Rocket Mortgage is the online mortgage application tool by Quicken Loans. Rocket Mortgage is highly rated by customers, so it's no surprise Quicken Loans is one of the biggest mortgage lenders in the U.S. by loan volume. Throw in the fact that Rocket Mortgage offers a wide array of loan terms and products in all 50 states, and you've got a mortgage lender worth considering. Read our in-depth Rocket Mortgage review and discover if this popular lender is is the best mortgage lender for you.
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Best for: Loan options and online application
Led the transition to online-only applications and that seamless process is one reason which it has become the largest U.S. lender. Consistent JD Power customer service rankings and its high-quality app make it hard to ignore.
This mortgage lender is a good fit for: Rocket Mortgage is great for home buyers who are comfortable conducting business online. The Rocket Mortgage digital application is the industry benchmark and its app makes the application process a cinch while on the go.
Quicken Loans, the home of Rocket Mortgage, is on fire when it comes to customer service. It ranks No.1 in two J.D. Power customer satisfaction surveys -- mortgage origination and mortgage servicing. It has held the top position in the mortgage origination survey for 11 consecutive years and grabbed the No. 1 mortgage servicer prize for the last seven. Quicken Loans is extremely proud of these respected rankings. They illustrate how much customers like the application process, as well as the treatment they receive after they get a mortgage.
Rocket Mortgage was a pioneer in online mortgage application technology. Its home loan process is entirely online, up to closing. In the Rocket Mortgage app, you can share information automatically by linking your asset accounts. The closing documents still need to be signed in ink, but you can plan to do that at the location and time of your choosing.
Rocket's home buying app is a standout among mortgage lenders. You can begin your application via the app, upload documents, and manage payments, among other feature-rich capabilities. Rocket's app excellence is corroborated by its consistently high app ratings.
If you qualify for an FHA or VA loan, you can get a mortgage with a low down payment or no down payment. Rocket Mortgage also offers several affordable loan programs, including Freddie Mac's Home Possible mortgage.
Rocket Mortgage offers loans that allow a debt-to-income ratio, or DTI, of up to 50%. Most lenders consider a DTI under 36% to be excellent. If your DTI is on the high side (44-50%), you might still qualify for a mortgage. Your application may need to be stronger in other areas, though. For example, you may need to make a larger down payment or have a higher credit score.
Mortgage loan terms don't have to be 15 or 30 years, though those are the most common. Rocket Mortgage allows the borrower to set a term of any number of years between eight and 30.
Rocket Mortgage offers RateShield™ Approval, which combines mortgage pre-approval with a rate lock. On a 30-year conventional, FHA, or VA fixed-rate purchase loan, applicants are pre-approved once the information has been verified by an underwriter. The interest rate is then locked for up to 90 days. The mortgage rate lock has a float-down feature, which means that if interest rates fall, you'll get the lower rate. If interest rates rise, your rate remains locked in at the lower level.
Many lenders sell their mortgages after the loans close. When you pay your bill, you're suddenly dealing with a different company than the one you worked with to get the loan. But Quicken Loans, which is under the same company umbrella, services 99% of Rocket Mortgage loans.
You cannot do business in person with Rocket Mortgage or Quicken Loans. It is a strictly online process. Live humans are available to assist, but you won't be able to talk face to face.
You can't get a home equity loan or home equity line of credit (HELOC) with Rocket. If you're interested in accessing a portion of your home equity in the form of cash, the only way to do so through Rocket Mortgage or Quicken Loans is with a cash-out refinance loan.
If you don't qualify for an FHA or VA loan, you'll probably need to come up with a down payment. (You might qualify for down payment assistance, but those programs are not administered by Quicken Loans.) Also, Rocket Mortgage does not offer a low down payment mortgage without private mortgage insurance (PMI).
Currently, Rocket Mortgage does not offer this loan type.
If you want to avoid origination fees and find a competitive rate: Better.com Mortgage boasts both no origination fees and highly competitive rates. The lender guarantees it can offer the lowest-cost loan and will beat a competing offer by $100 or give you $100 if they can't.
