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Business Insider's personal finance team reviewed Rate and found it to be one of the best mortgage lenders for first-time homebuyers.
Rate Mortgage (previously known as Guaranteed Rate) is a strong mortgage lender. It offers a wide variety of mortgages, including more niche types like interest-only mortgages and non-QM loans. Borrowers eligible for the lender's OneDown program could also get up to $3,500 in down payment and closing cost assistance, in the form of a grant and a lender credit.
620
3%
Conforming, jumbo, FHA, VA, renovation, interest-only, non-QM, physician, reverse, HELOC
- See customized rates online
- Ranks high in customer satisfaction
- Offers up to $3,500 in down payment and closing cost assistance
- Has physical branches in 48 states
- No USDA, home equity, or construction loans
- No physical branches in Delaware and Vermont
Rate is a very strong mortgage lender, offering a wide variety of mortgages, including more niche types of mortgages like interest-only mortgages and non-QM loans.
- Available in all 50 US states and Washington, DC
- Branches in every state except Delaware and Vermont
- Minimum credit score and down payment displayed are for conforming mortgages
Rate Basics
Nationwide Lender With Physical Locations Throughout the U.S.
Rate is an online lender that offers mortgages in all 50 U.S. states and Washington, D.C. It also has in-person branches in 47 states; it has no branches in Delaware or Vermont.
Rate Loan Options
You can get the following types of home loans from Rate:
- Conforming loans
- Jumbo loans
- FHA loans
- VA loans
- Renovation loans
- Interest-only mortgages
- Non-QM loans, which give those with unconventional financial situations or rocky credit histories the ability to qualify for a mortgage
- Physician mortgages
- Reverse mortgages
- HELOCs
Rate is a good choice for borrowers who don't have a credit score. You can use non-traditional credit, like your rent or utility payment history, to qualify for a conventional or government-backed loan with this lender. If you do have a credit score, it'll need to be at least 620 to qualify for a conforming loan.
Put Just 1% Down With Rate's OneDown Program
Rate has a program called OneDown that gives eligible borrowers a down payment grant. This grant enables borrowers to put just 1% toward their home purchase using their own funds. Rate will provide the other 2% in the form of a grant. You'll also get a $1,000 closing cost credit from the lender.
However, the maximum grant you can receive is $2,000, or $2,500 if you earn 50% or less of your area median income. So you'll likely need to bring more than 1% to the table to make the minimum 3% down payment. Still, this grant can make a significant dent in the overall amount you'll need to close on a home, and it doesn't need to be repaid.
To be eligible for this program, your income can't be above 80% of your area median income. At least 1% of your down payment must come from your own funds, but you can use other sources (such as a gift from family or friends) to cover the rest of your down payment.
Rate Mortgage Interest Rates and Fees
In our review of Home Mortgage Disclosure Act data, we found that Rate's interest rates are around average.
On its mortgage rates page, Rate will let you explore mortgage rates and monthly payments based on your purchase price, down payment, ZIP code, and other factors.
In 2023, the average borrower who got a conventional mortgage from Rate paid $3,428 in origination charges, according to HMDA data. This is around average compared to other lenders.
Rate Overall Lender Rating
Loan Types: 5 out of 5
Rate offers many different types of mortgages, and most borrowers should be able to find the loan they're looking for with this lender. It has conventional and government-backed options as well as less common types of mortgages. You can get non-QM loans from this lender, including mortgages for non-US citizens and bank statement loans.
Affordability: 4.5 out of 5
This lender has down payment assistance and a variety of affordable mortgages (including FHA loans and low-down-payment conventional options).
Customer Satisfaction: 2.98 out of 5
In J.D. Power's 2024 US Mortgage Origination Satisfaction Study, Rate ranked below the industry average in customer satisfaction. However, on its Zillow lender page, it has a 4.96 out of 5-star rating, based on over 21,000 customer reviews.
Trustworthiness: 5 out of 5
The Better Business Bureau gives Rate an A+ rating. A strong BBB score indicates that a company responds effectively to customer complaints, is transparent about business practices, and advertises honestly. The lender also doesn't have any recent public scandals.
Rate Pros and Cons
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Down Payment and Closing Cost Assistance With OneDown
Rate's OneDown program offers up to $2,500 in down payment assistance, which comes in the form of a grant, plus a $1,000 closing cost credit. Saving to buy a home can take a while, but this program significantly reduces the amount you'll need to close on a home.
Doesn't Have Branches in Every State
If you want to work with your mortgage professional in person, you might like the fact that Rate has many physical branches. But it doesn't have branches in Delaware or Vermont, and the number of branches in a given state varies. You can check online to see if there's a location near you.
What Borrowers Are Saying About Rate
Business Insider looked at positive and negative customer reviews, online forums, BBB complaints, and other sources to understand what borrowers think about Rate.
Simple Process With Knowledgeable and Communicative Mortgage Pros
We saw a lot of reviews and comments from previous borrowers praising the lender's convenient mortgage process and its helpful loan officers. Many borrowers said that the professionals they worked with were easy to get ahold of to answer questions and regularly reached out with updates on their loans.
How Rate Compares
Rate vs. Rocket Mortgage
Rocket Mortgage is one of the best mortgage refinance lenders out there, and it's a good choice if customer service is important to you. The lender ranked high J.D. Power's 2024 mortgage origination satisfaction study.
Rocket has a similar program to Rate's OneDown, called the ONE+ mortgage, which allows a down payment of just 1%. Rocket's maximum grant is $7,000, which is higher than Rate's.
But Rate has a wider range of mortgage options to choose from.
Rate vs. Fairway Independent Mortgage Corporation
Fairway Independent Mortgage is an affordable mortgage lender. It's another good option if you're looking for a smooth customer service experience.
Rate and Fairway Independent have similar mortgage offerings, but Fairway ranks higher in customer satisfaction. You might consider applying with both to see which one can offer you the better overall deal.
Fairway Independent Mortgage Corporation Review
Rate Mortgage FAQs
Yes, Rate is a legitimate mortgage lender that's been in business for over two decades.
To get a conforming loan from Rate, you'll need at least a 620 credit score.
Rate is a direct lender. This means it originates its own loans, as opposed to a mortgage broker, which connects borrowers with multiple lenders to find the best fit.
Rate's mortgage rates are around average compared to other lenders, according to the latest HMDA data.
You can get preapproved (sometimes referred to as prequalified) with Rate using its quick online preapproval application, or in person at a Rate branch.
Rate is one of the largest mortgage lenders in the U.S., so if you're considering this lender, you may also want to get some quotes from some smaller, local lenders, to see if they can offer you a better rate.
Why You Should Trust Us: How We Reviewed Rate
To review Rate, we used our methodology for reviewing mortgage lenders.
We look at four factors — loan types, affordability, customer satisfaction, and trustworthiness — and give each a rating between 1 and 5, then average these individual ratings for the overall lender rating. Lenders get higher ratings if they offer a high number of loan types with affordable features, have positive customer reviews, and don't have any recent public controversies.
