Rocket Mortgage Review 2020

Rocket Mortgage’s rates

ProductInterest RateAPR
30-year fixed rate3.250%3.695%
15-year fixed rate2.375%2.852%
10-year fixed rate2.375%3.046%

While it may seem like Quicken Loans and Rocket Mortgage are the same thing, they’re actually meant for two different purposes. Rocket Mortgage is the online mortgage lending arm that’s offered by Quicken Loans, and it allows you to complete the mortgage process fully online. Borrowers can apply for a mortgage and get approved — all without ever having to speak to another person. While Quicken Loans still provides the option to speak to a mortgage adviser, Rocket Mortgage is a lightning fast way to go through the mortgage process in digital format.

Why it might pique your interest

Rocket Mortgage allows borrowers to determine what type of loans and the loan amounts they’re eligible for within minutes. It’s a process that happens through Quicken Loans, not a separate lender. Your application will allow you to see which loans and interest rates you’ll be eligible for through Quicken Loans. Rocket Mortgage favors convenience over everything, and it’s especially unique because borrowers don’t even have to use a computer to apply — just a smartphone.

With the convenience and casual nature of the Rocket Mortgage process, it’s important to remember that Rocket does a hard credit pull to determine your creditworthiness — even for preapproval. Borrowers will need at least a 620 credit score to qualify for lower rates through Quicken, though it does offer plenty of mortgage options fit for first-time buyers and applicants with lower incomes. Additionally, Rocket Mortgage is also available for refinancing with the same speedy online process.

Rocket Mortgage overview

Loan types:

  • Fixed-rate
  • Adjustable-rate
  • Jumbo loans
  • FHA, VA, USDA
  • YOURgage

Pros and cons

Pros

  • Borrowers can quickly apply online without having to speak to a lending adviser
  • Rocket Mortgage is mobile-friendly
  • Offers a fast-tracked process compared to traditional mortgage lending

Cons

  • Despite marketed as easy and casual, it’s still a serious process requiring a hard credit pull — even for preapproval
  • There’s no way to gauge the interest rates you’ll qualify for or credit score ranges before you commit to applying
  • Borrowers miss out on individualized attention and advice from a real person

The final word

Mobile users looking for a quick and easy way to start the mortgage process are the ideal Rocket Mortgage borrower. You can skip the never-ending hold music or lengthy meetings when choosing Rocket, but the self-service aspect means sacrificing the face-to-face attention of the traditional mortgage process. Rocket Mortgage is a great way to get familiar with the Quicken Loans mortgage and refinance offerings if you’re on a deadline or want to DIY your mortgage experience. However, if you don’t have at least a 620 credit score, it may be hard to find worthwhile rates through Rocket. With little information provided upfront, borrowers will have to commit to Rocket’s application to find personalized results.

FAQs

Is Rocket Mortgage good to use?

Rocket Mortgage is a smart choice for some people, but it will ultimately depend on your needs and your financial situation. Rocket Mortgage offers an entirely online application experience, and some people prefer to work with a professional in person during the mortgage lending process.

Plus, while Rocket Mortgage offers low APRs, some of its competitors offer lower average rates. Still, you might be able to get approved with a lower credit score than is required by some of the other national mortgage lenders.

There are plenty of reasons to consider Rocket Mortgage, though, including the fact that Quicken Loans, the company at the helm of Rocket Mortgage, has held the highest customer satisfaction rating for 10 years in a row, according to J.D. Power.

You can get preapproved for a mortgage loan with Rocket Mortgage in as little as eight minutes and there are plenty of choices for personalizing your loan. The entire process will be faster and easier than with most traditional banks if you choose this online lender.

That said, if you’re looking for in-person assistance, Rocket Mortgage will not be the best choice for you.

Does Rocket Mortgage pay closing costs?

No, Rocket Mortgage does not pay closing costs. You will have to pay closing costs in one form or another if you opt for a loan with this lender. However, Rocket Mortgage may offer a no closing cost mortgage to certain eligible borrowers. You’ll still pay clothing costs with this option, but they’ll be added to your monthly payments so that you won’t have to pay the full cost upfront.

Will Rocket Mortgage hurt my credit?

You can complete the prequalification process for free with a soft credit pull with this lender and it won’t impact your credit score. However, getting approved for a Rocket Mortgage home loan will require a hard credit inquiry, which will cause a temporary dip in your credit score. Typically, the inquiry will only decrease your score by an average of 5 to 10 points, and you’ll see your credit recover in a few months.

Be aware, though, that your credit will be pulled by any lender you work with, sometimes more than once, as a hard pull is required in order to approve you for a mortgage loan.

Rayna Perry

Personal Finance Copywriter

Rayna Perry is a Personal Finance Copywriter at Interest.com and a Public Relations major at the University of Georgia. When not writing about personal finance, she is usually watching a great movie or creating a new playlist.