Rocket Mortgage

Rocket Mortgage is recommended for tech-savvy borrowers who value convenience and speed in the mortgage process. Borrowers can apply for a mortgage, upload documents and track their application progress from any device, which makes buying a new home convenient even in your busy season. Rocket Mortgage is recommended for someone who wants to quickly compare rates and terms from multiple lenders.

Those who prefer personalized service or face-to-face interaction with loan officers may not enjoy working with Rocket Mortgage since there are no physical branches. Additionally, if you are looking for a construction loan or need a home equity line of credit (HELOC), a different mortgage company will be a better fit.

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Rocket Mortgage scored excellent in several areas, including rates, application process and requirements. Many reviewers felt they were getting the best rate and the fast, online application process made buying a home easier.

Reviewers did have issues with Rocket Mortgage’s costs and fees and many felt blindsided by these costs. We rated the lender low for that aspect because Rocket Mortgage should publish closing costs on its site and have transparent closing costs listed at the beginning of the process. Buyers who do not know the costs until the end feel stuck because they just want to finish the homebuying hurdle and get the keys.

Rocket Mortgage publishes its current mortgage rates for conventional, FHA, VA and jumbo loans on its website. This rate information is generally updated daily, but for the most accurate rates based on your individual situation, you should contact Rocket Mortgage for a customized quote.

Disclosures from Rocket Mortgage indicate that its rates for 30-year fixed-rate mortgages ranged from 2.625% to 6.375% in 2021, averaging 2.93% overall — lower than the national average. For reference, the national average across that period was 2.96%, according to Freddie Mac.

Many reviewers said they got a good rate on either their home purchase or refinance. While the market plays a huge role in what current rates are, one Virginia customer felt they got a good deal: “Times were looking bleak with the market noticed looking great and rates going up. But Rocket came through and had the lowest rate I could get for a 30yr fixed.”

Mortgage rates change frequently and vary based on your loan term, credit history and mortgage type. Also, keep in mind the differences between an interest rate and an annual percentage rate (APR):

• An interest rate is what you pay back on top of the funds you receive, expressed as a percentage. It doesn’t include additional fees.
• An APR includes these charges, so it tends to better reflect the true cost of the loan.

Rocket Mortgage offers loans with fixed rates as well as loans with adjustable rates. Both can be good choices, depending on your financial situation:

• Fixed-rate loans are often a better option when interest rates are low since you can lock in a good rate for your entire loan term.
• Adjustable-rate mortgages may be more attractive when mortgage rates are high because they can save you money initially. However, after a few years, your rate will begin to adjust based on a predetermined index, which may raise your monthly payment.

Rocket Mortgage average home purchase rate vs. national average

Rocket Mortgage’s application can be completed 100% online. You can start the preapproval process by answering a few short questions and authorizing the lender to conduct a credit check. Be prepared to provide information about your income and assets; Rocket Mortgage uses these details to determine how much you can borrow.

To complete the approval process, you upload financial documentation (like W-2s and bank statements) to Rocket Mortgage’s online loan portal. Within the portal, you can also view an application checklist to see what else you’ll need to submit.

The ease of the application process was a highlight in many of our customer reviews. Some common words were “easy,” “straightforward,” and “fast.”

This Nevada reviewer said, “From start to finish in my home mortgage application process, we were treated with courtesy and respect by all of the Rocket Mortgage team. It was almost effortless and it was a real pleasure having them handle a normally stressful procedure.”

Rocket Mortgage services most of the loans it originates (with the exception of jumbo loans), so it’s possible you’ll work with exclusively Rocket Mortgage until your loan is paid off or you decide to sell.

Rocket Mortgage application features

Rocket Mortgage offers a variety of mortgage products, including conventional loans, government-backed loans (like FHA and VA loans) and refinance loans.

We rated Rocket Mortgage as good for loan types because it does not offer construction loans or HELOCs. When this Kansas homeowner refinanced, the existing HELOC on their home was automatically closed despite getting mixed answers from Rocket Mortgage and the original HELOC company.

Overall, in 2021, individuals initiated 264,613 home purchase loans with Rocket Mortgage. The company ultimately closed 193,308 purchase loans that year, meaning 73% of loans requested came to fruition. The same year 26,144 applications (almost 10%) were denied, and there were 930 denied preapprovals.

Loan applications for home purchases only by year

Rocket Mortgage usually adheres to the standard qualifications for both conventional and government-backed loans. Conventional loans typically require a higher credit score and down payment than you need for a government-backed mortgage, but individual cases may differ.

Rocket Mortgage recommends that all borrowers have a debt-to-income ratio below 45% and a credit score of 620 or higher, but there are some exceptions:

• VA and FHA loans are available with a credit score as low as 580.
• Jumbo loans require a credit score of 680 or higher.
• Conventional loans are available for borrowers with debt-to-income ratios as high as 50%.

It’s worth pointing out that government guidelines for FHA loans technically allow for credit scores as low as 500 (with a higher down payment), but Rocket Mortgage only uses the stricter credit limit required for 3.5% down payments.

We rated Rocket Mortgage as excellent for requirements because our many reviewers agreed it was easy to qualify for a new loan or refinance. According to 2021 data, over 70% of individuals who requested a loan were able to get one through the lender.

“They made it easy for me to get my loan quickly and successfully close without any issues, also their high-tech approach by allowing customers to manage requirements via the dashboard is amazing,” said one reviewer.

Another reviewer with a fair credit score was impressed that they could qualify for a refinance with Rocket Mortgage: “They didn't automatically disqualify me or put me on the back burner or last on the service list. They treated me like I had the best credit ever.”

Much like other mortgage lenders, Rocket Mortgage charges an origination fee, but this fee can vary. You can expect to pay between 0.5% and 1% of the loan amount in origination charges as part of your closing costs. Overall, Rocket Mortgage recommends that you plan to spend between 3% and 6% of your loan amount in closing costs on top of your down payment.

We gave Rocket Mortgage a poor rating for cost and fees because many reviewers were put off by the lack of fee transparency and the high costs tacked on at the end of the loan process.

One reviewer applied for a refinance and was happy with the initial loan estimate, however, the actual refinance cost them more than expected: “When it came to the actual loan process there was an additional $5,000.00 added to the loan estimate. On a $240,000.00 loan. An extra 2.1%. I was already facing higher fees due to my credit rating.”

Another reviewer said, “I would give 5 stars, but it seems like there were hidden fees in my loan.”

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