Rocket Mortgage Review

Quicken Loans launched Rocket Mortgage in 2016 and within just two years became the largest mortgage lender in the United States. Rated #1 in customer satisfaction for 10 consecutive years by JD Power, Rocket Mortgage’s low rates and exemplary customer service along with a wide variety of available products have helped millions of individuals become homeowners or refinance their mortgages. Both Quicken Loans and Rocket Mortgage are based out of Detroit, Michigan, but are are completely online experiences and are available in all 50 states. This means that you can enjoy an online experience no matter where you’re located in the nation, which includes the possibility of being approved for a mortgage  in just minutes without ever leaving home.

How Rocket Mortgage stacks up

Pros
  • Easy online application
  • High rate of customer satisfaction
  • 24-hour customer service
Cons
  • No face-to-face option
  • Does not offer home equity loans or HELOCs
  • No additional banking services beyond mortgages and refinancing

What’s Interesting About Rocket Mortgage

Rocket Mortgage is a 100% online mortgage company that allows borrowers to apply for and fund a mortgage without ever having to go to a physical branch. This is a great option for individuals who want the convenience of being able to work through the mortgage process with a flexible schedule on their own time. All you need is a computer or a mobile smartphone in order to apply for a mortgage within minutes.

In addition to its online convenience and flexibility, Rocket Mortgage is owned by Quicken Loans, which has been voted #1 in customer satisfaction by JD Power for 10 consecutive years for primary mortgage origination and #1 for six consecutive years in primary mortgage servicing. With Rocket Mortgage, you get the same rates, customer service and products under Quicken Loans and the process is just completely online instead of partially online and over the phone.

A noteworthy benefit of Rocket Mortgage is it has 24-hour customer service. While the entire application process and funding is online, you can call customer service at any time with questions you may have.

Things to Consider

If you’re the type of borrower who enjoys a face-to-face interaction, Rocket Mortgage may not be the lender for you. Quicken Loans and Rocket Mortgage have no physical branch locations for borrowers to use. This completely negates the option to sit down with someone and work through the application or closing process. If you have any questions during your process, you can either call Quicken Loans, which owns Rocket Mortgage, or chat with an expert online.

Rocket Mortgage also does not offer home equity loans or HELOCs if you are looking to tap into the equity of your home in order to pay for things such as home improvements or debt consolidation. Although these types of loans are considered a second mortgage, they are not an option through Rocket Mortgage.

Although you can tell by its name that Rocket Mortgage is solely a mortgage company, the fact that it does not offer any other types of banking accounts or loans may be a deal breaker to some individuals. If you enjoy having all of your banking accounts and loans with one financial institution, Rocket Mortgage is not the solution, and you will have to set up connections with your primary bank accounts to make payments.

Checking and Savings Accounts

Rocket Mortgage does not offer checking and savings accounts. However, Discover Bank is a great online bank that offers high-yield savings accounts. Discover offers an APY of 1.90% on savings accounts and does not require a minimum balance to open an account. On top of that, you can earn 1% cash back if you also open up a checking account with Discover,  which is one of the only cash-back checking accounts available on the market.

Money Market Accounts

Money market accounts are not offered by Rocket Mortgage, but there are many financial institutions that do offer money market accounts with high dividend rates. These institutions include Capital One, Discover and Ally.

CDs

Another product not offered by Rocket Mortgage is a Certificate of Deposit (CD). These allow you to deposit your funds in an account for a certain number of months or years in order to earn dividends on the funds. While Rocket Mortgage does not have this product, banks that do offer CDs with short or long terms and a high APY include Ally, Capital One, Discover and Alliant Credit Union.

Credit Cards

Rocket Mortgage does not offer credit cards. However, there are plenty of credit cards on the market that allow you to earn rewards like cash back and travel miles, oftentimes with low interest rates if your credit is good. Some of these lenders include Capital One, Discover and Chase.

Personal Loans

Rocket Mortgage does not offer personal loans. However, if you need to obtain a personal loan for any reason, you can get one through multiple other lenders who offer great rates. To get started, you can take a look at some of the options available through Light Stream, SoFi and Upstart.

Mortgage Loans

A wide range of mortgage products can be found with Rocket Mortgage, from fixed and variable rate options to government-insured loans such as FHA or VA loans, typically for 15- or 30-year terms. Unfortunately, Rocket Mortgage does not provide “as low as” rates on their website, and you will either have to call Quicken Loans to get the information or create an account on Rocket Mortgage to obtain a personalized rate quote. However, you can find out what your rate is and how much you’re preapproved for within minutes by using their convenient mobile app.

Mortgage Refinancing

There are multiple reasons you may be looking to refinance your mortgage, whether you want to lower your monthly payment, lower your interest rate or shorten your term. Rocket Mortgage does have a few different options you can choose from in order to refinance your current mortgage. First, it offers a conventional refinance option, which will just replace your current mortgage, hopefully at a lower rate or monthly payment amount. It also offers a cash-out refinance option. This option allows you to refinance your current mortgage while also tapping into your home’s equity. You can borrow more than your mortgage balance in the form of home equity. These extra funds can help you with home improvements, debt consolidation, tuition payments or any other financial needs you may have.

Home Equity Loans and HELOCs

Home equity loans or HELOCs are not offered through Rocket Mortgage. The only option it offers in order to use your home equity is through the cash-out refinance rate. However, if you’ve already paid off your mortgage or aren’t in the market to refinance but you want to use your home equity, there are many other lenders who can assist you with a home equity loan or HELOC. Some lenders offering low interest rates include Bank of America, Chase and SunTrust.

Car Loans

Car loans are not a product that Rocket Mortgage offers, but there are many other lenders who can help you in financing a vehicle. Lenders who make the auto buying process easy and also offer low rates include Capital One, Carvana and Consumer Credit Union.

The Final Word

Rocket Mortgage has made its name as one of the top mortgage lenders in the nation. Still, it’s important to weigh all of the pros and cons to ensure that all of your financial needs are being met. An important step in your homeownership journey is to examine your financial situation and even speak to a professional if you’re unsure about how to start the process.