Rocket Mortgage Review 2023

How Bankrate scored Rocket Mortgage

To determine Rocket Mortgage’s Bankrate Score, Bankrate’s editorial team rated it and other lenders on a scale of one to five stars based on a variety of factors relating to the lender’s products and services. (Bankrate’s partners compensate us, but our opinions are our own, and partner relationships do not influence our reviews.) We derived its overall score by considering three basic factors:

• Affordability: Rocket Mortgage’s rates consistently run above Bankrate’s averages, and you’ll pay some lender fees for a loan.
• Availability: Rocket works with borrowers nationwide, and it recently added home equity loans to its product mix.
• Borrower experience: J.D. Power gives the lender its highest marks for customer satisfaction, in part thanks to its pioneering all-digital mortgage process.

• Methodology

  Bankrate's expert editorial team gathers mortgage lender information through a variety of means, including direct contact with lenders, regulatory filings and assessments by reputable third parties. Our research takes into account three main factors: affordability, availability and borrower experience.

  Bankrate's mortgage reporters and editors have decades of experience covering the mortgage industry. Based on the three main criteria, our team evaluated more than 85 lenders, assigning each a Bankrate Score out of five stars. Here's how we assess each factor:

  • Affordability: Loan cost is a deciding factor for many borrowers. We look at two metrics: 1) the lender's lowest advertised annual percentage rate (APR) based on Bankrate's sample scenario, which assumes a 740 or higher credit score and a 20 percent down payment, among other factors; and 2) established customer discounts or incentive pricing, when applicable.
  • Availability: What loan programs does the lender offer, and how quickly will your application be approved and processed? We evaluate lenders for loan timelines and diversity of mortgage products.
  • Borrower experience: Finally, we delve into what it's like to deal with the lender as a consumer, including the lender's application process and availability of customer service support..

  Bankrate's methodology page spells out our rating process in greater detail.

  Our editorial team confirms the accuracy of data at the time of publication and is dedicated to maintaining the timeliness of information.

Affordability: 4/5

Affordability differs from lender to lender, so comparing costs is key.

Rocket Mortgage isn’t the cheapest option for getting a mortgage. The lender’s advertised rates are often higher than Bankrate’s national averages, and borrowers do pay lender charges, such as origination and rate-lock fees.

Availability: 5/5

This factor can make the overall mortgage application process smoother or more challenging.

Rocket Mortgage lends in every state in the country, and has a wide range of loan options that can serve just about every type of borrower. Plus, the lender accepts credit scores as low as 580 for FHA loans and VA loans, so those with subpar credit who are otherwise eligible for a loan could still qualify. The lender also offers the Fresh Start program to pair borrowers who need help improving their credit with financial consultants. The program is free and available by calling 800-769-6133.

Borrower experience: 4.9/5

Know what to expect when you work with a specific lender.

While Rocket Mortgage does have its share of customer complaints, the lender is still the frontrunner for customer satisfaction in the mortgage industry, according to J.D. Power. The lender is also the gold standard as far as experience. If you have a regular job, every part of the mortgage application process can happen online (if you’re self-employed, you’ll need to connect with a human at some point). The lender has a mobile app that allows you to get preapproved, upload documents and e-sign from your phone. If you want additional assistance, the lender offers customer assistance via online chat seven days a week.

How to apply for a mortgage with Rocket Mortgage

You can apply for a purchase loan or refinance on Rocket’s website or via the lender’s app. Here are some tips to prepare for the process:

1. Check your credit report. It’s important to check your credit report before your lender does, in case there are errors that could impact not only whether you get preapproved but also your ability to get the best mortgage rate. Knowing your credit score also helps you decide what type of loan to apply for. If your score is in the very low 600s, for instance, an FHA mortgage might be best for you, as its standards are more lenient than those for conventional loans.
2. Gather personal and financial documents. With any lender, you must supply documentation about your income, assets and debts. This includes pay stubs and W-2s and account and loan statements.
3. Provide details about the property. You’ll need to provide the address of the home and submit to an appraisal. (If you’re refinancing, you might or might not need an appraisal.)

Refinancing with Rocket Mortgage

Rocket Mortgage can help you refinance your current mortgage. As you consider refinancing, think about your goals: Are you refinancing to adjust your rate and term? Do you want to tap your home’s equity? Do you want to change loan programs, such as refinancing out of an FHA loan into a conventional mortgage? Once you’ve settled on those details, you can apply for a refinance through the Rocket website or app.

Special programs offered by Rocket Mortgage

Rocket Rewards

Rocket Mortgage has taken a page from the likes of Starbucks and American Airlines with its Rocket Rewards program, which allows homebuyers to earn points by completing various activities on the lender’s website, including watching videos, reading articles about homeownership and using a mortgage calculator. You can then redeem the points for savings when closing your Rocket loan.

Inflation Buster

Inflation Buster is a temporary rate buy-down that lowers your mortgage interest rate by a percentage point for the first year of the loan. Say you borrow $400,000 for 30 years with an interest rate of 6.5 percent. Your principal and interest would be $2,528 a month. With the rate buy-down, your rate drops to 5.5 percent for 12 months, and your payment falls to $2,271. That means savings of $257 a month and more than $3,000 over the first year of the mortgage. Rocket’s deal is limited to purchase loans (refinances aren’t eligible), but it’s available on conventional, FHA and VA mortgages.

ONE+

When taking out a conventional loan, you’re required to put down at least 3 percent. If you’re eligible, Rocket’s ONE+ program lowers that minimum to just 1 percent, covering the remaining 2 percent through a grant. The program also covers private mortgage insurance (PMI) at no cost.

Rocket credit card

Rocket Mortgage has unveiled a new credit card that allows homebuyers to earn up to $8,000 towards closing costs and a down payment. The Rocket Visa Signature Card offers a generous 5 percent back on all purchases, up to the limit, with the catch that the rewards are worth full value only if you ultimately get your home loan from Rocket Mortgage. That can discourage you from shopping around for a mortgage, a practice that could save you thousands over the life of your loan.

Frequently asked questions about Rocket Mortgage

Who owns Rocket Mortgage?

Rocket Mortgage is owned by Rocket Companies, a publicly traded company formerly known as Quicken Loans LLC. The three largest owners of Rocket Mortgage Class A common stock are the institutional investors Invesco, Caledonia Investments and Vanguard Group, according to Rocket’s 2022 proxy.

What is the difference between an online mortgage lender and a traditional bank?

Rocket pioneered the concept of online loan applications and digitized paperwork, and it has stuck to that business model. Rocket — and the digital lenders that followed it — has no brick-and-mortar offices: If you want to speak to a loan officer, you’ll do so by phone.