Rocket Mortgage Review For 2021
Rocket Mortgage is one of the best-known lenders in the nation. And with a wide range of loan products and a full suite of online tools, this mortgage company is definitely worth a closer look.
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- True end-to-end online mortgage experience
- Quicker and easier mortgage process than most lenders offer
- Lots of options for customizing your loan
- Highly rated customer service
- Rates are not always competitive
- No branches for in-person interactions
- No home equity loans or HELOCs
- No USDA loans
Whats The Process For Getting A Mortgage With Quicken Loans
You can apply for a mortgage with Quicken Loans online or over the phone. Youll be matched with a Home Loan Expert who will guide you through the mortgage process. After your credit score is pulled, youll get a loan estimate via the sites loan portal, MyQL.
To continue the mortgage process, youll need to submit a deposit which covers costs incurred to process your credit report, appraisal and title work. When you close on a house, this deposit is credited against your total closing costs. Quicken Loans says that the amount of this deposit varies between $400 and $750. Your Quicken Loans Home Loan Expert will let you know what you owe. You can use credit, debit, pre-paid Visa or MasterCard gift cards to pay the deposit, but not checks, money orders or cash.
You can also get a credit toward your closing cost by opting for a higher interest rate when you get a mortgage from Quicken Loans. Quicken Loans calls this option the Closing Cost Cutter. If a lack of ready cash is your problem and you want to reduce your closing costs, the Closing Cost Cutter may be an appealing option. However, its important to understand that opting for a higher interest rates means youll have a higher monthly payment and pay more interest over the term of the mortgage.
Quicken Loans Mortgage Services Expands Its Broker Push
Whats next when you already have the top consumer-facing company in the industry? When your commercials air during every nationally televised basketball game?
If youre Quicken Loans, you forge new ways to expand your reach and services.
Quicken Loans Mortgage Services has been around for nine years, but recently has been powering up efforts to grow its number of broker and regional partners. In the past three months, they have added 1,000 new partners. After starting 2019 with 3,000 partners, they expect to grow to more than 5,000 by the end of the year.
David Schroeder is the senior vice president of QLMS leading the charge. During a recent conversation with Mortgage Media, he covered a lot of ground, sharing how Quicken Loans has been able to extend its reach in the broker market so quickly, the challenges it faces in building the B2B relationships and how its manages a huge increase in volume.
Quicken Loans Broker Push
Schroeder points to the success that Quicken Loans has had with its retail side, and being able to use that same power thats been so instrumental in our success, and putting it in the broker-bank-credit union hands for their clients.
Schroeder laid out how the growth has scaled remarkably easily, in part because of Quicken Loans existing workforce, and its ability to reroute workflows to support the channel.
Quicken Loans Three-Pronged Approach
The first bucket of homebuyers, Schroeder says, does everything digitally.
Traditional Mortgages
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Quicken Loans Mortgage Rates
- They advertise their interest rates directly on their website
- Rates are updated daily and you dont need to be registered to view them
- Quickens rates appear to be competitive but consider loan assumptions
- Such as lender fees and max LTV ratios for advertised rates
Now lets talk mortgage rates, which are always an important factor when comparing mortgage lenders.
Fortunately, Quicken openly advertises their mortgage rates on their website. The page where their rates are found is updated daily.
They list a conventional 30-year fixed, an FHA 30-year fixed, VA 30-year fixed, 15-year fixed, and 5/1 ARM.
While their rates appear to be low and competitive, its important to take a look at the rate assumptions, which mostly call for a loan-to-value ratio of less than 75% and require nearly two mortgage points be paid.
In other words, pay attention to more than just the interest rate look at the APR of the loan, which will likely be significantly higher.
And be sure to see how much Quicken Loans charges for closing costs.
All that said, its hard to know how competitive their loan rates are if you dont pay a ton of points at closing, or if you have a much higher LTV ratio.
So be sure to compare Quicken to other lenders, considering both the rate and closing costs.
Entertainment And Performing Arts
Major theaters in Detroit include the , , the , , the , the , , , the , and , which hosts the renowned . The , the largest controller of Broadway productions in New York City, originated with the purchase of the in 1922 by the Nederlander family.
with 535,000 square feet produces movies in Detroit and the surrounding area based at the Pontiac Centerpoint Business Campus for a film industry expected to employ over 4,000 people in the metro area.
Because of its , , and , Detroit has enjoyed increased prominence as a tourist destination in recent years. listed Detroit as the 9th-best destination in its list of 52 Places to Go in 2017, while travel guide publisher named Detroit the second-best city in the world to visit in 2018.
Many of the area’s prominent museums are in the historic neighborhood around and the . These museums include the , the , , the , as well as the main branch of the . Other cultural highlights include , the museum, the studio and school, the Museum, , the Dossin Great Lakes Museum, the , the Contemporary Art Institute of Detroit , and the Belle Isle Conservatory.
