Rocket Mortgage is the biggest mortgage lender in the U.S. Formerly known as Quicken Loans, it is headquartered in Detroit, along with operating mortgage origination offices in Cleveland, Ohio and Phoenix, Arizona. Rocket Mortgage lends to borrowers in all 50 states and Washington, D.C. In 2022, it launched its first home equity loan product.
Rocket Mortgage snapshot
| Home equity loan types | Home equity loan |
| Loan amounts | $45,000 to $350,000 |
| Credit score minimum | 680 |
| Repayment terms | 10 years and 20 years |
Benefits
- Outstanding customer service: While home equity loans are a new product for Rocket Mortgage, the lender’s track record with its other home loan offerings indicates that borrowers loved their experience. The lender scored well above the industry average for customer satisfaction with mortgage origination in J.D. Power’s most recent survey, and it was well ahead of every other lender in terms of customer satisfaction for mortgage servicing.
- Online application process: Rocket Mortgage is known for its convenient loan application process, which you can complete via mobile app, and the lender offers online approvals.
- Funding flexibility: If you qualify, you could get up to $350,000 with a home equity loan.
Drawbacks
- Limited repayment terms: Some other lenders offer a wider range of repayment terms, such as five years to 30 years. Rocket Mortgage’s 10- and 20-year options don’t allow for as much flexibility.
- No HELOCs: While Rocket Mortgage offers home equity loans, you’re out of luck if you think a home equity line of credit (HELOC) can be a better fit for your needs.
- No rate information online: You won’t find the lender’s current home equity loan rates or closing costs on the Rocket Mortgage website.
Types of fees charged
It’s unclear what fees are associated with Rocket Mortgage’s home equity loans at this time. Many home equity loans come with at least some fees and closing costs (origination fee, appraisal fee, title fee and discount points), so when comparing home equity offers, be sure to ask what costs you’ll need to pay.
Loan products offered
Rocket Mortgage offers fixed-rate home equity loans between $45,000 and $350,000 with two repayment terms: 10 years and 20 years. You can borrow up to a combined loan-to-value (CLTV ratio) of 90 percent (between your first mortgage and the home equity loan).
How to qualify for a home equity loan with Rocket Mortgage
Rocket Mortgage requires a median credit score of at least 680 for home equity loans. If you and your partner or spouse are both listed on the loan application, the lower of your credit scores will dictate your eligibility and borrowing terms. You’ll also need a debt-to-income (DTI) ratio that doesn’t exceed 45 percent. You’re allowed one late payment on your primary mortgage in the last 12 months to still be eligible for a home equity loan. The outstanding amount on your primary mortgage and the amount you borrow with a home equity loan cannot exceed 90 percent of your home’s value.
How to get started
To learn more about Rocket Mortgage’s home equity loans, you can complete an application online, contact a loan officer by phone at 833-326-6018 or reach out via the lender’s online chat tool, available Monday to Friday from 7 a.m. to midnight Eastern time and Saturday and Sunday from 8 a.m. to midnight Eastern time.
Be sure to explore other home equity lenders for quotes, too. The path to the best deal always involves comparison-shopping to see which lender can offer a mix of low fees, competitive rates and flexible repayment terms.
How Bankrate rates Rocket Mortgage
| Bankrate Score | 3.8 | Scoring factors |
|---|---|---|
| Availability | 3.2 | Higher loan amounts but limited information regarding approval and closing times |
| Affordability | 3.8 | Rates and fees undisclosed |
| Customer experience | 4.5 | Easy online application and superior customer service |
Methodology
To create our Bankrate Scores, we evaluated lenders based on availability, affordability and customer experience. Availability was assessed based on the minimum loan amount required, time to approval, days to close, minimum draw requirements, minimum credit score requirements and loan types offered. Affordability was assessed based on minimum APR, discounts and promotions offered and associated fees. Customer experience was assessed based on online application and account availability, customer support, auto payment availability and mobile app availability and ratings.
Editorial disclosure: All reviews are prepared by Bankrate.com staff. Opinions expressed therein are solely those of the reviewer and have not been reviewed or approved by any advertiser. The information, including rates and fees, presented in the review is accurate as of the date of the review. Check the data at the top of this page and the lender’s website for the most current information.
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