowers prefer the predictable payments these mortgages offer. However, an ARM usually offers a low introductory rate that’s fixed for a period of time. Later, the rate will reset occasionally based on market conditions.

Guaranteed Rate offers ARMs with introductory periods of five, seven or 10 years. If you have a five-year ARM, your rate will reset after five years and change again either biannually or annually, depending on your terms.

An ARM could be a good option if you expect your financial situation to improve during the introductory period. Some borrowers use ARMs as a way to obtain a lower interest rate when their credit isn't great but they expect to improve it. Once their credit score improves, they refinance the loan and lock in a better fixed rate.

To get a mortgage with Guaranteed Rate, begin the preapproval process by visiting the company’s website. You’ll then need to provide information about your financial situation, like your estimated credit score and the state where you plan on purchasing a home. The application also asks for more detailed information, like your annual income and your bank account balances. Guaranteed Rate uses this information to determine your loan eligibility.

Be prepared to upload documentation for the loan application, including W-2s, bank statements and payroll stubs. Once you’ve completed your application, you should receive a preapproval decision in about 15 minutes.

Noel, a ConsumerAffairs reviewer from Illinois, had this to say about their experience with Guaranteed Rate:

“I got the lowest rate possible and shopped around to be sure. Jay waived the lender fee and I pretty much paid nothing to refi. My prior mortgage was paid off within three days of closing and I got excess money paid back to me via direct deposit. ...This was the cleanest and most easy experience.”

Guaranteed Rate Mortgage application features

Like most mortgage lenders, Guaranteed Rate offers an assortment of loan options, including conventional loans, jumbo loans, FHA loans and VA loans. Its fixed-rate loans come in 15-year or 30-year loan terms, while its ARMs have five-, seven- or 10-year fixed-rate periods.

The company also offers interest-only mortgages for borrowers who may need a more flexible loan option. With this type of mortgage, you delay repaying the principal debt for a short period of time (for example, five years) while making lower, interest-only payments monthly.

In addition to mortgage products, the company also offers HELOCs, home renovation loans and personal loans.

In 2021, Guaranteed Rate received 116,164 home purchase loan applications. Most of these applications made it through to closing (about 72%), and only about 4% were denied.

Loan applications for home purchases only by year

Refinancing

In 2021, a little over half of the loans Guaranteed Rate originated were for refinancing (roughly 54% with rate-and-term and cash-out refinances combined). That means less than half of the loans it originated were for home purchases (about 46%).

This isn’t unique to Guaranteed Rate, though. A large number of borrowers chose to refinance in 2020 and 2021 to take advantage of the low interest rates at the time. Refinancing to a lower rate reduces your monthly payment and helps you save on interest over the loan term. Many borrowers also choose to refinance if they want to turn some of their home equity into cash to fund a project or pay off another debt.

Home purchase vs. refinance loans by year

HELOC and home equity loans

Guaranteed Rate offers HELOCs to borrowers who need to draw from the equity in their homes over time, but it doesn’t offer home equity loans. With a HELOC from Guaranteed Rate, you can borrow between $20,000 and $400,000, depending on your available equity and the loan-to-value (LTV) ratio. Draw periods range from two to five years.

Unlike many HELOCs, Guaranteed Rate’s HELOC has a fixed interest rate, which means your monthly payments won’t fluctuate based on market conditions. You can also receive funding in as little as five to 10 days.

Guaranteed Rate doesn’t publish all of its borrower requirements, but the ones it does post generally line up with the industry norms for those loan types. The company says that it requires a 620 credit score for mortgage approval, but this limit appears to be 580 for VA loans. Many of the company's educational materials also refer to lower credit score minimums for FHA loans — but not in the context of its own lending practices.

For context, we’ve included a table of general mortgage qualification guidelines below.

National mortgage requirements by type

Guaranteed Rate does a better job disclosing its requirements for HELOCs, which include having a:

• Minimum credit score of 640
• Maximum DTI ratio of 50%
• Maximum LTV of 90%
• Single-family home, townhouse or condominium

Guaranteed Rate does not publish its lender fees. However, these fees are a portion of your total closing costs, which generally equal 2% to 5% of your loan amount.

In addition to lender fees, closing costs typically include title fees (like title search fees and title insurance), homeowners insurance premiums, appraisal fees and inspection fees.

To help you prepare to pay closing costs, you’ll receive a document called a Loan Estimate after you apply for a loan. This will give you a better idea of the fees associated with your new loan before you commit any further.