Rocket Mortgage review: Online lender with high customer ratings, higher than average rates

Insider’s experts choose the best products and services to help make smart decisions with your money (here’s how). In some cases, we receive a commission from our our partners, however, our opinions are our own. Terms apply to offers listed on this page.

Rocket Mortgage has conforming, jumbo, FHA, and VA mortgage loan options.

The bottom line: Rocket Mortgage by Quicken Loans is a great option if you’re comfortable applying online and have a good credit score.

Overall lender rating

FeatureInsider rating (out of 5)Loan Types3.5Affordability4Customer satisfaction4.5Trustworthiness5Total4.5

Pros and cons

Advertisements

ProsCons

Quick, user-friendly experience

Conventional, FHA, VA, or jumbo mortgage lending options

Terms as short as eight years

Not able to speak with a lender face-to-faceDoesn’t have a USDA loan, home equity loan, HELOC, reverse mortgage, or construction loanCan’t apply with alternative credit data (like utility bills) because you have a low or no credit score

Rocket Mortgage interest rates

When you visit the Rocket Mortgage website, select “Rates” on its menu. It shows you interest rates and APRs on 30-year fixed conforming mortgages, 30-year VA mortgages, 30-year FHA mortgages, and 30-year jumbo mortgages.

You can read the assumptions for these rates on the website. For example, the 30-year rates shown include 1.875 points at closing and assume you have a credit score over 720 and a debt-to-income ratio below 30%.

Unlike with some online lenders, you can’t plug in your information (like mortgage amount, down payment amount, or credit score) to see a more personalized rate on the site. You’ll need to create an account before you can see customized rates.

Right now, the 30-year conforming loan rate on Rocket Mortgage’s website is slightly higher than current average rates.

Compare to other lenders

Advertisements

Rocket Mortgage vs. Better.com

Types of mortgages

Conforming, jumbo, FHA, VA

Types of mortgages

Conforming, jumbo, FHA

Alternative forms of credit

No

Alternative forms of credit

No

Rocket Mortgage by Quicken Loans

Better.com Mortgage

Better.com doesn’t offer any VA loans, so you’ll want to go with Rocket Mortgage if you’re an active military member or veteran. Rocket Mortgage also provides a live chat feature, which is convenient if you don’t like talking on the phone.

However, Better.com makes it easy to see customized rates without signing up for an account first. It also provides you with a preapproval letter within 24 hours, whereas Rocket Mortgage’s turnaround time for letters varies.

Rocket Mortgage vs. Guild Mortgage

Advertisements

Types of mortgages

Advertisements

Conforming, jumbo, FHA, VA

Types of mortgages

Conforming, jumbo, FHA, VA, USDA, renovation, reverse

Alternative forms of credit

No

Alternative forms of credit

Yes

Rocket Mortgage by Quicken Loans

Guild Mortgage

Guild Mortgage is probably better for people with low/no credit scores, because it accepts alternative credit data like utility bills. Guild also offers more types of mortgages, so you can use it if you need a USDA mortgage, renovation loan, or reverse mortgage.

Guild Mortgage is unavailable to residents of New Jersey or New York, so if you live in either of those states, Rocket Mortgage is the clear choice.

How Rocket Mortgage works

Rocket Mortgage is the online mortgage application platform under Quicken Loans. Rocket Mortgage is available in all 50 US states, and it offers the following mortgage products:

Conventional mortgages (both conforming and jumbo)FHA mortgagesVA mortgagesBoth fixed-rate and adjustable-rate mortgages

You can’t get a USDA mortgage, home equity loan, HELOC, construction loan, or reverse mortgage through Rocket Mortgage.

If you’re refinancing, you can choose from the following options:

Traditional rate-and-term refinanceCash-out refinanceVA IRRRL, if it’s on your primary residenceFHA streamline refinance

Some lenders allow you to apply with alternative credit data if you either don’t have a credit score or have a very poor one. For example, you could show proof that you have a history of paying utility bills on time. Rocket Mortgage doesn’t allow alternative credit data, so it’s a better fit for borrowers with good credit scores. The minimum credit score requirements depend on which type of mortgage you get.

