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Guaranteed Rate: 2022 Home Equity Review

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At a glance

4.6
Rating: 4.6 stars out of 5
Bankrate Score
  • Availability
    Rating: 4.5 stars out of 5
  • Affordability
    Rating: 4.6 stars out of 5
  • Customer Experience
    Rating: 4.5 stars out of 5

About Guaranteed Rate

  • Moneybag

    Loan amount

    $20,000 to $400,000 (Minimum of $25,001 in Alaska)

  • Credit Good

    Min. credit score

    620

  • Rates

    APR from

    Not specified

  • Funds available in

    5 minutes to 10 minutes

Guaranteed Rate features

Here's a breakdown of some of the benefits and drawbacks of Guaranteed Rate home equity loans.

PROS

  • Checkmark

    Efficient digital application

  • Checkmark

    Quick access to cash

  • Checkmark

    No upfront fees

CONS

  • Close X

    Can’t take advantage of lower rates

  • Close X

    Shorter draw period

  • Close X

    Lower loan amount cap

Established in 2000 and headquartered in Chicago, Guaranteed Rate is one of the most well-known mortgage lenders in the U.S., with more than 850 branches. In 2022, the lender rolled out a fixed-rate home equity line of credit (HELOC) complementing its array of mortgage options.

Guaranteed Rate snapshot

Home equity loan types Home equity line of credit (HELOC)
Loan amounts $20,000 to $400,000 (Minimum of $25,001 in Alaska)
Credit score minimum 620
Repayment terms Two-year to five-year draw period, up to 30-year repayment period
Average time to approval 5 minutes to 10 minutes

Benefits

  • Efficient digital application: You can apply for a HELOC with Guaranteed Rate online and link to your bank accounts to expedite the process.
  • Quick access to cash: With a remote closing (if permitted in your state), you could receive your HELOC funds in as little as five days.
  • No upfront fees: You don’t need to bring any money to closing.

Drawbacks

  • Can’t take advantage of lower rates: 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.
  • Shorter draw period: 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.
  • Lower loan amount cap: Depending on your level of equity and other factors, you can withdraw only a maximum of $400,000. Some other lenders allow up to $1 million for eligible borrowers.

Type of fees charged

Guaranteed Rate charges a 1.5 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.

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. 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.

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 90 percent (or 95 percent, in some cases) 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 get started

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 rates Guaranteed Rate

Bankrate Score 4.6 Scoring factors
Availability 4.5 Quick approvals and fund delivery, but higher minimum loan amount
Affordability 4.6 Competitive rates with origination fee
Customer experience 4.5 Convenient online application and mobile app

Methodology

To create our Bankrate Scores, we evaluated lenders based on availability, affordability and customer experience. Availability was assessed based on the minimum loan amount required, time to approval, days to close, minimum draw requirements, minimum credit score requirements and loan types offered. Affordability was assessed based on minimum APR, discounts and promotions offered and associated fees. Customer experience was assessed based on online application and account availability, customer support, auto payment availability and mobile app availability and ratings.