Published On : November 15, 2021 by: Miti Sharma/Category(s) : Banking & Finance
Guaranteed Rate is a nationwide mortgage provider that focuses on financing purchase loans for well-qualified consumers. Guaranteed Rate’s low-interest-rate offerings and upfront charge savings make it a competitive alternative for funding your home purchase if you have a solid credit score and income level. The company’s comprehensive website also provides a more in-depth user experience than most other direct lenders.
Guaranteed Rate mortgage Loan In A Nutshell
| Conventional loans | Yes |
| FHA loans | Yes |
| VA loans | Yes |
| Refinancing | Yes |
| Jumbo loan | Yes |
| Adjustable loan | Yes |
| Fixed rates | Yes- 30 years and 15 years |
It has over 400 physical locations, focuses on employing technology to simplify the homebuying process, and claims to be the first lender to offer a fully online mortgage procedure. The organization now employs over 9,000 people and has an annual loan volume of more than $70 billion.
Pros
Cons
Guaranteed Rate promotes their digital mortgage procedure, which allows clients to fill out a mortgage application, upload and sign papers, and receive approval in under an hour. This, according to the business, allows it to settle loans two days faster than other lenders.
Guaranteed Rate is authorized to lend in all 50 states as well as the District of Columbia. If you prefer in-person service, the lender has over 400 locations in 46 states, so there’s likely one near you.
You might not need to go to an attorney or title business to finalize your loan if you use Guaranteed Rate. The lender’s FlashClose service allows for at-home closings. Most of your closing paperwork may be reviewed ahead of time, leaving just the notarization procedure to be completed in person or through a webcam in some jurisdictions.
Whilst Guaranteed Rate deserves credit for publishing current mortgage rates on its website, depending on the loan, you may need to go elsewhere. Only a few alternatives have rates shown on the lender’s main rates page, with the rest scattered around the site. This might make weighing all of your alternatives more challenging.
Home equity loans and home equity lines of credit are not available via Guaranteed Rates. Customers who want to take advantage of the equity in their property will have to seek elsewhere.
You may be upset if Guaranteed Rate’s top services aren’t accessible in your region, depending on where you reside. The company’s entirely remote closure option isn’t available in all states, and four states don’t have any physical locations.
Who May Benefit From A Guaranteed Rate Loan?
Guaranteed Rate is a dependable mortgage provider with a diverse selection of products. Guaranteed Rate is an excellent lender to look into if you’re looking for a traditional 30-year fixed-rate mortgage, as the firm makes it simple to obtain those daily prices. Guaranteed Rate is also a wonderful alternative for customers who like to close their loan at their house. If you’re looking for adjustable-rate mortgages, a Guaranteed Rate is a good option.
What Is A Guaranteed Rate?
Guaranteed Rate offers preapproval with automated underwriting to borrowers. You’ll need to supply information about your income, assets, and credit in the digital mortgage application, which should take approximately 15 minutes to complete. With a service called FlashClose, you may e-sign most of your closing paperwork, reducing closing times to as little as 30 minutes.
What Are The Pluses And Minuses Of Guaranteed Rate Mortgages?
When we evaluated Guaranteed Rate’s mortgage offers, we discovered that both the user experience and the data were far superior to what we’ve seen with the average direct lender. Based on a $198,000 purchase price and a 10% down payment, we compared the company’s 30-year mortgage to those offered by major banks.
Estimates Of 30-Year Fixed-Rate Mortgages At Major Banks
| Guaranteed rate | Chase | Bank of America | Wells Fargo | |
| Interest Rate | 3.88% | 3.88% | 3.675% | 3.88% |
| APR | 4.32% | 4.16% | 4.11% | 4.15% |
| Cost of Points | -$300 | $223 | $1,000 | $0 |
| Monthly P+I | $838 | $838 | $825 | $838 |
| Mortgage Insurance | $45 | $65 | $66 | $61 |
Obtaining several figures at the same time helped us to gain a sense of Guaranteed Rate’s competitive edge, even though mortgage rates are continually changing. While the rate isn’t much better than major names like Chase, Guaranteed Rate will give you lender credit in cases when others would charge you for discount points. These points and credits are applied to your closing expenses, making Guaranteed Rate the most cost-effective choice if you want to save money on your mortgage fees upfront.
If you’re considering buying a mortgage with a down payment of less than 20%, you should know that Guaranteed Rate also supplied the most affordable estimate for mortgage insurance. Mortgage insurance protects the lender from the danger of default, although, in most circumstances, the borrowers must fund the expense themselves. Although borrowers-paid mortgage insurance can be canceled in the future, paying smaller premiums from the start can save you hundreds of dollars in the long run.
Also Read: Caliber Home Loans
What Are The Terms, Fees, and Conditions Of The Guaranteed Rate?
“Mortgage costs vary based on a number of factors such as the purchase price of your house, the product you choose, and where you live,” explains Michael Gatti, Guaranteed Rate senior vice president of secondary marketing. “At Guaranteed Rate, they are completely transparent about the rates and prefer to charge a flat fee rather than charging for each individual item.”
Without giving any contact information, you may use Guaranteed Rate’s affordable mortgage calculator to evaluate prospective loan alternatives, rates, and fees. An origination charge may be included in your Guaranteed Rate closing fees.
You are now ready to apply at a Guaranteed rate mortgage as you have enough information, to begin with.
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