Rocket Mortgage, formerly known as Quicken Loans, is a renowned online mortgage lender that offers a wide variety of loan options to borrowers. In this comprehensive review, we will delve into the key features, customer satisfaction ratings, loan types, ease of application, rates and fees, and rate transparency of Rocket Mortgage. Whether you’re a first-time homebuyer or looking to refinance your mortgage, this article will provide you with all the essential information you need to make an informed decision.
Key Features of Rocket Mortgage
Rocket Mortgage stands out with its user-friendly online platform and seamless application process. It offers an extensive range of loan options, including conventional loans, government-backed FHA and VA loans, and customizable fixed-rate conventional loans. Additionally, Rocket Mortgage provides home equity loans and cash-out refinancing options for borrowers looking to leverage their home equity.
Rocket Mortgage is also affiliated with Rocket Homes, a sister company that helps connect homebuyers and sellers with real estate agents. This integration makes the home-buying process more convenient and streamlined for borrowers.
Customer Satisfaction Ratings
To gauge borrowers’ experiences with Rocket Mortgage, we turn to customer satisfaction ratings from reputable sources. In J.D. Power’s 2022 U.S. Mortgage Origination Satisfaction Study, Rocket Mortgage received a score of 750 out of 1,000, surpassing the industry average of 716. This study measures customer satisfaction from the initial application to the closing of the mortgage.
In J.D. Power’s 2022 U.S. Mortgage Servicer Satisfaction Study, Rocket Mortgage received a score of 672 out of 1,000, outperforming the industry average of 607. This study focuses on customer satisfaction with mortgage servicing, which involves handling loan payments.
Furthermore, on Zillow, Rocket Mortgage holds an impressive customer rating of 4.48 out of 5, based on over 7,900 customer reviews. These ratings reflect the positive experiences of borrowers who have chosen Rocket Mortgage for their home financing needs.
Variety of Loan Types
Rocket Mortgage offers a diverse range of loan options to cater to the unique needs of borrowers. Whether you’re looking for a conventional loan, FHA loan, VA loan, or jumbo loan, Rocket Mortgage has you covered. Their lineup of loan types is on par with other nonbank lenders in the industry.
For borrowers seeking a conventional loan, Rocket Mortgage provides the choice of fixed or adjustable rates. They also offer a customizable fixed-rate conventional loan with a term ranging from eight to 29 years, in addition to the standard 15- and 30-year mortgages.
Notably, Rocket Mortgage was the largest FHA lender in the nation in 2021, with a significant number of FHA loans granted compared to other lenders in the market. This highlights their expertise and commitment to serving borrowers who qualify for government-backed loans.
Ease of Application
Rocket Mortgage distinguishes itself with its user-friendly application process, which can be completed through their website or mobile app. The platform is fully optimized for mobile devices, allowing borrowers to apply anytime and anywhere.
The application process begins with creating an account and answering basic questions, such as the ZIP code of the desired property. If you prefer a more personalized experience, Rocket Mortgage also offers the option to work with a mortgage broker affiliated with their platform.
Once you’ve selected your loan, Rocket Mortgage verifies your qualifications and submits your application to an automated underwriting system. Throughout the underwriting process, you can conveniently manage outstanding tasks, upload documents, e-sign paperwork, and track the progress of your loan via your Rocket account.
Rates and Fees
When considering a mortgage, it is crucial to evaluate both the interest rates and fees associated with the loan. Rocket Mortgage’s performance in this regard is mixed.
In terms of average origination fees, Rocket Mortgage receives a rating of 2 out of 5 stars. While their fees are not the most competitive, they are still comparable to other lenders in the market.
On the other hand, Rocket Mortgage earns a rating of 4 out of 5 stars for its average mortgage interest rates. This indicates that their interest rates are generally competitive and favorable for borrowers.
It is essential to strike a balance between lender fees and mortgage rates to ensure you secure the most advantageous financing terms. While upfront fees might lower your interest rate, it is crucial to consider the overall cost of the loan.
Rate Transparency
Rocket Mortgage provides a reasonable level of rate transparency to borrowers. On their rates page, you can find sample rates for fixed-rate purchase and refinance loans, including 30-year fixed-rate home loans, 30-year FHA loans, 30-year VA loans, and jumbo loans. These sample rates give you a general idea of the rates and APRs available.
To view personalized rates tailored to your specific situation, you will need to initiate the online application process. However, keep in mind that even the pre-qualified approval process involves a hard credit inquiry, so it is advisable to be serious about considering Rocket Mortgage before proceeding with the application.
It is important to note that the rates displayed on the website are subject to certain assumptions made by Rocket Mortgage. Ensure you review the legal disclosures associated with the rates to gain a comprehensive understanding of the terms and conditions.
Alternatives to Rocket Mortgage
While Rocket Mortgage offers a range of features and benefits, it is always prudent to consider alternative lenders to ensure you find the best fit for your mortgage needs. Here are two comparable lenders to consider:
Better
Better is a digital mortgage lender that offers a similar online experience to Rocket Mortgage. It provides a quick and easy application process, making it an attractive option for first-time homebuyers. Better differentiates itself by not charging lender fees at closing, making it a cost-effective choice for borrowers.
Freedom Mortgage
Freedom Mortgage, the second-largest FHA lender in the nation, offers government-backed loans similar to Rocket Mortgage. They provide a wide range of loan options, including FHA, VA, and USDA loans. If you require specialized loan programs or have unique financing needs, Freedom Mortgage may be a suitable alternative to consider.
Conclusion
In conclusion, Rocket Mortgage is a leading online mortgage lender that offers a user-friendly platform, a wide variety of loan options, and competitive interest rates. With high customer satisfaction ratings and a seamless application process, Rocket Mortgage provides a reliable and convenient solution for borrowers.
However, it is essential to carefully consider the rates and fees associated with the loan, as well as explore alternatives to ensure you find the best mortgage lender that aligns with your specific needs and preferences. By conducting thorough research and evaluating multiple lenders, you can make an informed decision and secure the most favorable terms for your home financing journey.
