Quicken Loans Mortgage Review

Quicken Loans Mortgage Review

Established in 1985, Quicken Loans more commonly known as Rocket Mortgage is a Detroit-based company that claims to offer you the best financial products through a fully online experience. The company offers some of the best loan options, including FHA loans, fixed-rate mortgages, and VA home loans.

The lender, however, does not offer USDA loans and home equity lines of credit and does not provide in-person services. All the services offered are available online.

About Quicken Loans

Perfect for online loan shopping and known for its streamlined application process, Quicken Loans is an online lender offering services like VA home loans, FHA loans, fixed-rate mortgage, adjustable-rate mortgage, jumbo loans, etc.

The lender officially changed its name to Rocket Mortgage in July 2021.

To take advantage of their services, you would need to access their website or app. You can share all documents online. To get started, you would need the following documents-

  • Income information
  • Employer information
  • Social security number
  • Banking details

The rates offered by the lender depend upon the type of product you are choosing and your credit history, as well as various other factors including your income, credit score, and loan term. Moreover, while the lender offers discounts, you can only access them with a minimum credit score of 720 and less than a 30% debt-to-income ratio. In addition to this, the lock-in period offered by Rocket Mortgage is 15 to 60 days.

Quicken Loans Home Loan Types and Rates

Rocket Mortgage offers several loan options ranging from fixed-rate mortgages to FHA and VA loans. The lender also provides refinancing options to help you refinance your existing loans for even lower interest rates.

Here are some of the most well-known loan options provided by Quicken Loans-

30 Year Fixed Rate Mortgage

Rocket Mortgage’s 30-year fixed-rate mortgage is offered at 3.375% with an APR of 3.646%. In addition to providing highly competitive interest rates, the lender also ensures a streamlined application process through its digital features.

Moreover, with a 30-year loan term, your monthly installments would not make a dent in your monthly expenditure. Besides, the loan comes with a fixed interest rate. Meaning, the interest rate would remain constant throughout the loan term. This would help you save on your finances and keep your monthly budget planned and sorted.

15 Year Fixed Rate Mortgage

If your major priority is saving on interest rates and getting rid of the loan as soon as possible, Rocket Mortgage’s 15-year fixed-rate mortgage can be a great choice.

This loan is available at an interest rate of 2.875% with an APR of 3.301%. Compared to a 30-year loan term, a 15-year loan comes with lower interest rates. Moreover, you would be liable to the lender for only 15 years, rather than 30-years.

In addition to this, this loan is available at a fixed rate, which would make your monthly installments constant throughout the loan term.

FHA

If having a lower credit score poses a hurdle to purchasing your dream property, you can reap the benefits of Rocket’s FHA loans. Available on a credit score of 580 or higher, Federal Housing Administration loans by Quicken Mortgage are available at an interest rate of 3.125% with an APR of 4.106%.

These loans are available at a 30-year fixed-rate plan. The loan would be for 30 years and come with a fixed interest rate. Moreover, you would need to make a downpayment of at least 3.5% to qualify for the loan.

Adjustable-Rate Mortgage

Rocket Mortgage’s adjustable-rate mortgage is a home loan with a fluctuating interest rate. The interest rate tends to remain for the first few years. The rate later increases or decreases, depending upon the market situation, after 5, 7, or 10 years. However, the rate won’t increase more than 5% of the original rate. This mortgage is a great option for someone who isn’t planning to stay for a long time in the house.

Rocket Mortgage offers the following types of ARMs-

  • 7/6 ARM, where the interest rate remains constant for the first seven years.
  • 10/6 ARM, where the interest rate remains constant for the first ten years.
  • 5/6 ARM, where the interest rate remains constant for the first five years.

The interest rate offered for 7/6 ARM is 5/1/5 and 2/1/5 for 5/6 ARM.

YOURgage

As the name suggests, YOURgage is a customizable mortgage offered by Rocket Mortgage. You can choose the loan term from 8 to 29 years. The interest rate offered on this loan would be a fixed rate, meaning the monthly installments would remain constant throughout the term of the loan.

To get started with this loan, you would need to make a minimum downpayment of 3% and would require the following things-

  • A debt-to-income ratio of less than 50%
  • Enough funds for loan closing
  • A minimum credit score of 620

VA Loan

VA loans are home loan programs backed by the US Department of Veterans Affairs (VA). These loans were established to help struggling military members purchase their dream home without worrying about making a downpayment.

