Bankrate Reviews

Bankrate is an online publication that aims to educate readers on financial matters and help match them up with products and services that best fit their needs. Bankrate covers a wide range of products, from savings and checking accounts to personal loans and mortgages.

Bankrate itself is not a lender. Instead, it enables users to easily compare rates, terms, and features and then connects users to the services they choose.

Bankrate is a good place to start your home lender search. Although you won’t get a specific rate from Bankrate, you’ll be able to see varying offers from different lenders.

Before choosing a lender with Bankrate, it’s important to understand the difference between an interest rate and annual percentage rate (APR). Lenders typically advertise both. The interest rate represents the cost of borrowing money from that lender. The APR is the actual amount you will repay the lender after the fees are added in. When comparing rates, you generally want to look at the APR rather than the interest rate to get a better idea of the total cost of borrowing.

The first step to any home loan process is to shop rates. Bankrate makes that easy to do. You’ll start by answering a few quick questions about your home needs. Bankrate will then provide lender recommendations that it thinks match well with your needs.

From there, you should research and compare the companies Bankrate recommends — we suggest seeking out unbiased reviews whenever possible. The final step will be to apply for your loan. From there, the application process is in the hands of the lender and it’ll look different depending on the company you choose to go with.

Bankrate can connect you with lenders that offer common home loan types. The most common home loan types include:

• Conventional loans: This is a good choice for borrowers with good credit. Homebuyers can put as little as 3% down, depending on the lender, but a down payment of less than 20% will result in private mortgage insurance (PMI).
• Jumbo loans: For those with excellent credit that need more financing than a conventional loan can offer, a jumbo loan is often the right option.
• Government-backed loans: FHA, VA and USDA loans are government-backed loans designed for borrowers such as first-time homebuyers, military members and veterans and those wishing to purchase a home in eligible rural areas.

Refinancing

Bankrate provides a chart that allows you to compare the estimated upfront and eight-year costs with different refinance lenders. These are good figures to help you determine if refinancing to a slightly lower interest rate will save you money.

HELOC and home equity loans

Bankrate also offers information on home equity line of credit (HELOC) and home equity loan providers. As with purchase and refinance mortgages, you start by answering a few questions about your needs, and Bankrate shows you rates from various lenders.

Bankrate is free to use to request quotes. You only need to put in basic home loan information, such as where you are in your home search process, your estimated credit score and desired loan amount to get a personalized list of recommendations.

Before you request a mortgage quote, it is ideal to know how much house you can afford. Aiming for a home purchase amount on the lower side of your budget range can help keep your monthly mortgage payment manageable. Plus, having a lower loan-to-value ratio can help you lock in a better APR.

National mortgage requirements by type

Bankrate is free to use, but each lender suggested by Bankrate will have its own list of loan fees. As you compare mortgage rates, it is also important to compare closing costs and other fees. After you apply, a lender must provide a Loan Estimate, a form that breaks down estimated costs of a mortgage loan. This ensures there are no surprises going into closing.