RateZip Review - Mortgage Loan

Application & Approval Process
Rates & Fees
Payment Terms
Customer Support & Benefits

About RateZip

Founded in 2007, RateZip came about from the need of transparency while shopping for mortgages. The company runs a comparison website that helps consumers find competitive rates and flexible loan terms by connecting them to a network of thousands of banks, wholesale and direct lenders. They have partnered up with some of the largest national lenders, as well as scores of local and regional lenders. RateZip is not a direct lender, instead it provides an extremely effective way for consumers to find and compare mortgage loan programs.





  • Easy online process
  • Free service
  • Extensive list of lenders
  • Team of educated and experienced brokers working on the platform


  • Not a direct lender

Key Highlights

  • Minimum credit score varies across lenders.
  • Minimum down payment differs across lenders.
  • Uses real data analyst to provide accurate information.
  • Offers fixed and adjustable rates.
  • Offers purchase and refinance loans.
  • • Best for customers searching for personalized full service rather than smart algorithms, as the company utilizes professional brokers.

Application & Approval Process


RateZip is not a direct lender but is a comparison tool used to supply applicants with all the loan options available to them according to their profile. It makes the traditional loan process much easier by cutting down on applying to individual lenders separately and waiting for them to get back to you with quotations. With RateZip, you need to apply once by completing a basic questionnaire, providing information such as full name, contact details, the area you reside in, type of loan you’re looking for, property details and credit score. The company will then summarize the information and start matching you with the most appropriate mortgage loan companies according to your profile.

RateZip has a unique approach to publishing financial data on their website compared to other online lending marketplaces. Instead of using smart algorithms, the company adopts a more personalized approach by having professional brokers review and analyze the market to publish accurate rates and fee information.

Once you receive all the offers from interested lenders you are free to compare them against each other and decide which one is the best for you. Do note that you must be at least 18 years old and have the legal authority to enter into an agreement.


From this step onward, everything is done directly with the Lender, as RateZip does not issue loans or mortgages themselves.  You are under no obligation to accept any offers, however if you do, you are will be asked to complete their loan application. Every lender has a set of requirements which are mostly similar, but not limited to:

Personal Information

  • Name
  • Phone number
  • Email address
  • Date of birth
  • Address
  • Marital status
  • Children status


  • Level of education

Housing information

  • Location of the property
  • Estimated purchase price
  • Estimated down payment


  • Employment type
  • Employer details


  • Gross annual income
  • Other sources of income
  • Available assets
  • Monthly non-mortgage debt payments


This is the final step of the loan process and the lender would need to conduct a hard pull on your credit, bear in mind that this might have an impact on your credit score. As you get approved, your lender will likely need to conduct a property appraisal to assess its value and you will be informed accordingly.

Afterward, you are required to undertake the usual loan suitability checks by submitting or uploading documents such as pay stubs, bank statements and tax returns to verify your income, employment and financial situation. Upon successful verification, the final step is to sign off the loan papers either in person or electronically and your lender will start working on releasing the funds.

Rates & Fees

RateZip does not charge users for its service since it is a free online comparison tool. Regardless of whichever vendor you choose, there are third-party fees involved when buying or refinancing a house and these could range from:

  • Appraisal fees
  • Home inspection fees
  • Document preparation fees
  • Title fees
  • State taxes
  • Application fees
  • Attorney’s fees
  • Prepaid interest
  • Assumption fees

There are sometimes additional fees associated with loan providers such as closing fees, late payment surcharge and more, we suggest that you look into the fee structure of your preferred lender before accepting any offers.

Since the company has an extensive list of private lenders and banks, they can offer both fixed and variable rates. However, these are determined according to your credit score and your profile. The mortgage rates can fluctuate according to market conditions. Here are some of the market APRs (correct as of April 2020) for different loan types, expect to see somewhat similar rates:

  • 30-Year Fixed – 3.78%
  • 20-Year Fixed – 3.74%
  • 15-Year Fixed – 3.33%
  • 10/1 Adjustable (fixed for the first ten years) – 3.82%
  • 7/1 Adjustable (fixed for the first seven years) – 3.82%
  • 5/1 Adjustable (fixed for the first five years) – 3.94%

Payment Terms

The payment term for loans differ across lenders on their platforms such as Figure that provide loan terms of 5, 10, 15 and 30 years. A typical mortgage term can go up to 30 years, however there are banks and private lenders on the platform that offer 10, 15, 20- and 25-year fixed and adjustable terms. If you’re looking to pay off your loans quickly and have the financial capacity to do so, then we suggest looking for a loan with a short payment term.

Customer Support & Benefits

If you have any complaints or feedback, you can reach out to RateZip through their online contact form which requires details such as your full name, contact number, email address and your message. A customer service representative or an agent will reach out to you as soon as possible. It is important that you do your research on the benefits offered by the lender you choose to go with since RateZip will not be servicing your loan themselves.

The website features a blog section with articles related to financial literacy and personal finance news. You can also search for current interest rates according to different states, this is quite useful for users looking for information related to mortgages in another state than the one they are residing in.

Lastly, RateZip has a lender’s review section with all the lenders listed out. You can open up any loan provider from the list and view details about the company, editors rating and a quick link to transfer you to their website.




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