Rocket Mortgage is among the largest mortgage lenders in the country. It was founded under the name of Quicken Loans in 1985, but it was changed to Rocket Mortgage in 2021. The mortgage company is based in Detroit, and it offers a fully digital experience where people can buy or refinance a home.
There are a variety of home loans and refinancing options available through Rocket Mortgage with Quicken Loans. This company is one of the largest mortgage lenders in the country and is licensed in all 50 states.
The best thing about Rocket Mortgage is that it offers the customer mortgage loans and home refinancing loans through an entirely online process.
|Minimum credit score||720|
|Debt-to-income ratio||Below 30%|
Adjustable-rate mortgage (ARM)
United States Department of Agriculture (USDA) loan
Federal Housing Administration (FHA) loan
Veterans Affairs (VA) loan
Rocket Mortgage Services
Rocket Mortgage is specifically offered for mortgages and refinancing services.
Here are the following types of loan options available with Rocket Mortgage:
- 15-year fixed loans
- 30-year fixed loans
- FHA loans
- Adjustable-rate loans
- Jumbo loans
- VA loans
- YOURgage fixed-rate, custom-term loans
- Refinancing for a lower payment, cash, or shorter-term
Pros & Cons
After discussing what Quicken Loans or Rocket Mortgage loans are, it's time to discuss the advantages and drawbacks of these mortgage loan services.
- The foremost and one of the best things is that there are online tools available to upload and track your application securely.
- Being in this service sector for many years, they offer the best customer satisfaction and support.
- There are several flexible loan options available with low down payments
- You get a pre-qualification estimate in just a couple of minutes
- There are no second mortgages or USDA loans
- The customer service is online, and there is no face-to-face interaction
- If you don't buy discount points, then the rates may seem higher than advertised
- Those borrowers who have an existing high debt or bad credit may have to face unfriendly customer support
- They don't offer HELOCs or equity loans
When you have finally decided to go for the mortgage option to refinance your home or buy a new one, the next step is to decide which kind of mortgage option is best for you. Here are the Loan options available with Rocket Mortgage Loans:
- Adjustable-rate mortgage (ARM)
- Fixed-rate mortgage
- United States Department of Agriculture (USDA) loan
- Federal Housing Administration (FHA) loan
- Veterans Affairs (VA) loan
- Jumbo loans
Rates & Fees
Rocket Mortgage mainly advertises purchase and refinance rates on a day-to-day basis for VA loans, 30-year loans, 15-year loans, and FHA loans. These rates change daily and are dependent upon a few assumptions, including:
- Your credit score is higher than 720
- Your debt-to-income ratio is below 30%
So, not everyone will be able to qualify to get the minimum rates.
The discount rates can include discount points, so be sure to pay heed to the APR and fees. If you need a lower interest rate, then you have to pay a mortgage point or discount point as an optional upfront fee. A discount fee usually costs 1% of the loan balance. Then the rate is reduced by .25%. Therefore, you may have to pay a higher mortgage rate than previously told if you desire to avoid the extra fees.
Basically, the type of loan you are opting for determines the minimum credit score required. You need a minimum score of 620 to get most of the loans, such as VA loans and conventional loans.
You need a minimum credit score of 580 to qualify for FHA loans. This is just an estimate of the minimum credit scores needed to qualify for the loan type. But the people with the highest credit scores are most likely to qualify for the best mortgage rates.
You will have to submit an application to know everything about closing costs, including the discount points and lender fees. You may have to pay late fees, the amount depending on how late you pay your payment. Rocket Mortgage does not have any payment penalties or application fees for any type of its loans.
Rocket Mortgage extends the rate lock with an extra 15 days for free after you lock in your interest rate for 45 days. To cover the rate lock and appraisal, you have to deposit $500. You can apply this deposit for loan costs in the future.
One of the most important factors is the reputation and rating of Mortgage Loans. U.S news has given 4.4 out of 5 stars to Rocket Mortgage.
In addition, Rocket Mortgage has been able to get an A+ rating from the Better Business Bureau. Trustpilot gave Rocket Mortgage 3.9 out of 5 stars.
Let me briefly tell you about the Rocket Mortgages' overall score:
- Variety of loan types received 4 out of 5 stars
- Ease of application received 5 out of 5 stars
- Rates and fees received 2 out of 5 stars
- Rate transparency got 4 out of 5 stars
- Average organization fee earned 1 out of 5 stars
To make the decision much easier, here are some samples of customer reviews that Rocket Mortgage got.
The positive reviews are:
Some negative reviews are:
How Can You Qualify?
The next thing to know after going through the customer's reviews is who could qualify for Rocket Mortgage. Here is a breakdown of the eligibility criteria for each type of Rocket Mortgage:
Have a minimum credit score of 580 to qualify for an FHA loan. This also requires a down payment of at least 3.5%.
Have a minimum credit score of 620 and qualify for a conventional loan from Rocket Mortgage.
The Detroit-based lender is among the most popular mortgage lenders in the U.S. due to its seamless and digital-first mortgage process. But the ease of application should not be the only thing considered while choosing a lender. But it would help if you also compared the rates of different companies to find out the best deal.