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Guaranteed Rate Review: Mortgage and Mortgage Refinancing

Guaranteed Rate has a fully online mortgage process and offers competitive rates on an impressive list of loan options.

Daria Uhlig Daria Uhlig Edited by Chris Jennings

Our goal is to give you the tools and confidence you need to improve your finances. Although we receive compensation from our partner lenders, whom we will always identify, all opinions are our own. Credible Operations, Inc. NMLS # 1681276, is referred to here as "Credible."

Guaranteed Rate offers a wide range of secure digital tools that let customers work through the mortgage loan process entirely online. The lender is licensed in all 50 states and the District of Columbia, and it has over 350 branch offices where you can meet face-to-face with your loan officer.

Guaranteed Rate mortgage reviews are mostly positive on the review sites we checked, but recent reviews on the Better Business Bureau website indicate that some customers have had frustrating experiences. Find out where Guaranteed Rate shines and whether or not it has the right mortgage products for you.

Guaranteed Rate is not a partner or affiliate of Credible Operations, Inc.

In this review:

Guaranteed Rate mortgage purchase review

Best for:

  • Buyers seeking an exclusively online mortgage process
  • Buyers relocating to another state
  • Buyers looking for a government-backed loan
  • First-time homebuyers

Guaranteed Rate’s online mortgage process is a major benefit for buyers — especially those making an out-of-state purchase — because it eliminates the need to meet with a loan officer in person.

Guaranteed Rate’s technology is what makes this possible:

  • GRaffordable Loan Finder: Get customized home loan recommendations and mortgage rate quotes, plus annual percentage rate, estimated monthly loan payment, tax and insurance estimates, lender fees/credits, and lender costs for each loan.
  • Digital Mortgage: Submit your initial information, then view your loan estimate and print out your mortgage pre-approval letter. When you’re ready, apply for your loan, submit documents and track tasks from your computer or mobile device.
  • Transfersafe: Upload documents securely.
  • FlashClose: Sign your closing documents remotely, then have them notarized during a brief in-person appointment or securely over webcam.

Mortgage options at Guaranteed Rate include conventional loans as well as loans backed by the Federal Housing Authority, the U.S. Department of Agriculture, and the U.S. Department of Veterans Affairs. You can also take out a jumbo loan or an interest-only loan.

Credible makes finding loans even easier. With Credible, you can compare rates from our partner lenders in just three minutes — all without leaving our platform. Get started now.

Keep Reading: How to Find the Best Mortgage Lender

Conventional loan

Guaranteed Rate’s conventional offerings include fixed- and adjustable-rate loans. Homebuyers who put at least 20% down don’t have to pay private mortgage insurance on their loans. However, you can qualify for a conventional loan with as little as 3% down.

FHA loan

FHA-insured loans are a popular option for first-time homebuyers. You’ll pay an upfront mortgage insurance premium at closing, and annual mortgage insurance premiums after that. But buyers who put 10% down may discontinue their mortgage insurance after 11 years.

USDA loan

USDA-guaranteed loans help lower-income homebuyers purchase a home in rural areas. No down payment is needed, but borrowers do pay upfront and annual guarantee fees.

VA loan

Veterans and active-duty service members and their qualified family members can use the VA loan benefit to make a home purchase with no down payment. These loans are guaranteed by the VA, so borrowers pay an upfront funding fee plus an annual fee.

Jumbo loan

A jumbo loan lets you borrow more than a conventional, FHA or VA loan allows. These loans can be a good option if you need to borrow more than $484,350 — or $726,525 in designated high-cost areas.

Learn More: How Much Does It Cost to Buy a Home?

Interest-only loan

Interest-only loan payments are low in the first several years because, as the name implies, you only have to pay interest on the amount borrowed. You pay down the principal later, either monthly or as a lump balloon payment at the end of the term.

Good to know: With this type of loan, your monthly mortgage payment will rise after the interest-only period to help cover the cost of the principal. You’ll also pay more over the life of a loan than you would with a traditional mortgage.

