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Rocket Mortgage Review
Rocket Mortgage at a glance
|APR Range||2.746% to 3.482%|
|Available products||Fixed-rate loansVA loansFHA loansJumbo loans|
|Term lengths||15 or 30 year|
|Applicable fees||Origination fee, closing costs|
|Best for…||People who want an online mortgage process|
|Not for…||People who want a more personal touch or to talk to a loan servicer in person|
What we like about Rocket Mortgage
Top-rated customer satisfaction
In the 2020 Primary Mortgage Servicer Satisfaction Survey, J.D. Power ranked Quicken Loans as the top-ranked lender for overall customer satisfaction. Rankings were based on communications, customer interaction, billing, payment process, escrow account administration, and new customer orientation.
Entirely online mortgage process
Unlike many traditional mortgage lenders, Rocket Mortgage’s process takes place entirely online, from the initial application to closing. In most cases, the entire operation can take place without having to talk directly to a customer service representative. For those who prefer to speak with a real person, Rocket Mortgage offers that as well.
Offers FHA and VA loans
For people dealing with unique circumstances, Rocket Mortgage has two government-backed home loan options available:
- FHA loan: Insured by the Federal Housing Administration (FHA), these loans are available to low-to-moderate income individuals who may not qualify for or meet the down payment requirements of a traditional mortgage.
- VA loan: Backed by the Department of Veterans Affairs, these home loans allow military veterans to get a mortgage at a competitive interest rate with no down payment.
Things to consider
No option for in-person service for those who want it
Many borrowers still prefer the service that comes with sitting across the desk from your loan servicer and talking through the process in person. If you’re the type of person who needs a personal touch, Rocket Mortgage may not be a great fit.
Higher rates than some competitors
When we compared Rocket Mortgage’s rates to some other mortgage lenders, we found that the company’s rates were not quite as competitive.
No adjustable-rate mortgages
Unlike many other home loan lenders, Rocket Mortgage doesn’t currently offer adjustable-rate mortgages. While the majority of homebuyers don’t use this type of loan, some borrowers may prefer the adjustable rates or low intro rates you get from an ARM loan.
Rocket Mortgage vs. the competition
Reali is an online lender that’s newer to the mortgage scene. This lender has been around since 2015 and has served just over 1,000 borrowers so far. Reali offers both purchase and refinance loans. Unfortunately, this lender is less transparent than Rocket Mortgage about its rates — you’ll have to get a personalized quote to find out more about Reali’s rates.
When comparing the two companies, Rocket Mortgage appears to be the more reliable choice. This lender has a longer track record than Reali, along with its highly-rated customer satisfaction from J.D. Power.
Reali does have some good things going for it, however. The lender claims to have some of the fastest mortgage processing available. If you need to get a mortgage ASAP, this lender might be the right choice. The company also waives many of the fees that other lenders have, which could make their loans more affordable.
Founded in 2011, Sofi has become one of the top companies in online lending, with more than 1 million customers served. The company started in the student loan business but began offering mortgages in 2014.
In terms of available products, both SoFi and Rocket Mortgage have some advantages. SoFi offers conventional mortgages in 10, 15, 20, and 30-year terms. Rocket Mortgage only offers 15 and 30-year options. On the other hand, Rocket Mortgage offers government-backed loans such as FHA and VA mortgages, which SoFi doesn’t.
The two companies are quite comparable when it comes to interest rates. The APR on a SoFi 30-year fixed-rate mortgage is roughly 3.418%, while the comparable Rocket Mortgage rate is 2.971%. Rocket Mortgage also has the edge when it comes to down payment requirements. It requires just 3% down, while SoFi requires 10%.
AmeriSave is an online lender that’s been around since 2002. The company currently does business in 49 states.
AmeriSave is a solid alternative for anyone who would prefer an online mortgage experience but wants a lower rate than they can get from Rocket Mortgage. A 30-year fixed-rate mortgage from Rocket Mortgage has APRs as low as 2.971%. The same loan from AmeriSave has APRs starting at 2.367%.
AmeriSave wasn’t on the list for the 2020 J.D. Power customer satisfaction survey, though, so it’s hard to know how the customer service compares. But if customer service is the top priority for you, then Rocket Mortgage is an easy choice since it’s the top pick of the J.D. Power ratings.
How much will a Rocket Mortgage loan cost?
Rocket Mortgage doesn’t disclose all of its fees on its website, so it’s impossible to know without applying for a mortgage exactly how much it will cost you. Costs you can expect to incur include:
- Origination fee
- Appraisal fee
- Home insurance
- Mortgage insurance
- Property taxes
- Upfront interest payments
- Third-party closing costs
[ Read: Best Online Lenders of 2020 ]
Cheaper alternatives to Rocket Mortgage
Rocket Mortgage is one of the top lenders on the market, with a streamlined online process and top-rated customer satisfaction. But if savings is your top priority, you can likely find a lender with lower interest rates. AmeriSave, which we discussed above, has more competitive rates than Rocket Mortgage. If you’d prefer a more traditional lender rather than an online one, major banks such as Wells Fargo also offer more competitive rates. At the time of writing this article, Wells Fargo offers APRs starting at 2.715% for a 30-year fixed-rate loan.
Rocket Mortgage in the news
- Rocket Companies, the parent company of Rocket Mortgage, went public for the first time in August 2020. The company raised 1.8 billion in its IPO.
- In the fall of 2020, Rocket Mortgage and the real estate company Realtor.com announced a partnership. As of October, homebuyers on Realtor.com can get preapproved with Rocket Mortgage in as little as 20 minutes.