Rate: 2025 Home Equity Review

Rate overview

Founded in 2000, Chicago-based Rate in 2024 is the second largest retail mortgage lender in the U.S. Licensed to lend in 46 states, it has 850 branches throughout the U.S. and in Washington, D.C. It specializes in home-based financing and homeowners coverage, but also provides personal loans and insurance products.

Pros and cons of Rate

How Bankrate scored Rate 

Affordability: 5/5

• APR: While Rate doesn’t have an introductory APR, it does indicate a range of rates – both basic interest rate and APR – on its website. Advertised APRs on its website include a 0.25% discount for setting up autopay. Its rates do skew lower than national averages
• Fees: There are no closing costs, except for a 1.99% origination fee. This is deducted from the line of credit and you won’t need to bring any money to closing.

Rate scores a perfect 5 out of 5 for affordability because of its competitive fixed rates, discount for autopay and lack of upfront costs. 

Availability: 4.4/5 

• Loan products: Rate doesn’t offer home equity loans, but does offer a fixed-rate HELOC.
• Footprint: Rate’s HELOCs are available in all states except New York, Kentucky, West Virginia, Delaware and Maryland.
• Loan minimum: Rate’s HELOC loan minimum is $25,000, a pretty typical sum. 
• Credit score: 640, which is low-average by home equity lending standards.
• Draw requirement: Rate requires that the full HELOC loan amount be drawn at the time of origination – which to some might defeat the point of a revolving credit line. 

Rate receives a 4.4 out of 5 for availability because its fixed-rate HELOC is available in most states and its credit score minimum is low. The single product offering drags it down a bit.

Borrower experience: 4/5

• Rate transparency: The website only displays a general range. To see the rates you might qualify for, Rate will perform a soft credit pull that won’t impact your credit score. 
• Convenience: You can apply for HELOC in five minutes and get your money in about five days. 
• Customer service: You contact Rate by email, phone, through the app and also in-person at one of its 850 branches across all 50 states and Washington D.C. 
• Fixed-rate options: Rate’s HELOC comes with a fixed rate. Different fixed rates might apply to additional draws. The borrower has no say in locking in a rate.

Rate scores a strong 4 out of 5 for borrower experience, pulled down mainly by the lack of borrower ability to lock in a rate and the lack of rate transparency.

Rate’s reputation 

Rate gets an A+ rating with the Better Business Bureau and has been accredited since 2009. Trustpilot customers gave Rate a “poor” rating, but only two dozen reviews are posted there.

Home equity products offered

Rate only offers home equity lines of credit (HELOCs). However, its HELOC is a fixed-rate product, which is different from the conventional HELOCs 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 (after you repay) 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.

The amount you can borrow will depend on your eligibility qualifications, including how much equity you have in your home. Rate’s maximum combined loan-to-value ratio (CLTV) is 85 percent.

How to qualify for a home equity loan with Rate

To qualify for a HELOC from Rate, you’ll need a minimum credit score of 640, 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 for a home equity loan with Rate 

You can apply for Rate’s HELOC through the lender’s 100% digital application, which can be completed in 5-10 minutes. Be prepared to verify your identity and provide information about your annual income and financial profile. Once approved, you can expect to receive your funds in as little as five days. 

The lender’s business hours are Monday through Friday, 8:30 a.m. to 7:00 p.m. CT. You can pose questions to the lender’s virtual assistant, call 866-934-7283 or email HomeLoanExperts@rate.com.

• Methodology

  To determine a home equity lender’s Bankrate Score, Bankrate rates lenders on a scale of one (1) to five (5) stars — with five (5) the highest rating — based on a variety of factors relating to the lender’s products and services. To assign our ratings, we assessed each mortgage lender across three core areas:

  • Affordability: Annual percentage rate (APR) - 80%; introductory APR - 20%
  • Availability: Licensing - 50%; credit score - 20%; loan minimum - 10%; draw requirement - 10%; loan products - 10% 
  • Borrower experience: Rate transparency - 35%; convenience - 35%; customer service - 20%; fixed-rate options - 10%

  Learn more about our methodology.