You can chat online with an automated assistant 24/7. Chat online with a live representative Monday through Friday from 7 a.m. ET to midnight ET, or weekends from 9 a.m. to midnight ET.

If you need to talk about a new mortgage, you can talk with someone over the phone Sunday through Friday from 9 a.m. to 7 p.m. ET, or Saturday from 9 a.m. to 8 p.m. ET.

To talk about an in-process loan, closed loan, or signing in, call Monday through Friday from 8:30 a.m. to 9 p.m. ET, or Saturday from 9 a.m. to 4 p.m. ET.

Is Rocket Mortgage a reputable business?

Advertisements

Rocket Mortgage ranked as the top lender for customer satisfaction from J.D. Power for 11 consecutive years, and it ranked as No. 2 in 2021. It also has an A+ rating from the Better Business Bureau. The BBB measures trustworthiness based on response to customer complaints, honesty in advertising, and transparency about business practices.

In 2019, the US Justice Department required Rocket Mortgage’s parent company Quicken Loans to pay $32.5 million for alleged mortgage fraud. The Justice Department claimed Quicken Loans approved mortgage applications it shouldn’t have. Although Quicken Loans paid the settlement, the company never admitted to mortgage fraud.

Rocket Mortgage FAQ

Is Rocket Mortgage good?

Advertisements

Rocket Mortgage is a good choice if you’re comfortable with an online application process. The company has strong customer service reviews, so you may like it if customer support is a high priority.

What is the downside to Rocket Mortgage?

The lender doesn’t offer certain types of mortgages, including USDA mortgages. It also doesn’t have physical locations, so if you want to walk into a branch to speak with someone in person, you’re better off using a different lender.

Are Rocket Mortgage fees high?

Advertisements

The fees are lower than what many brick-and-mortar lenders charge. Fees often vary depending on your situation, so ask an employee for a complete list of fees.

Is it hard to get a Rocket Mortgage?

Rocket Mortgage’s mortgage approval requirements are average compared to other mortgage lenders. You’ll need at least a 620 credit score, though you may qualify for an FHA loan with a score as low as 580. Rocket Mortgage might not be the best choice for someone with a rocky credit history.

What bank owns Rocket Mortgage?

Advertisements

Rocket Mortgage, formerly known as Quicken Loans, is a part of Rocket Companies. It was founded in 1985 by Dan Gilbert. 

Is Rocket Mortgage a real company?

Yes, Rocket Mortgage is a real mortgage lender that’s licensed to lend in all 50 states.

Methodology

Advertisements

When reviewing mortgage lenders, we look at four main criteria:

Loan types: If a lender offers a variety of different mortgage options, we rate it more favorably. The main types of mortgages we look for are conforming, jumbo, FHA, and VA mortgages. After that, lenders can receive higher ratings for offering less common types of home loans (such as USDA mortgages, renovation loans, or HELOCs). We also look at whether the lender has both fixed- and adjustable-rate mortgages, and the term lengths it offers.Affordability: Does the lender offer lower-cost mortgage options? Does it have flexible credit requirements? Lenders that offer mortgages with features that make them more accessible to those with lower incomes or rocky credit histories earn higher ratings in this category. Lenders that offer multiple government-backed mortgage options are ranked more favorably. We also look at the lender’s minimum down payment and credit score requirements for its loans, and if it accepts non-traditional credit in lieu of a credit score.Customer satisfaction: We look to see if the lender appeared in the most recent J.D. Power US Primary Mortgage Origination Satisfaction Study, which surveys mortgage borrowers to gauge their satisfaction with their lender. We look at whether it ranked above or below the industry average for customer satisfaction. If the lender wasn’t included in the survey, we look at online customer reviews.Trustworthiness: We look at a lender’s Better Business Bureau rating to evaluate its trustworthiness. If it earned a rating below an A+, we’ll look at the BBB’s reasons for that. We also take into account any public controversies the lender has had in the last three years.

Read the original article on Business Insider

Read More

Advertisements
Subscribe
Notify of
guest
0 Comments
Most Voted
Newest Oldest
Inline Feedbacks
View all comments