Rocket Mortgage Review for 2022

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 worth a closer look.

Rocket Mortgage
Minimum down payment3%
Minimum credit score580
Loan Products Offered

Conventional mortgages
Jumbo mortgages
FHA mortgages
VA mortgages
Refinance loans

Best Features

  • True end-to-end online mortgage experience
  • Offers a 90-day rate lock for home buyers
  • Highly rated customer service

Drawbacks

  • No branches for in-person interactions
  • No USDA loans

Overview

Rocket Mortgage was launched in 2015 by Quicken Loans. And as of July 2021, Quicken has merged under the Rocket brand name.

That means both Quicken and Rocket customers will submit mortgage applications through the online Rocket Mortgage platform moving forward. This move shows the company’s dedication to online lending and convenient, digital-first services.

Borrowers seem to like that convenience, too. This Detroit-based mortgage lender consistently gets high marks for its customer service.

In addition, Rocket’s mortgage interest rates are very competitive on average. So if you’re interested in Rocket Mortgage, this company is certainly worth considering.


Rocket Mortgage rates

In 2021 — the most recent data available — Rocket Mortgage rates were slightly lower, on average, than the interest rates of some top competitors.

Average 30-year mortgage rates at major lenders

Rocket MortgagePennyMacWells FargoFreedom Mortgage
Average 30-Year Interest Rate, 202113.00%2.87%3.14%2.66%
Median Total Loan Costs, 2021$4,670$5,870$3,600$3,880
Median Origination Fee, 2021$2,430$1,520$1,330$0

Average rate and fee data are sourced from public records required by the Home Mortgage Disclosure Act (HMDA).

Remember that interest rates vary a lot by customer. Your own rate depends on factors like your credit score, down payment, loan type, and home price.

That means you shouldn’t take average rates (or advertised rates) at face value. Instead, pick three to five lenders you’re interested in and get rate quotes from each one. Then compare the interest rates, closing costs, and other fees you’re offered to see which lender can give you the best deal.

Rocket Mortgage RateShield protection

One benefit of working with Rocket Mortgage is that it offers 90-day rate lock protection through its RateShield program.

Rocket’s RateShield allows home buyers to lock their preapproved interest rate for up to 90 days while they shop for a home. If rates fall during that time, the borrower can drop their rate once. But if rates rise, their rate won’t increase. This can offer additional peace of mind when house-hunting in a rising-rate environment.

Rocket Mortgage review for 2022

Rocket Mortgage describes itself this way: “If you don’t have the patience for banks and want a fast, convenient way to see your mortgage options, you should give Rocket Mortgage a try.”

So, is this all-digital lender really worth it? Its satisfaction scores suggest that current customers don’t have much to complain about.

Of course, we’d only recommend Rocket to those who are comfortable using its online application processes. The lender promises “expert advice when you need it” from its home loan experts. But the whole idea is that the system itself is so well designed that it will gently lead you through the entire loan process experience.

And it helps if you’re a “safe” borrower — meaning Rocket tends to prefer homeowners with a decent credit score and a reasonable debt-to-income ratio (DTI).

Having said that, the website does say this lender will entertain applications from those with scores as low as 580. These borrowers will be directed to FHA loans that require a minimum down payment of 3.5 percent.

You might find lower interest rates elsewhere, but it may be challenging to find such an easy-to-use online mortgage application or higher customer satisfaction ratings. So if those things appeal to you, Rocket Mortgage just might make your shortlist.

Working with Rocket Mortgage

Rocket Mortgage offers rich online and mobile functionality. It provides a secure environment where you can communicate with loan officers, upload documents, monitor your loan information, and access your closing documents all online. In fact, if you really don’t want to talk to another person, you can opt to communicate via its Talk to Us page. But you always have the option to talk to a real-live home loan expert over the phone.

Rocket Mortgage preapproval

Your journey with Rocket Mortgage — or any other lender — should begin with a mortgage preapproval.

A preapproval letter shows real estate agents and home sellers that you’re serious about buying a new home and have financing in place to make an offer. Preapprovals can also confirm your price range by showing how much you could borrow.

Rocket’s preapproval process happens entirely online. You’ll need to provide some financial information, including your social security number, income, assets, and debts, along with supporting documents to verify these numbers. Rocket’s underwriters will verify your personal finances by checking your pay stubs, recent bank statements, and credit score.

This company says it can complete the preapproval process in just 24 hours.

