Review
Updated
At one time, Quicken Loans called their digital platform, "Rocket Mortgage." Rocket Mortgage took off so dramatically that it didn't take long for the names Quicken Loans and Rocket Mortgage to be used interchangeably. Finally, saying that "Rocket" was the word that best described the services it offers, Quicken Loan officially changed its name to Rocket Mortgage.
Rocket Mortgage has a lot to offer. Competitive mortgage rates, award-winning customer service, and a fully digital experience are a few of the features this lender is known for. You can't get every type of home loan from Rocket Mortgage, but if they offer a home loan that meets your needs, you stand a good chance of having a great experience.
2023 Award Winner
Best for: Loan options and online application
Rating image, 5.0 out of 5 stars.
5.0/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Rocket Mortgage, originally known as Quicken Loans, led the transition to a full digital experience and online-only applications. Its seamless process is one reason why it has become the largest U.S. lender. It is consistently ranked No. 1 on J.D. Power’s customer service rankings and has a robust and high-quality app that makes it easy to use.
Min. Credit Score Minimum Credit Score 580 FHA 620 other mortgage products
- 580 - 680
Min. Down Payment Minimum Down Payment 0%-3.5% (FHA & VA loans) 3% (conventional loans)
- 0% - 3.5%
Key Features
- Online-only
- High allowable debt-to-income
- Low down payment options
- Opportunities to get cash towards closing
- High customer satisfaction ratings
Loan Types
- Conventional
- FHA
- VA
- Jumbo
Fixed Rate Terms
- Customizable (8 -30 years)
Adjustable Rate Terms
- 10/6, 7/6
Full Rocket Mortgage review
This mortgage lender is a good fit for: Rocket Mortgage is great for home buyers who are comfortable conducting business online. The Rocket Mortgage digital application is the industry benchmark and its app makes the application process a cinch while on the go.
Pros
- Top-rated customer satisfaction
- High quality app
- Low down payment options
- 90-day rate lock
- Services its loans
Cons
- No physical branches
- Limited low down payment eligibility
- No USDA loan
Top perks
No. 1 in customer satisfaction
Rocket Mortgage is on fire when it comes to customer service. It ranks No. 1 in two J.D. Power customer satisfaction surveys -- mortgage origination and mortgage servicing. It held the top position in the mortgage origination survey for 11 consecutive years and grabbed the No. 1 mortgage servicer prize for eight years. In 2021, Rocket Mortgage came in second place in J.D. Power's customer satisfaction survey, losing out to Guild Mortgage by only 8 out of 1,000 points.
Online application process
Rocket Mortgage was a pioneer in online mortgage application technology. Its home loan process is entirely online, up to closing. In the Rocket Mortgage app, you can share information automatically by linking your asset accounts. Rocket Mortgage says that some borrowers can even sign all closing documents remotely. Whether you will have to sign in the physical presence of a notary will depend on your state's laws and other factors.
Mobile app
Rocket's home-buying app is a standout among mortgage lenders. You can begin your application via the app, upload documents, and manage payments, among other feature-rich capabilities. Rocket's app excellence is corroborated by its consistently high app ratings.
- iOS app rating: 4.9/5 stars
- Android app rating: 4.8/5 stars
Low down payment options
If you qualify for an FHA or VA loan, you can get a mortgage with a low down payment or no down payment. Rocket Mortgage also offers several affordable loan programs, including Freddie Mac's Home Possible? mortgage.
High allowable DTI
Rocket Mortgage offers loans that allow a debt-to-income ratio, or DTI, of 57% and higher in some cases. Some loans have a lower limit, however. Most lenders consider a DTI under 36% to be excellent. If your DTI is on the high side (over 44%), you might still qualify for a mortgage. Your application may need to be stronger in other areas, though. For example, you may need to make a larger down payment or have a higher credit score.
Customizable loan term
Mortgage loan terms don't have to be 15 or 30 years, though those are common. Rocket Mortgage allows the borrower to set a term of any number of years between eight and 30.
90-day rate lock
Rocket Mortgage offers RateShield? Approval, which combines mortgage pre-approval with a rate lock. On a 30-year conventional, FHA, or VA fixed-rate purchase loan, applicants are pre-approved once the information has been verified by an underwriter. The interest rate is then locked for up to 90 days. The mortgage rate lock has a float-down feature, which means that if interest rates fall, you'll get the lower rate. If interest rates rise, your rate remains locked in at the lower level.
Lender and servicer in one
Many lenders sell their mortgages after the loans close. When you pay your bill, you're suddenly dealing with a different company than the one you worked with to get the loan. But Rocket Mortgage services nearly all of the loans it makes.
What could be improved
No physical branches
You cannot do business in person with Rocket Mortgage. It is a strictly online process. Live humans are available to assist, but you won't be able to talk face to face.
Limited low down payment eligibility
If you don't qualify for an FHA or VA loan, you'll probably need to come up with a down payment. Rocket Mortgage does offer the Home Possible? mortgage to borrowers with low and moderate incomes. You might qualify for down payment assistance, but those programs are not administered by Rocket Mortgage. Also, Rocket Mortgage does not offer a low down payment mortgage without private mortgage insurance (PMI).