Artist Tyree Guyton created the controversial street art exhibit known as the in 1986, using found objects including cars, clothing and shoes found in the neighborhood near and on Heidelberg Street on the near East Side of Detroit.
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Quicken Loans Mortgage Refinancing Review
Good if:
- Youre looking to refinance a jumbo loan
- You want to lower the rate on an FHA loan
- You want a non-standard repayment term
An online lender like Quicken Loans can be a good choice if youre looking to refinance your mortgage. Since you already have a mortgage, you know something about how the process works.
Quicken Loans offers a broad range of refinancing options, including cash-out refinances, FHA Streamline Refinances, and jumbo loan refinances. All Quicken refinance products result in a new first mortgage. The lender doesnt offer home equity loans or lines of credit.
Quicken Loans Calls Itself Americas Largest Mortgage Lender
- They originated the most home loans via the retail channel in the fourth quarter of 2017
- Finally surpassing Wells Fargo for loan volume over an entire quarter
- Quicken is a nonbank direct-to-consumer lender with no physical branches
- They also run a wholesale mortgage division called QLMS
In the fourth quarter of 2017, Quicken Loans hailed itself the nations largest residential mortgage lender, beating out roughly 30,000 other commercial banks, savings and loans, mortgage bankers, credit unions, and mortgage brokers.
While they didnt surpass Wells Fargo for the entire year, they narrowly beat them for the quarter with $25 billion in total volume versus $23 billion for Wells Fargo.
However, that didnt include the correspondent lending channel, for which Wells originated an additional $30 billion.
In reality, their $83 billion in home loans in 2018 was well short of the $177 billion originated by Wells Fargo.
And while they blew away prior years with $145 billion in total loan volume for 2019, it still paled in comparison to Wells $204 billion.
Still, it represented a 75% year-over-year increase, which was well above their old record of $96 billion originated back in 2016.
To their credit, they originate a greater number of home loans, its just that the loan amounts are smaller vs. Wells Fargo, and thus volume is lower.
That initiative was launched in November 2015, with a controversial Super Bowl ad to follow that subsequent January.
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Quicken Loans Pros And Cons
Pros
- Large jumbo loans available. Find nonconforming jumbo loans up to $2 million in fixed- or adjustable-rate terms.
- Flexible repayments. Pay off your loan early without prepayment penalties.
- Online loan support. Monitor the progress of your application with MyQL and access the support seven days a week by phone and live chat.
- Fast turnaround. Most borrowers close their home loans with Quicken Loans within 30 days.
- Award-winning customer service. This lender has won awards for being highest in customer satisfaction from J.D. Power for the last 11 years.
Cons
- Application deposit. Youll need to put down a deposit to apply, and the deposit goes towards closing costs if you seal the deal on your new home loan.
- Two-step process. Unlike fully online mortgage lenders, you have to speak with a representative to get your loan details completed.
- Hard credit pulls. Some homebuyers were surprised to see a credit check show up on their credit report before they expected it or gave authorization.
Variety Of Loan Types
Better and Quicken Loans offer similar loan types.
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Compared to Quicken Loans, and many other lenders in the online mortgage industry, Better.com doesnt offer very many loan type options, which could be a drawback for some consumers.
Both Better and Quicken Loans offer refinancing, but neither company offers a home equity loan product or home equity line of credit option. If you would like the option to get cash from your home equity, you will need to look into other mortgage lender options.
Overall, for a wider variety of loan types, we would recommend Quicken Loans.
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Other Businesses And Investments
Gilbert is a founding partner in private equity group LLC . The partnership invests in growing businesses in the financial services, Internet technology, consumer-direct marketing, and the sports and entertainment industries.
RBE has significant investments in ,, and , among other ventures.
Gilbert is also an investor in Courtside Ventures, a venture capital fund investing across early-stage technology and media companies with a focus on sports and is a founding partner of Detroit Venture Partners , a venture capital firm that funds start-up and early-stage technology companies based primarily in . Some of the companies DVP has invested in includes LevelEleven, iRule and Marxent Labs.
Gilbert cofounded StockX, a stock market of things for high-demand, limited edition products such as sneakers. Gilbert is also invested and involved in the operation of several consumer-based technology-centered businesses, including , , , and .
Gilbert launched nonprofit in 2007, which promotes both tech and brick-and-mortar entrepreneurship in Detroit and Cleveland by supporting on-the-ground service providers.
In November 2009, Gilbert and a group of partners successfully backed a statewide referendum to bring gaming to ‘s four largest cities. Through a joint venture with , the groups operate urban-based casinos in both and . The first of the casinos, , opened in May 2012.
Quicken Loans At A Glance
Quicken Loans with its groundbreaking digital application experience, Rocket Mortgage ranks among the nation’s leading-volume lenders, despite not having a single branch office. Quicken offers a robust variety of mortgage options, but its rates and fees tend to be higher than the national median, as reported in Home Mortgage Disclosure Act data.
