Guaranteed Rate HELOC: Fast, Convenient and Digital
Today, more and more people are recognizing the incredible value of tapping into the surging value within their homes. One way to do that is with the new Guaranteed Rate HELOC1 (Home Equity Line of Credit). This is a unique new product that differs in some really compelling ways from a traditional HELOC that you would find at a large bank or a personal loan that you could get online.
A traditional HELOC is a variable-rate loan that typically take 45-60 days to close2, and it includes full processing like a mortgage. On the other hand, an online digital personal loan is a fast process, offering a fixed rate on a limited loan size, but it features a higher interest rate and only a single opportunity to receive any cash.
Guaranteed Rate’s new HELOC is different. It offers a fixed rate and a fixed term with the flexibility to make future withdraws. It’s also priced competitively compared to personal loans.
The Guaranteed Rate HELOC is specifically designed to be quick and easy, funding within 5 to 10 days3. It’s also 100% digital from application to closing, with the application taking only about 5 to 10 minutes to complete and approval coming in just moments. It’s structured as a fixed-rate loan with term options of 5, 10, 15 or 30 years. In addition, you can take money from the line of credit for a draw period of 2 to 5 years, depending on the term selected. Best of all, it requires no money upfront from the customer (any fees are included in the loan amount), and funding comes in as fast as just five days.
What are the requirements for Guaranteed Rate’s new HELOC? Eligible property types include single-family residences, townhomes and condos. Eligible occupancy status includes owner-occupied homes, second homes and investment properties. The minimum loan amount for Guaranteed Rate’s new HELOC is $15,000, and the maximum loan amount is $400,0004.
The Guaranteed Rate HELOC is a great way for customers to get the equity out of their homes at a low rate and use the funds for any number of home improvement projects or to consolidate other higher interest debt.
- Guaranteed Rate, Inc. home equity line of credit (HELOC) is an open-end product where the full loan amount (minus the origination fee) will be 100% drawn at the time of origination. The initial amount funded at origination will be based on a fixed rate; however, this product contains an additional draw feature. As the borrower repays the balance on the line, the borrower may make additional draws during the draw period. If the borrower elects to make an additional draw, the interest rate for that draw will be set as of the date of the draw and will be based on an Index, which is the Prime Rate published in the Wall Street Journal for the calendar month preceding the date of the additional draw, plus a fixed margin. Accordingly, the fixed rate for any additional draw may be higher than the fixed rate for the initial draw. This product is currently not offered in the states of New York, Utah, Kentucky, South Carolina, Hawaii, Texas, West Virginia, Delaware and Maryland. The HELOC requires you to pledge your home as collateral, and you could lose your home if you fail to repay. Borrowers must meet minimum lender requirements in order to be eligible for financing. Available for primary, second homes and investment properties only. Dependent on minimum credit score and debt-to-income requirements. Occupancy status, lien position and credit score are all factors to determine your rate and max available loan amount. Not all applicants will be approved. Applicants subject to credit and underwriting approval. Contact Guaranteed Rate for more information and to discuss your individual circumstances. Restrictions Apply.
- Curinos Home Equity and Retail First Mortgage Originations Consortiums
- Approval may be granted in five minutes but may be subject to verification of income and employment. Five business day funding timeline assumes closing the loan with our remote online notary. Funding timelines may be longer for loans secured by properties located in counties that do not permit recording of e-signatures or that otherwise require an in-person closing. In addition, funding timelines may be longer if we cannot readily verify that your property is in at least average condition with no adverse external factors with a property condition report and may need to order a desktop appraisal to confirm the value of your property.
- Our loan amounts range from a minimum of $15,000 to a maximum of $400,000. For properties located in AK, the minimum loan amount is $25,001. Your maximum loan amount may be lower than $300,000 and will ultimately depend on your home value and equity at the time of application. We determine home value and resulting equity through independent data sources and automated valuation models.
For more information about HELOCs go to: https://files.consumerfinance.gov/f/201401_cfpb_booklet_heloc.pdf