If you want to avoid PMI: PNC Bank could be a good option for someone who wants to make a down payment that is less than 20% but also doesn't want to get saddled with a PMI premium to pay each month. For buyers who are low on cash, the PNC Community Loan allows a down payment of 3% and has no PMI requirement. There's also PNC's 80-10-10 loan which requires a down payment of 10.1% and has no PMI requirement.
Before you apply, do your best to clean up your credit report and score. You can apply for an FHA loan through Rocket Mortgage with a score as low as 580, but this loan typically costs more than other loans. With a score of 620 or higher, you can apply for a conventional loan and possibly qualify for a lower rate. The lowest advertised mortgage interest rates will be offered to the most well-qualified applicants. You'll need an excellent credit score (720 or higher) to get the best deal.
Next, look at your debt-to-income ratio. Debt-to-income ratio, or DTI, is the sum of your required minimum monthly debt payments divided by your total gross income. Most mortgage lenders want to see this number under 43%, but Quicken Loans offers some loans to applicants with a DTI as high as 50%. If your DTI is that high, you'll need to make a stronger showing in other areas of the application. In other words, you'll probably need a larger down payment or higher credit score.
Once you're ready to apply for pre-approval or for a mortgage, you'll find Rocket Mortgage's platform very easy to use. In addition to bank account balances, you will need to provide income and employer information, and your Social Security number. Rocket Mortgage can connect with your financial institutions and grab the documents automatically, or you can submit them by fax or email.
You won't need any cash to close your loan. All of your closing costs can be rolled into the loan, leaving you with more money for your down payment or moving expenses.
Refinance rates at Rocket Mortgage tend to be average to low for the industry. For a 30-year fixed-rate loan, there is currently no difference in the lowest advertised interest rates for purchase or refinance loans. That said, the fees on a refinance are slightly lower, resulting in a lower total cost on the refinance loan. FHA loan and VA loan borrowers pay comparable rates, with small differences in cost resulting from differences in fees.
Rocket Mortgage rates trend about the same as the national average. The day we checked, Rocket Mortgage's advertised rate on a 30-year fixed-rate mortgage was just 4/100ths higher than Freddie Mac's published national average rate. Keep in mind, though, that other lenders who advertise lower interest rates may charge higher fees. The number you want to look at when you compare loans is the APR or annual percentage rate. That number will be a little higher than the interest rate, and reflects the true cost of the loan.
If customer service is the most important factor in a transaction for you, Rocket Mortgage might be a great fit. Similarly, if you don't want another company to service your loan in the future, take a closer look at Rocket Mortgage.
Rocket Mortgage should also be on your shortlist if you're devoted to conducting your business entirely online (or haven't been inside a physical bank branch in years). This platform is tailored to the needs and expectations of today's online buyer. The application process is easy, speedy, device-friendly, and the gold standard to which other online mortgage applications tend to be compared.
The lowest advertised rate at Rocket Mortgage is right on par with the national average. As one of the nation's largest lenders, Rocket Mortgage is highly competitive.
One nice thing about Rocket Mortgage is that it consistently gets very high marks for customer service. The No. 1 one ranking, in fact, in some large surveys. In light of its low rates and excellent service, Rocket Mortgage is definitely worth your consideration.
Yes. Rocket Mortgage fees are a little lower for refinance mortgages than purchase mortgages, so the overall cost of the loan is lower.
Rocket Mortgage offers loans with different requirements in order to meet the needs of most borrowers. If your credit score is in the 500-620 range, you might qualify for an FHA loan from Rocket Mortgage. For a conventional mortgage, you'll need a 620. For Rocket Mortgage's lowest rate, you'll need a 720 credit score. Rocket Mortgage will also look at your debt-to-income ratio and the amount of cash you have for a down payment and reserves. If you're ready to discuss options that are right for your situation, contact Rocket Mortgage directly.
Rocket Mortgage offers a variety of purchase and refinance home mortgage loans:
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