Renovation loans

Guaranteed Rate offers two loan programs to homebuyers purchasing a fixer-upper that needs repairs:

  • FHA 203(k) streamline rehabilitation loan: Borrow between $5,000 and up to $35,000 in additional funds.
  • Fannie Mae HomeStyle renovation mortgage: Borrow up to 75% of the after-improvements appraised value, or 50% for manufactured homes

Learn More: Renovation Mortgage: One Loan to Buy and Repair a Home

Here’s a more detailed look at Guaranteed Rate’s purchase loans:

Mortgage
purchase programs		Conventional, FHA, USDA, VA, jumbo, interest-only, FHA 203(k) renovation, Fannie Mae HomeStyle renovation
Fixed-rate
loan terms		15, 20, 30 years
Variable-rate
loan terms		5/1, 7/1, 10/1
Rates and feesAPRs and fees vary by loan, borrower’s qualifications, discount points and lender credits.
  • VA funding fee: 1.40% with 10% down payment, 1.65% with 5% down payment, 2.30% with $0 down for first-time benefit users

  • FHA upfront mortgage insurance premium: 1.75%

  • USDA guarantee fee: 3.5% max. upfront fee; 0.5% max. annual fee
Min. credit score620
Min. down payment
  • Conventional: 3%
  • FHA: 3.5% to 10%, depending on your credit score
  • USDA: $0
  • VA: $0
  • HomeStyle: 3%
Guaranteed Rate isn't our partner, but you can use Credible to compare prequalified rates from other mortgage lenders all at once.

Find Rates Now

Guaranteed Rate offers additional, brokered loan options through partner lenders. Contact a branch office in your state for more information.

Check mortgage purchase rates:

Guaranteed Rate mortgage refinancing review

Best for:

  • Homeowners who want to refinance and cash out some equity
  • Homeowners who want to combine their refi loan with a renovation loan
  • Homeowners who prefer a home-equity loan or line of credit

Homeowners applying for a mortgage refinance can select any of the loans Guaranteed Rate offers for home purchase, including the FHA 203(k) and Fannie Mae HomeStyle renovation loans.

All of Guaranteed Rate’s refinance products result in a new first mortgage. But, refinancing might not be the best choice if you’re simply looking to draw some equity from your home. In that case, consider having Guaranteed Rate broker a home equity loan or line of credit for you through a partner lender.

Because of Guaranteed Rate’s minimum credit score requirement, mortgage refinancing with bad credit might not be possible. You can still qualify to borrow as long as your credit score is above 620, but your refinance rates will likely be higher.

Here’s a closer look at Guaranteed Rate’s refinance loans:

Mortgage
refinance programs		Conventional, cash out, FHA (rate/term, streamline, and cash out), VA (streamline and cash out), USDA (standard and streamline), jumbo, interest-only, FHA 203(k) renovation, Fannie Mae HomeStyle renovation
Fixed-rate
loan terms		15, 20, 30 years
Variable-rate
loan terms		5/1, 7/1, 10/1
Rates and feesAPRs and fees vary by loan, borrower’s qualifications, discount points and lender credits.
  • VA funding fee: 0.5% to 2.30% for first use of benefit, depending on loan

  • FHA upfront mortgage insurance premium: 1.75% upfront fee1; annual fee varies according to loan-to-value ratio

  • USDA guarantee fee: 3.5% max. upfront fee; 0.5% max. annual fee
Min. credit score620
Guaranteed Rate isn't our partner, but you can use Credible to compare prequalified rates from other mortgage lenders all at once.

Find My Refi Rate
1The upfront fee is 0.01% for Streamline Refinance and Simple Refinance loans used to refinance an FHA mortgage that was endorsed on or before May 31, 2009.

Check mortgage refinance rates:

How Guaranteed Rate can improve

Guaranteed Rate reviews are generally very positive, especially when it comes to quick closings. But a recent spate of one- and two-star customer ratings makes it clear that there’s room for improvement.

  • Better communication: Most of the recent negative reviews complain about poor communication with loan officers, which suggests that some offices might be understaffed.
  • Website organization: The site’s loan finder — which allows you to view rates anonymously — should be in a more prominent location. With the site’s current layout, it’s too easy to land on an application page that asks you to share contact information before you can see rate quotes.
  • More detail about all loan products: The website has highly detailed information about its loan products, but the site doesn’t mention that USDA loans are available.

Learn More: How to Refinance Your Mortgage With Bad Credit

Compare multiple lenders first

Take some time to compare rates from several lenders before you commit to a loan from Guaranteed Rate.

While Credible is not partnered with Guaranteed Rate, to make your search easier, we provide personalized mortgage rate comparisons from several of our partner lenders. Your rate quote takes just three minutes to prepare, and you can apply for your loan and submit your documents right on our platform.

About the author
Daria Uhlig
Daria Uhlig

Daria Uhlig is a contributor to Credible who covers mortgage and real estate. Her work has appeared in publications like The Motley Fool, USA Today, MSN Money, CNBC, and Yahoo! Finance.

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