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
How high will mortgage interest rates be in 2024? ›
Mortgage rate predictions 2024
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.
Will we ever see the 4% mortgage again? The 4% mortgage is unlikely to return any time soon, real estate economists say. Realtor.com expects rates to ease by year's end – to 6.5%. “People are just going to have to get used to, if not 7% rates, then 6% rates,” said Daryl Fairweather, chief economist of Redfin.
Will my mortgage go up in 2024? ›Mortgage rates can vary greatly depending on the type of loan, the lender, and the current market conditions. You'll likely see increases in mortgage payments in 2024 – whether you're refinancing to a new deal or defaulting to your bank's standard variable rate (SVR) - because interest rates have gone up.
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.
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 rate forecast for the next 5 years? ›Projected Interest Rates In The Next Five Years
ING's interest rate predictions indicate 2024 rates starting at 4%, with subsequent cuts to 3.75% in the second quarter. Then, 3.5% in the third, and 3.25% in the final quarter of 2024. In 2025, ING predicts a further decline to 3%.
Mortgage rates could fall but not below 6%
As a result, he says most forecasts expect mortgage rates to remain above 6% into late 2025. "Two forecasts worth keeping an eye on are from the Mortgage Bankers Association and Fannie Mae," says Cook.
Our forecast that Bank Rate will be cut faster than most expect from 5.00% now to 3.00% by the end of 2025 explains why we think the average mortgage rate will fall to a little below 4.0% by the end of next year.
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.
Is it better to wait until 2024 to buy a house? ›Key Takeaways
Interest rates should continue to decrease in 2024. A housing market crash is not on the horizon. Housing inventory will likely still be low in 2024. If you're financially ready to buy now, don't wait.
Will there be a housing recession in 2024? ›
Most experts do not expect a housing market crash in 2024 since many homeowners have built up significant home equity. The issue is primarily an affordability crisis. High interest rates and inflated home values have made purchasing a home challenging for first-time homebuyers.
What is the average mortgage payment in 2024? ›| 30-year fixed-rate | 6.53% | (-0.05) |
|---|---|---|
| 15-year fixed-rate | 5.96% | (-0.05) |
| 30-year fixed-rate jumbo | 6.72% | (-0.04) |
| 5/1 ARM | 6.13% | (-0.10) |
| 10-year fixed-rate | 5.91% | (-0.03) |
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.
Mortgage rates have been elevated for most of 2024, but they've been trending down in recent months. As inflation comes down, mortgage rates should fall further. Most major forecasts expect rates to go down throughout the rest of this year and in 2025.
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.
What will mortgage interest 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 in 2024 for cars? ›Auto loan rates for new and used vehicle purchases fell in the first quarter of 2024 to 6.73% and 11.91%, respectively, down slightly from the 15-year highs we saw at the end of 2023, according to Experian.
What's a good mortgage interest rate? ›As of Aug. 23, 2024, the average 30-year fixed mortgage rate is 6.36%, 20-year fixed mortgage rate is 6.08%, 15-year fixed mortgage rate is 5.47%, and 10-year fixed mortgage rate is 5.41%. Average rates for other loan types include 5.81% for an FHA 30-year fixed mortgage and 6.64% for a jumbo 30-year fixed mortgage.
What is the forecast for Euribor in 2024? ›EURIBOR forecast for October 2024. The forecast for the beginning of October 3.165%. Maximum rate 3.179%, while minimum 2.819%. Average interest rate for the month 3.041%.