No USDA loan
Currently, Rocket Mortgage does not offer this loan type.
Alternatives to consider
If you want to avoid origination fees and find a competitive rate: Better offers home loans with no origination fees and highly competitive rates. The lender guarantees it can offer the lowest-cost loan and will beat a competing offer by $100 or give you $100 if they can't.
If you want to avoid PMI: PNC Bank could be a good option if you want to make a down payment of less than 20% but also don't want to get saddled with a PMI premium to pay each month. For buyers who are low on cash, the PNC Community Loan allows a down payment of 3% and has no PMI requirement. There's also PNC's 80-10-10 loan which requires a down payment of 10.1% and has no PMI requirement.
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PNC Mortgage
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| Rating |
Rating image, 4.5 out of 5 stars.
4.5/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
Rating image, 4.0 out of 5 stars.
4.0/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
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How to qualify
Before you apply, do your best to clean up your credit report and score. You can apply for an FHA loan through Rocket Mortgage with a score as low as 580, but this loan typically costs more than other loans. With a score of 620 or higher, you can apply for a conventional loan and possibly qualify for a lower rate. The lowest advertised mortgage interest rates will be offered to the most well-qualified applicants. You'll need an excellent credit score to get the best deal.
Next, look at your debt-to-income ratio. Your DTI is the sum of your required minimum monthly debt payments divided by your total gross income. Most mortgage lenders want to see this number under 43%, but Rocket Mortgage offers some loans to applicants with a DTI of 57% (and higher in some cases). If your DTI is in that range, you'll need to make a stronger showing in other areas of the application. In other words, you'll probably need a larger down payment or higher credit score.
Once you're ready to apply for pre-approval or for a mortgage, you'll find Rocket Mortgage's platform easy to use. In addition to bank account balances, you will need to provide income and employer information, and your Social Security number. Rocket Mortgage can connect with your financial institutions and grab the documents automatically, or you can submit them by fax or email.
How are Rocket Mortgage's refinance rates?
Refinance rates at Rocket Mortgage tend to be average for the industry or a little high. FHA loan and VA loan borrowers pay lower rates than conventional borrowers, with small differences in cost resulting from differences in fees.
How are Rocket Mortgage's rates compared to the national average?
Rocket Mortgage rates trend about the same or a little higher than the national average. The day we checked, Rocket Mortgage's advertised rate on a 30-year fixed-rate mortgage was just 7/10ths higher than Freddie Mac's published national average rate. But you might pay more at Rocket Mortgage to get its lowest rate.
Nationally, mortgage lenders charge an average of 0.7 mortgage discount points for the lowest rate, according to data from Freddie Mac. Rocket Mortgage charges more than two points. The cost of one point equals 1% of your loan amount. So if you wanted to borrow $200,000, two points would cost $4,000. If you're comparing total loan costs, the number you want to look at when you compare loans is the APR or annual percentage rate. That number will be a little higher than the interest rate and reflects the true cost of the loan.
Rocket Mortgage is right for you if:
If customer service is the most important factor in a transaction for you, Rocket Mortgage might be a great fit. Similarly, if you don't want another company to service your loan in the future, take a closer look at Rocket Mortgage.
Rocket Mortgage should also be on your shortlist if you're devoted to conducting your business entirely online (or haven't been inside a physical bank branch in years). This platform is tailored to the needs and expectations of today's online buyer. The application process is easy, speedy, device-friendly, and the gold standard to which other online mortgage applications tend to be compared.
FAQs
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The lowest advertised rate at Rocket Mortgage is on par with the national average. But when we checked, Rocket Mortgage's fee for the lowest rate was higher than average.
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Yes. One nice thing about Rocket Mortgage is that it consistently gets very high marks for customer service. The No. 1 ranking, in fact, in some large surveys. It also happens to be one of the largest mortgage providers. In light of its competitive rates and excellent service, Rocket Mortgage is definitely worth your consideration.
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Yes. Rocket Mortgage fees are a little lower for refinance mortgages than purchase mortgages, so the overall cost of the loan is lower.
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Rocket Mortgage offers loans with different requirements to meet the needs of most borrowers. If your credit score is in the 500-620 range, you might qualify for an FHA loan from Rocket Mortgage. For a conventional mortgage, you'll need a 620. For Rocket Mortgage's lowest rate, you'll need a higher credit score. Rocket Mortgage will also look at your debt-to-income ratio and the amount of cash you have for a down payment and reserves.
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Rocket Mortgage offers a variety of purchase and refinance home mortgage loans:
- Conventional
- FHA
- FHA Streamline
- VA
- Fixed-rate mortgage
- Adjustable-rate mortgage
- Jumbo loan
- Home equity loans
Our Mortgages Expert
Kimberly is a career writer and editor with more than 30 years' experience. She's a bankruptcy survivor, small business owner, and homeschool parent. In addition to writing for The Motley Fool, she offers content strategy to financial technology startups, owns and manages a 350-writer content agency, and offers pro-bono financial counseling.
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