Guaranteed Rate: 2024 Home Equity Review
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At a glance
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Loan amount
$25,000 to $400,000 (Minimum of $25,001 in Alaska)
Min. credit score required
620
Repayment terms
Two-year to five-year draw period, up to 30-year repayment period
Funds available in
5-10 days
Benefits
- You can apply for a HELOC with Guaranteed Rate online and link to your bank accounts to expedite the process.
- With a remote closing (if permitted in your state), you could receive your HELOC funds in as little as five days.
Drawbacks
- Guaranteed Rate’s HELOC is a fixed-rate product, so if prevailing market rates decline, you won’t see a corresponding decrease in your monthly payments.
- The lender’s HELOC draw period ranges from two years to five years. The draw period for a variable-rate HELOC is typically 10 years.
Home equity loan products offered
Guaranteed Rate offers lines of credit; it doesn’t offer home equity loans. Its HELOC is a fixed-rate product, which is different from the variable-rate HELOCs many other lenders offer. Rather than accessing funds from a line of credit and paying only interest (at a variable rate) over a 10-year draw period, you’ll be given a lump sum at a fixed rate, with the option to make additional draws during a two- to five-year period. The fixed rate for any additional draw is set on the date you make it, and might be higher than the fixed rate for the initial draw. You’ll be responsible for repaying both interest and principal upon receipt of the lump sum, in a repayment period of up to 30 years.
Types of fees charged
Guaranteed Rate charges a 1.99 percent origination fee for a HELOC. This is deducted from the line of credit, however; you don’t need to bring any money to closing.
How to qualify for a HELOC with Guaranteed Rate
To qualify for a HELOC from Guaranteed Rate, you’ll need a minimum credit score of 620, a combined loan-to-value (CLTV) ratio of no more than 85 percent and a debt-to-income (DTI) ratio of no more than 50 percent. The product is only available for single-family homes, condos and townhomes. To get the most competitive rate, you’ll also need to sign up for automatic payments and pay an origination fee.
How to apply with Guaranteed Rate
You can apply for Guaranteed Rate’s HELOC through the lender’s digital application. Be prepared to verify your identity and provide information about your annual income and financial life. You can also pose questions to the lender’s virtual assistant or call 866-934-7283 or email customercare@rate.com. The lender’s business hours are Monday through Friday, 8:30 a.m. to 5:30 p.m. CT.
How Bankrate scored Guaranteed Rate
| Affordability | 4.8/10 |
| Availability | 8.2/10 |
| Borrower experience | 6.9/10 |
Guaranteed Rate customer ratings and reviews
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