How Chestnut AI Can Cut Your Rate in a Rising-Rate Market
How Chestnut AI Can Cut Your Rate in a Rising-Rate Market
Why Rates Are Rising - and How Smart Borrowers Respond
Mortgage rates continue to climb, creating anxiety across the housing market. Rising interest rates, economic instability and recession fears are reshaping buyer psychology, splitting consumers between those rushing to buy and those delaying homeownership. Meanwhile, the home equity lending market is projected to increase by USD 48.16 billion at a CAGR of 4.7% between 2024 and 2029, highlighting the growing importance of equity access solutions.
In this environment, borrowers need every advantage they can get. That's where Chestnut AI enters the picture. Chestnut's AI compares rates from over 100 lenders simultaneously, with their technology helping to cut the borrower's rate by approximately 0.5%. This algorithmic approach hunts down savings that traditional shopping methods often miss, giving borrowers a crucial edge when every basis point counts.
Inside Chestnut's Comparison Engine: Shaving Basis Points Off Your Loan
The power of Chestnut's platform lies in its ability to process vast amounts of lender data instantly. Chestnut AI's <2-minute flow represents a breakthrough in mortgage pre-approval speed. By leveraging automation, AI can speed up approvals and communications while personalizing service across the entire lending process.
This rapid comparison capability matters more as the lending landscape evolves. "Fannie Mae projects that 55% of lenders will either start trials or roll out AI more broadly in 2025." The platform monitors live offers continuously, identifying optimal rate-and-fee combinations that manual shopping simply cannot match, ensuring borrowers lock in at precisely the right moment.
Automated Underwriting: From 45 Days to Eight Minutes
Traditional mortgage processing creates unnecessary delays and costs that ultimately get passed on to borrowers. However, "AI-based underwriting reduces the mortgage application processing time from an average of 30-45 days to just eight minutes." This dramatic acceleration transforms the borrowing experience.
According to recent industry research, "73% of mortgage lenders who have adopted AI solutions cited improving operational efficiency as their primary motivator." The transformation goes beyond speed - mortgage underwriting is undergoing a profound transformation, driven by advances in artificial intelligence and automation. These efficiency gains translate directly into cost savings that help offset rising rates.
Human + Machine: Solving the Trust Gap in AI Mortgage Broking
While AI delivers powerful benefits, consumer skepticism remains a real challenge. Research shows that "83.37% of respondents confirmed that they would not trust an AI Mortgage Broker to accurately assess their mortgage wants and needs." Similarly, just 6 per cent said they feel comfortable relying on an AI assistant to remortgage options, even if it could compare, apply for, and manage their loan.
Chestnut addresses these concerns through a human-in-the-loop approach. The platform combines AI-driven document processing automation with Human-in-the-Loop oversight, ensuring accuracy while maintaining the personal touch borrowers value. Worker concerns about AI are also being addressed - while about half of workers say they're worried about the future impact of AI use in the workplace, "four-in-ten workers who have used AI chatbots for work say these tools have been extremely or very helpful in allowing them to do things more quickly."
Staying Ahead of New AI Mortgage Regulations
The regulatory landscape for AI in mortgage lending is rapidly evolving. The Consumer Financial Protection Bureau and Office of the Comptroller of the Currency recently approved the Quality Control Standards for Automated Valuation Models, requiring mortgage originators to ensure algorithms meet five quality control standards designed to ensure accuracy and comply with nondiscrimination laws.
At the state level, Colorado became the first state to enact a statute governing these tools in May 2024. Meanwhile, the proposed federal AI moratorium on state AI bills was removed from the "One Big Beautiful Bill" by a 99-1 Senate vote on July 1, 2025, clearing the way for continued state-level AI regulation. Chestnut stays ahead of these requirements, building compliance into its platform from the ground up.
Beyond Purchases: Refinances, HELOCs, and Unlocking Equity in 2025
Chestnut's capabilities extend well beyond purchase loans. With the home equity lending market projected to increase by USD 48.16 billion between 2024 and 2029, access to equity has become increasingly important. Chestnut monitors interest rates and helps you lock in at the optimal time, whether you're refinancing or accessing home equity.
High mortgage rates and trapped home equity are stalling transactions across the market. As one industry expert noted, "There's trillions of dollars in home equity. It's at an all-time high right now. And it's where most of client wealth is. Products around equity, I think, are really important." The platform addresses this need directly, offering streamlined HELOC and refinancing options that help borrowers access their equity efficiently.
The Bottom Line: Lock In Savings with Chestnut Today
In a rising-rate environment, every basis point matters. Chestnut Mortgage combines cutting-edge AI technology with human expertise to deliver tangible savings. The platform has already powered over $85 billion in mortgages while maintaining a 5.0 Google rating, proving that technology-driven efficiency and customer satisfaction can go hand in hand.
Don't let rising rates lock you out of homeownership or prevent you from accessing your home equity. With Chestnut's AI-powered platform comparing offers from over 100 lenders and delivering pre-approvals in under two minutes, you have the tools to secure the best possible rate in any market. Visit Chestnut Mortgage today to see how much you could save on your next mortgage.
Frequently Asked Questions
How does Chestnut AI help lower my mortgage rate when rates are rising?
Chestnut AI compares offers from 100+ lenders in real time and optimizes the total rate-and-fee package. By surfacing options manual shopping can miss and timing locks precisely, many borrowers see about a 0.5% lower rate compared with typical alternatives. Results vary by borrower profile and market conditions.
Is the under-2-minute pre-approval a commitment to lend?
No. The fast pre-approval streamlines data collection and pricing to deliver personalized scenarios in under two minutes, so you understand your options quickly. Final approval still requires full underwriting and documentation.
How does Chestnut combine AI with human expertise to ensure accuracy?
Chestnut's human-in-the-loop model pairs AI-driven document processing with experienced mortgage experts. Specialists review key steps, verify details, and answer questions, improving accuracy and confidence without slowing the process.
What AI-related mortgage regulations should borrowers know about?
Federal regulators approved quality-control standards for Automated Valuation Models to support accuracy and fair lending, and Colorado enacted a first-of-its-kind AI statute for real estate finance. Chestnut builds compliance into its platform and tracks evolving state-level rules to keep your loan aligned with current requirements.
Can Chestnut help with refinancing and HELOCs, not just home purchases?
Yes. Chestnut supports refinancing and HELOCs, monitoring live offers so you can access equity efficiently and lock at an opportune time. With home equity at high levels and the market for equity lending projected to grow, these options can help you put your home's value to work.
Where can I learn how mortgage rates work and how to get the best one?
Review Chestnut's guide at chestnutmortgage.com/resources/how-mortgage-rates-work-(and-how-to-get-the-best-one). It explains what drives mortgage rates and strategies to improve your offer, including lender comparison and timing.
Sources
https://chestnutmortgage.com/resources/how-mortgage-rates-work-(and-how-to-get-the-best-one
https://technavio.com/report/home-equity-lending-market-analysis
https://www.emarketer.com/content/nonbank-lenders-pulling-ahead-on-ai-innovation-mortgages
https://imoveis.finsolutia.com/blog/mortgage-underwriting-transformed-by-ai-and-automation
https://ocrolus.com/whitepapers/mortgage-underwriting-whitepaper