May 16, 2021

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Rocket Mortgage 2021 Review — Largest Lender in the US

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Rocket Mortgage Overview

Rocket Mortgage is the online mortgage loan website for Quicken Loans, the largest mortgage lender in the US. It has been the top customer satisfaction lender for 11 years according to JD Power. We rated it as one of the best Online mortgage lender due to its highly rated customer service and easy online application process. The Detroit-based lender is licensed in all 50 states and the District of Columbia.

Rocket Mortgage offers a wide range of purchase loans and mortgage refinancing loans, including government-secured mortgages. However, it does not offer building loans, Home equity loansor home renovation loan.

Advantages and disadvantages of the rocket mortgage

  • Optimized end-to-end remote application process
  • Licensed in 50 states and the District of Columbia
  • Provides mortgage with standard loan terms and the flexible YOURgage®that has a loan term of 8 to 29 years
  • Advertising competitive Mortgage rates, but include the prices quoted Discount pointswhich can significantly increase your upfront costs
  • Not ideal for niche loans like home equity loans, reverse mortgages and loans USDA loan

advantages

  • Fast and easy pre-approval process

  • Completely remote application and approval process

  • Loans in 50 states and Washington DC

  • Wide range of loan options: Conventional, VA loan and FHA loan

disadvantage

  • No physical locations

  • You will need to call or chat with a representative for information about the loan

  • No construction loans or renovation loans

  • Prices shown may include discount points that add to your upfront cost

Rocket Mortgage: Loan Types and Products

Rocket Mortgage offers a range of loan options for those looking to buy a home and for homeowners looking to refinance an existing mortgage. At the moment it offers the following types of mortgages:

Rocket Mortgage gives you access to most types of mortgage refinancing loans, including standard rate and term refinancing Disbursement Refinancing Loans. It also offers government-secured loans for refinancing, such as: VA refinancing loan to cut interest rates (IRRRL) and FHA Streamlines Refinance Loans.

Currently, Rocket Mortgage does not offer any USDA loans, construction loans, or adjustable rate mortgages (ARM). Also, you cannot obtain any type of home loan, home loan, or home equity line of credit through Rocket Mortgage. So it is not the best lender for funding a rehab project unless a disbursement refinancing makes sense for you.

Rocket Mortgage offers conventional loans with terms of 15 and 30 years. It also has a unique loan product called YOURgage® that has a flexible repayment period of 8 to 29 years. The IHR baggage has a minimum deposit of 3%, a credit score requirement of 620, and your debt-to-income ratio (DTI) can be 50% or less.

Rocket Mortgage: Transparency

Rocket Mortgage has an easy to navigate website with a straightforward application process and you can get pre-approved in just minutes. It has a number of tools to help you find out how much home ownership you can afford, as well as a number of guides that explain loan types and terms.

The Rocket Mortgage website does not make it clear what types of loans are offered or what the minimum credit requirements are for different mortgages. The FAQ lists some types of loans and their requirements, but there is not a complete public list of all the loans on offer. So you’ll need to call or chat with a representative to answer important questions.

Rocket Mortgage: Rates and Fees

Rocket Mortgage offers daily refinance and purchase rates on 15 year loans, 30 year loans, VA loans, and FHA loans. These interest rates can change daily and are based on some assumptions, e.g. For example, your credit score is higher than 720 and your debt-to-income ratio is below 30%. Hence, not everyone can qualify for the lowest prices.

Also, pay attention to the fees and the annual interest rate, as the prices shown may include discount points. A discount point or Mortgage pointis an optional upfront fee that you pay in exchange for a lower interest rate. Typically, a discount point costs 1% of the loan balance and reduces your interest rate by 0.25%. So if you want to avoid paying the additional fees, you will likely get a higher mortgage rate than advertised.

The minimum credit rating required by Rocket Mortgage varies depending on the type of loan. Most loans, such as B. Conventional loans and VA loans require a minimum score of 620. For FHA loans, your credit score can only be 580. While these are the minimum scores you need to qualify, only those with the highest credit scores will qualify for the best mortgage rates.

Rocket Mortgage has no application fees or prepayment penalties on any of its loans. There may be late fees that vary based on the late payment. You must submit an application for a full breakdown of closing costs, including lender fees and rebate points.

You can lock your interest for 45 days, and Rocket Mortgage can extend the lock for an additional 15 days at no charge. However, a $ 500 deposit is required to cover the rating and tariff lock. This deposit can then be offset against future loan costs.

Rocket mortgage refinancing

Rocket Mortgage offers a good selection of refinancing loans, from conventional to federally supported loans. The average refinancing loan takes 30 to 45 days from start to finish.

The fees you pay for the refinancing usually average 2% to 3% of the loan amount. However, the specific fees you pay will depend on factors such as the type of loan. You cannot get a quote until you submit an application. However, if you want to avoid the extra up-front costs, Rocket Mortgage can include your refinance closing costs in your new home loan if you have enough equity.

Rocket mortgage compared to other mortgage lenders

Rocket mortgage Better.com SoFI
Minimum credit score 580 to 620 620 660
Minimum deposit 0% to 3.5% 3% 5%
States in which it operates 50 43 42
Loan Types Offered Conventional Loans, Jumbo Loans, VA Loans, FHA Loans Conventional Loans, Jumbo Loans Conventional Loans

How To Shop Around To Get The Best Mortgage Rate

The mortgage rate and fees you qualify for vary from lender to lender. Hence, it is important to look around and Find the best mortgage lender to you.

In order to accurately compare quotes, you need to submit applications to some lenders. Publicly advertised rates may not necessarily be what you qualify for, and without a full application form, a lender will not be able to provide you with an estimate of the fees. Compare two to four lenders who offer the types of loan products you are interested in.

When you’ve submitted your applications, each lender will give you one Credit estimate. A credit estimate is a standardized form so it’s easy to find the lender with the lowest mortgage rate. But you shouldn’t stop there, fees are just as important. Pay attention to the lender fees or origination fees and ask what each fee is for and whether or not it is negotiable. Two loans can have the same interest rate, but one can have significantly higher upfront fees.

Bottom line

Rocket Mortgage is the online mortgage website from Quicken Loans, the country’s largest mortgage lender. It has an easy to navigate website and a smooth application process. Rocket Mortgage customer service is rated highly. You will receive answers to questions about your existing application or a new loan seven days a week via the online chat function and the telephone lines.

Prices listed may include discount points and you will need pristine financial information to qualify for them. There is also no exhaustive list of all loan offers available online. So you need to reach out to a Rocket Mortgage agent to answer some of your questions. And you’ll still want to look for the best deal.