Related:Qualifying For A VA Home Loan

VA loans are available at 0% downpayment and significantly lower interest rates. Besides this, unlike a conventional loan, you don’t have to worry about paying for the Private Mortgage Insurance (PMI).

The rate offered by Rocket Mortgage for VA loans is 3.375%, with an APR of 3.748%.

Related Article: Can Veterans Build a New Home With a Va Construction Loan?

Jumbo Loans

Jumbo loans are non-conforming loans that exceed the limit defined by the Federal Housing Finance Agency (FHFA). The limits vary from state to state. In most states, the limit is $548,250 for a single-family house. Any loan more than the limit will be considered a jumbo loan.

Rocket Mortgage’s official website claims to offer jumbo loans of up to $2.5 million. These loans come with a guarantee of streamlined paperwork and eligibility without paying PMI.

Quicken Loans mortgage rates for a 30-year fixed-rate mortgage for loan amount $500,000 would be 3.625%, with an APR of 3.853%.

FHA Streamline Refinance

Federal Housing Administration (FHA) streamline refinance loans allows you to refinance an existing loan for lower interest rates. This can help you reduce your monthly installments and save up to hundreds.

In addition to lowering your monthly installments, it comes with a smooth application process and does not require a home appraisal.

Quicken Loan refinance rates for a 30-year fixed-rate mortgage with a loan amount of $200,000 would be 3.25%, with an APR of 4.55%.

Related Article: What Is the Native American Direct Loan (NADL) Program?

Pros and Cons of Quicken Loans

Pros of Rocket Mortgage-

  • They offer the best online services, featuring a convenient and streamlined application process.
  • It helps you pre-qualify for a loan amount within minutes of entering the information.
  • The site allows you to edit your pre-qualification letter.

Cons of Rocket Mortgage-

  • Rocket Mortgage does not offer home equity lines of credit.
  • To get a customized interest rate, your credit scores would be accessed, affecting your credit score. 
  • The lender’s fee is high.

Quicken Loans Mortgage Application Process

When it comes to purchasing a new house or refinancing an existing loan, Rocket Mortgage claims to offer the most streamlined application process. Here are the steps followed by the lender-

Apply for the Loan Online

To get started, you must select the type of loan you want. In case you are stuck, you can take the help of home loan experts, who can guide you into choosing the right type of loan.

Explore Your Options

You can use features like online rate calculators to explore your loan options.

Verify Your Information

The lender will then verify the information provided by you to assess your credibility and eligibility status.

Loan Closing

You can schedule the loan closing online. Rocket Mortgage’s one-of-a-kind loan application process ensures that the loan underwriting is carried out as soon as possible and according to your convenience.

Related Article: How Do I Get a Va Certificate of Eligibility?

Quicken Loans Refinancing

Rocket Mortgage’s website states the many benefits you can reap once you opt for their refinancing options. Among the many listed benefits, some of them are reduced monthly installments, no home loan appraisal requirement, shorter mortgage term, and streamlined process.

You can access their refinancing calculator by clicking here.

Quicken Loans Alternatives

Here are some of the alternatives of Rocket Mortgage you can choose from if this lender does not seem right for you.

LendingTree

LendingTree is an online peer-to-peer rate exchange platform that offers services like mortgages, personal loans, auto loans, and student loans. However, it is not BBB accredited and was rated as A- by BBB.

Bank of America

Available nationwide, Bank of America offers mortgage facilities with a starting credit score of 620. Moreover, unlike most lenders, the bank offers a home equity line of credit.

Freedom Mortgage

Established in 1990 and available in all 50 states, Freedom Mortgage was named no. 1 for VA home and FHA loans. The lender offers a wide selection of loans ranging from adjustable-rate mortgages to fixed-rate and refinancing options.

Quicken Loans Transparency

When it comes to transparency, Rocket Mortgage has been ranked number 1 compared to its competitors. The website provides a wide range of information, including interest rates and application procedures.

Bottom Line

Quicken Loans, also known as Rocket Mortgage, offers top-notch online services and has an easy-to-follow, efficient application process that allows you to apply (and potentially prequalify) within just a few minutes. While it does not offer home equity lines of credit and has a fairly high lender’s fee, Quicken loan rates and procedures are very transparent. Take a closer look at their website to learn more!

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