Guaranteed Rate Mortgage Review for 2022

Guaranteed Rate mortgage rates

On average, Guaranteed Rate mortgage rates tend to be a little lower than the competition. Its origination fees and total closing costs are generally affordable, too.

But remember that interest rates and lender fees look different for every borrower. You should get a custom quote from Guaranteed Rate, along with a few other lenders, to find the best deal for your situation.

Average mortgage rates at major lenders

	Guaranteed Rate	Rocket Mortgage	Wells Fargo	Freedom Mortgage
Avg 30-Yr Interest Rate, 2021¹	3.01%	3.00%	3.14%	2.66%
Median Total Loan Costs, 2021	$4,273	$4,670	$3,600	$3,880
Median Origination Fee, 2021	$1,290	$2,430	$1,330	$0

Average rate and fee data sourced from public rate and fee records required by the Home Mortgage Disclosure Act (HMDA).

Guaranteed Rate mortgage review for 2022

There’s no denying Guaranteed Rate is an exceptional lender. Indeed, few have a bad word to say about it.

Borrowers often qualify for a low rate and the company’s online technology is easy to use. There’s good telephone support, and those who live near a branch can have a face-to-face experience.

But, of course, nobody’s perfect.

If you are a borderline borrower — with an iffy credit score or high debt-to-income ratio (DTI) — you may find other lenders more sympathetic. And if you prefer a face-to-face mortgage process, Guaranteed Rate’s 400+ branches may not cut it, unless you happen to live near one of those.

However, if you’re a mainstream borrower who’s comfortable with technology, there’s much to like at Guaranteed Rate.

This Chicago-based lender is licensed in all 50 states and Washington D.C. So regardless of your proximity to a brick-and-mortar location, home buyers across the country can use Guaranteed Rate to finance the purchase of a new home.

Working with Guaranteed Rate mortgag

Guaranteed Rate’s online services come with all the bells and whistles you could want. After all, these are the people who claim to have come up with the world’s first digital mortgage, which can deliver a loan approval within minutes.

There’s also an intuitive “loan finder” tool to help you find your perfect mortgage, a mobile app, and a dashboard to upload your documents in a secure environment.

Those who are just beginning their mortgage loan process have access to online preapproval, too. Guaranteed Rate claims its PowerBid system can provide preapproval results in 15 minutes.

Once preapproved, you’ll work with a loan officer who will analyze your personal finances and determine the best loan product for you.

Guaranteed Rate mortgage customer service reviews

In J.D. Power’s Mortgage Origination Satisfaction Study, Guaranteed Rate scored 825 out of 1,000. This was below the industry average of 851.

However, Guaranteed Rate gets fewer complaints per 1,000 mortgage customers than some other major lenders. Complaints are registered with the Consumer Financial Protection Bureau (CFPB).

Customer service reviews at major lenders

	CFPB Complaints, 2021⁴	Complaints Per 1,000 Mortgages, 2021⁵	J.D. Power Satisfaction Score, 2021⁶
Guaranteed Rate	68	0.21	825/1,000
Rocket Mortgage	376	0.24	876/1,000
Wells Fargo	488	0.58	832/1,000
Freedom Mortgage	262	0.35	829/1,000

Mortgage loan products at Guaranteed Rate

Guaranteed Rate offers a comprehensive range of mortgage products. With FHA, VA, and USDA mortgages, there are plenty of opportunities to get a low- or no-down-payment loan.

In addition, Guaranteed Rate is one of the few lenders we’ve reviewed that offers interest-only mortgages. This is a unique home purchase option that has lower, interest-only payments at the start of the loan term.

Guaranteed Rate’s full list of mortgage loan options includes:

Conventional loans: A loan conforming to guidelines set by Freddie Mac and Fannie Mae. First-time home buyers can qualify with as little as 3% down payment and 620 minimum credit score. You can usually stop paying private mortgage insurance (PMI) after a few years
Jumbo loans: Borrow loan amounts that are larger than other mortgage options (usually up into the millions). But expect to make a bigger down payment and clear higher credit hurdles
FHA loan: You can put down as little as 3.5% of the home purchase price. But you’ll have to pay mortgage insurance premiums (MIP) each month until you sell or refinance. This is a popular loan type for first-time home buyers
VA loan: Great for veterans, active-duty service members, and others who are eligible. Zero down payment, easier credit, competitive rates, and no private mortgage insurance
USDA loan: Available for low- to moderate-income borrowers in qualifying rural and suburban areas. USDA loans require 0% down and have competitive rates
30-year fixed-rate mortgage (FRM): America’s most popular home loan and often ideal for those planning on staying put for at least five years or so. Fixed-rate loans keep the same mortgage interest rate for the life of the loan
15-year FRM: You’ll pay much less in total than with a 30-year loan and will be mortgage-free sooner. But your monthly mortgage payments will be higher
Adjustable-rate mortgage (ARM): Typically start with a lower interest rate than FRMs, which are fixed for 3-10 years. After that, your rate can go up or down with the markets
Home renovation loans: Finance a home remodel or big repair project with a home improvement loan
Interest-only mortgage: This is a good loan choice in select circumstances. You’re only paying the interest, so you’ll owe the same at the end as at the beginning

With such a wide selection, many customers will be able to find the mortgage loan they’re looking for at Guaranteed Rate.

Refinancing with Guaranteed Rate

Homeowners who are looking for a mortgage refinance loan can choose between a rate-and-term refinance or cash-out refinancing.

Rate-and-term refinance: Exchange your original mortgage with a new one that offers loan terms that are more favorable
Cash-out refinance: Access your home equity by replacing your current mortgage with a new, larger loan amount, and then receiving the difference as a lump sum of cash

The lender’s refinance rates are generally similar to its home purchase rates. But your refi rate will vary depending on the type of loan and your personal situation.

Home equity lines of credit with Guaranteed Rate

While it does not provide home equity loans, Guaranteed Rate offers home equity lines of credit (HELOCs) to homeowners who want to tap their equity but are not interested in cash-out refinancing.

A HELOC is a revolving source of funds, similar to a credit card, that you can borrow as you choose. Many use the cash to consolidate debt or to make home improvements.

Where can you get a mortgage with Guaranteed Rate?

Guaranteed Rate NMLS ID: 2611

Probably most borrowers who engage with Guaranteed Rate will do so online. The lender is licensed across all 50 states and Washington D.C. So anyone can start their mortgage application right at home.

And why wouldn’t you? The website offers exceptional functionality and, if you get stuck, there’s a knowledgeable loan officer at the end of a phone line.

Of course, some borrowers prefer a face-to-face relationship when making big financial decisions. To serve customers in person, Guaranteed Rate has over 400 branch locations peppered throughout 46 states.

The four states without a Guaranteed Rate branch are:

Mississippi
Vermont
West Virginia
Wyoming

Some states, like California, have tons of branches while others, like Nebraska, have just one.

But still, Guaranteed Rate’s branch network is better-spread than many other lenders and large banks. It’s worth checking where your nearest office is.

Is Guaranteed Rate the best mortgage lender for you?

Bottom line — there’s little not to like about Guaranteed Rate. If it offers the loan type you need and competitive underwriting fees, then it’s worth getting a mortgage rate quote to see what Guaranteed Rate could offer you.

Just be sure to get quotes from a few other companies, too. And compare them line by line. Remember, things like discount points can make a loan look more or less attractive at face value than it really is.

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