Here’s a breakdown of Quicken Loans’ overall score:
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Variety of loan types: 4 of 5 stars
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Variety of loan products: 5 of 5 stars
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Online convenience: 5 of 5 stars
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Rates and fees: 2.5 of 5 stars
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Rate transparency: 4 of 5 stars
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What Is The Difference Between A Nonbank Lender An Online Lender And A Traditional Bank
A nonbank lender or an online lender are both terms used to describe financial institutions that offer limited services, such as personal loans or mortgages, and typically do not offer deposit services, such as checking or savings accounts. A traditional bank, in contrast, offers a spectrum of financial products for their customers. Traditional banks also have branch locations where customers can apply for loans in person. Sometimes traditional banks will have mortgage discounts for existing customers.
Because online or nonbank lenders focus on loans, they usually develop high-tech solutions to speed up approval times and streamline application processes, which can save borrowers time and money. Additionally, because they dont have the overhead expenses of branch locations, they can pass those savings on to customers in the form of lower interest rates.
Nonbank lenders are the largest originators of mortgages today.
What To Expect When Working With A Mortgage Broker
From start to finish, brokers can walk you through the process of applying for a loan:
- If you are shopping around, it can take some time to apply with different lenders. A mortgage broker is likely more familiar with how different lenders handle mortgage applications and may be able to help speed the process up.
- Once youve selected a lender, a broker can also act on your behalf to handle the back-and-forth conversations with the lender.
- When its time to close on your loan, your broker will work with you, your lender and your real estate agent to make sure you close your loan smoothly and on time.
If you decide to work with a mortgage broker, its important to know youre working with an ethical, experienced broker. Just like contractors, plumbers, attorneys or other independent businesses, there are knowledgeable brokers who will work hard to get you the best loan possible, while others may not offer a consistent or efficient service.
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A Strong Track Record
Quicken markets itself as a more convenient alternative to traditional lenders. Rocket Mortgage is certainly a big part of that. You not only get faster approval, but also access to an online portal that lets you get in touch with a lending expert, check the status of your loan, and view information about the closing.
Do homeowners have to sacrifice service when working with a banker in another part of the country? According to most industry sources, the answer is decidedly “no.” In 2018, J.D. Power, which ranks mortgage originators based on customer satisfaction, awarded Quicken Loans its top spot for the ninth consecutive year. The company also receives 4.5 stars out of 5 on real estate site Zillow.
Quicken Loans Officially The Biggest Mortgage Lender In The Country
Back in early 2018, Quicken Loans proclaimed it was the largest mortgage lender in the country, thanks to a solid fourth quarter in 2017.
It managed to originate $25 billion in home loans, beating out its long-time rival Wells Fargo by about $2 billion.
However, there was a caveat: it only counted retail loan origination volume. Wells Fargo does a ton of correspondent mortgage lending as well, whereby its product is resold by other banks.
When taken together, the San Francisco-based bank was still the king, and by quite a large margin. But that has finally changed.
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What Does Your Credit Score Have To Be For Quicken Loans
- Minimum credit score for conventional financing is 620
- Lowest FICO score for FHA financing is 580
- USDA loans require a 640+ FICO score
- VA loans require a score of 620 and higher
It depends on the type of home loan in question, but theyre fairly conservative relative to other mortgage companies. Remember, they like to originate vanilla loans.
When it comes to conventional loans, those backed by Fannie Mae or Freddie Mac, you need a 620 FICO score. Thats the industry minimum, so no surprise there.
For FHA loans, you need a minimum 580 FICO score, which is well above the 500 floor. But the FHA requires a score of 580 and higher for their signature 3.5% down loan program.
Similarly, the VA doesnt impose a minimum credit score, but Quicken requires a median score of 620+.
Quicken Loans Mortgage Types And Products
Quicken Loans offers a full nonbank selection of fixed- and adjustable-rate home loans, mortgage refinancing and jumbo loans for higher-priced homes.
What is the nonbank distinction? Like nearly all non-depository lenders, Quicken Loans doesn’t offer home equity loans or lines of credit. Since it doesn’t have the capital from bank deposits to fund mortgages, nonbank lenders sell loans to investors. The largest investors in the industry government-sponsored enterprises Fannie Mae and Freddie Mac don’t buy home equity loan products.
Quicken is the by far the largest lender in the nation for mortgages backed by the Federal Housing Administration, with more than twice the FHA loan volume of its nearest competitor. It also provides VA loans guaranteed by the Department of Veterans Affairs.
Quicken’s YOURGage product allows you to choose a fixed-rate loan term the length of the mortgage payback from eight to 29 years. That helps you fine-tune your monthly payment and have a bit more flexibility than the standard 15- and 30-year terms.
While Quicken Loans doesn’t offer reverse mortgages, an affiliated company, One Reverse Mortgage, does. Reverse mortgages are typically used by older homeowners to tap the equity in their house for retirement expenses.
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