Today we’ll check out “Rate Rabbit Home Loans,” a direct mortgage lender that says it uses a “new, Internet-based method to obtain a home loan.”
This includes the ability to apply in minutes via a digital mortgage application, along with the option to price a loan with live mortgage rates 24/7.
Their advanced technology should make it both quicker and easier to get a mortgage, and ideally cheaper as well thanks to a simplified online experience.
Let’s learn more about them.
Rate Rabbit Fast Facts
- Direct mortgage lender that offers home purchase loans and refinances
- Founded in 2011, headquartered in San Diego, CA
- Offers a One Fee Guarantee including all lender and third-party fees
- Currently licensed to do business in 11 states nationwide
- Has funded over $5 billion in home loans since inception
Rate Rabbit Home Loans is a direct-to-consumer mortgage lender based in San Diego, CA that operates entirely online.
They offer both home purchase financing to prospective buyers and mortgage refinances for existing homeowners.
And they rely upon non-commissioned loan consultants, which should translate to a less pushy and perhaps cheaper home loan experience.
With regard to customer satisfaction, over 80% of their clients are either repeat customers or referred by one of their customers.
At the moment, the company is licensed in 11 states nationally, including Arizona, California, Colorado, Florida, Idaho, Iowa, Kentucky, Massachusetts, Michigan, Tennessee, and Wisconsin.
How to Apply for a Home Loan with Rate Rabbit
- They offer a mostly self-serve loan process, though humans are standing by to help
- To get started search mortgage rates on their website and select a price/program you like
- Then simply click on “Apply” or request a call from one of their loan consultants to walk you through it
- Most tasks can be completed electronically from the comfort of your home
Rate Rabbit is big on technology and makes it super easy to get the ball rolling on your home loan.
First, navigate to their website and search their live mortgage rates to see if their pricing is to your liking.
In about 10 seconds, you’ll be able to price a loan and see dozens of options side-by-side with varying lender costs.
Once you find something you like, simply click on Apply and you can begin filling out their digital mortgage application.
Alternatively, you’ll be given the option to talk to one of their loan consultants if you select that option and fill out a short contact form.
It’s also possible to just call them up on the phone if you’d prefer to speak to a human right away.
After you submit your application, you’ll be able to manage it via an online borrower portal 24/7. This includes the ability to lock your loan at any time, day or night.
Loan Programs Offered by Rate Rabbit
- Home purchase loans
- Refinance loans: rate and term and cash out
- Conforming loans backed by Fannie Mae and Freddie Mac
- Jumbo home loans
- Interest-only loans
- Fixed-rate mortgages: 10, 15, 20, and 30-year terms available
- Adjustable-rate mortgages: 3, 5, 7, and 10- year terms available
Rate Rabbit offers both home purchase loans and mortgage refinances, including cash out refinances.
They lend on primary residences, second homes, and investment properties, including 1-4 unit properties and condominiums/townhomes.
You can get a conforming home loan backed by Fannie Mae or Freddie Mac, or a jumbo loan that exceeds the conforming limit.
The only real question mark is if they offer government-backed home loans, such as FHA loans, VA loans, and USDA loans.
In terms of specific loan programs, you can get a fixed-rate mortgage, with terms from 10 years to 30 years available.
Or an adjustable-rate mortgage, including a 3/1, 5/1, 7/1, and 10/1 ARM. Their ARMs also come with an interest-only option if you’re looking for a cheaper monthly payment.
In summary, they should have a loan program to suit most homeowners, though you may want to get in touch if you have a unique scenario.
Rate Rabbit Mortgage Rates
One perk to using Rate Rabbit is the ability to search live rates without having to reveal any of your personal information.
In fact, just answer a few basic questions and you’ll see a huge list of mortgage rates in seconds.
Their advanced rate search tool fully discloses the interest rate, APR, lender fees, and third party fees so you get a complete picture, not just a promotional number.
Rate Rabbit says it offers its customers “the most competitive rates available,” and I can confirm that I’ve seen them listed on the Zillow Mortgage Marketplace with the lowest rate and lowest APR for a 30-year fixed.
In terms of fees, Rate Rabbit has created what it refers to as a “One Fee Guarantee.”
They essentially took the many fees you’d find on a Loan Estimate and turned it into a “guaranteed and protected fixed-fee package.” Both lender and third-party costs are included.
Instead of an estimate, you are provided with a fee guarantee that won’t change once when the loan is locked.
For refinances, they provide a guarantee of the total costs of your loan, including all lender and third party fees.
On purchase loans, they guarantee the lender fees, but not other third party fees such as title insurance, inspection fees, recording fees, and so on.
When comparing rates on their website, you’ll see varying one fee guarantees, along with a no cost loan option that charges you nothing out of pocket in exchange for a slightly higher mortgage rate.
If you see something you like, you can click on Apply or request a call from a loan consultant.
All in all, I was impressed with their mortgage rates and their limited lender fees, which collectively result in some of the lowest mortgage APRs around.
As always, put in the time to shop around to ensure there aren’t other lenders offering even better deals.
Rate Rabbit Reviews
While Rate Rabbit doesn’t have a ton of reviews, the ones they do have seem to excellent.
For example, on Zillow the company has a very favorable 4.75-star rating out of a possible 5 from 124 reviews, with many indicating that the interest rate was lower than expected.
They’ve also got a perfect 5-star rating on Google from about 20 customer reviews.
The same goes for their 4.8-rating on LendingTree from about 20 reviews as well, and their 94% recommended score.
On Yelp, it’s a similar story, a perfect 5-star rating from just over a dozen reviews. While not a ton, at least they’re pretty much all positive.
They aren’t an accredited business with the Better Business Bureau and currently do not have a rating, which is due to a lack of sufficient information (maybe not enough feedback from customers).
To summarize, Rate Rabbit Home Loans could be a good choice for an existing homeowner looking for a low-cost mortgage as they seem to offer some of the best rates in the industry.
They could also serve your home buying needs, though first-timers may want more guidance from a brick-and-mortar shop.
Either way, their mortgage rates appear low and their customer satisfaction seems stellar.
Rate Rabbit Home Loans Pros and Cons
The Good
- Openly display their mortgage rates and lender fees 24/7
- Mortgage rates appear to be very low
- Offer no cost loan options and a fee guarantee
- Can apply for a mortgage directly online in minutes
- They use non-commissioned loan consultants
- Lots of loan programs to choose from including interest-only mortgages
- Excellent customer reviews from past customers
- Mortgage glossary on their website
The Not
- Only licensed in a handful of states
- No physical branches
- Unclear if they offer FHA/VA/USDA loans
(photo: Marit & Toomas Hinnosaar)