Rocket Mortgage eligibility

Rocket Mortgage underwriting guidelines aren’t too different from other mainstream lenders. Your income, assets, credit report, and existing debt repayments will all help determine whether you’d qualify for a mortgage loan. You can expect to need a credit score of at least 620 for a conventional loan and 580 for an FHA or VA mortgage.

Keep in mind that your credit score isn’t everything. The company will also calculate your debt-to-income ratio (DTI), a measure of your ability to repay the loan. Rocket suggests your DTI should not exceed 50 percent.

Rocket will guide you through the process of uploading financial documents including W2s, pay stubs, bank statements, and proof of assets such as IRA balances or other sources of supplemental income.

Qualifying for a home purchase loan is never an exact science. That’s why it’s important to shop around with a variety of lenders, especially if you’re a first-time home buyer.

Rocket Mortgage application process

Unlike other lenders — which may offer an online application but quickly transition you to an in-person or over-the-phone loan officer — Rocket’s process begins and ends online. The company’s website or app will guide you to a specific type of loan by asking a series of questions. Then it can walk you through the loan application and underwriting process.

You can reach out to a home loan expert if needed, but you could also finance your new loan without speaking to anyone at Rocket. Even first-time homeowners who aren’t familiar with the borrowing process should be able to navigate Rocket’s digital loan application.

Rocket Mortgage customer service reviews

Rocket Mortgage may not always offer the lowest rates, but its customer satisfaction is a huge draw for many borrowers. Quicken and Rocket have been near the top of J.D. Power’s U.S. Primary Mortgage Origination Satisfaction Study for many years running.

Customer service at major lenders

CFPB Complaints, 20214Complaints Per 1,000 Mortgages, 20215J.D. Power Satisfaction Score, 20216
Rocket Mortgage3760.24876/1,000
PennyMac1170.20827/1,000
Wells Fargo4880.58832/1,000
Freedom Mortgage2620.35829/1,000

Federal regulators at the Consumer Financial Protection Bureau (CFPB) maintain a public, online database of consumer complaints against mortgage lenders. And in it, borrowers filed over 300 complaints against Rocket Mortgage in 2021. Still, this figure represents a relatively small number of negative experiences compared to the amount of home purchase and home refinance loans it underwrote that year.

Mortgage loan products at Rocket Mortgage

Rocket Mortgage can offer the following loan options:

  • Fixed-rate mortgages (FRMs): Most people choose a 30-year mortgage or 15-year mortgage. But with Rocket’s YOURGage program, you can choose a fixed-rate loan term anywhere from 8 to 30 years
  • Adjustable-rate mortgages (ARMs): These can be more affordable than fixed-rate mortgages at first, but they come with the risk of higher rates later. You can fix your rate for a period of 5, 7, or 10 years, after which it will move up and down with the market
  • FHA loans: Backed by the Federal Housing Administration, FHA loans are great for home buyers with imperfect credit and low down payments (minimum 3.5% of the purchase price). But they come with high monthly mortgage insurance payments
  • VA loans: Eligible service members, veterans, and surviving spouses can buy homes with no down payment, lower credit requirements, and no continuing mortgage insurance payments
  • Jumbo loans: Borrow up to $2.5 million, if Fannie Mae and Freddie Mac’s conforming loan caps are cramping your style

The big things Rocket doesn’t offer are construction loans or USDA-backed loans.

USDA loans help rural home buyers and require no down payment. If you’re interested in this type of mortgage, you’ll need to check out some other lenders.

Refinancing with Rocket Mortgage

Homeowners who’d like to refinance their current loan amount at a lower rate or with a shorter loan term can use any of the products above, assuming they qualify.

There are other good reasons to refinance, too. For example, ARM borrowers may want to refinance into a fixed-rate loan. Or an FHA borrower could refinance into a conventional loan to remove mortgage insurance payments.

Rocket customers can access most major refinance loans, including:

  • FHA Streamline: A refi program designed specifically to help existing FHA homeowners access today’s mortgage rates without much hassle
  • VA IRRRL: This loan can refinance an existing VA loan into a new VA loan at a lower rate with low fees
  • Cash-out refinance: Replace your existing loan with a larger loan and keep the extra cash for home improvements, debt consolidation, or any other needs

Rocket Mortgage FAQ

Does Rocket Mortgage have low rates?

Rocket Mortgage offers competitive home purchase rates and refinance rates on average. But the mortgage rate you qualify for will depend on your personal finances. Borrowers who qualify for low rates will generally have strong credit scores, low debt-to-income ratios, and a healthy down payment.

Does Rocket Mortgage pay closing costs?

Rocket Mortgage typically won’t pay your closing costs. But there are down payment assistance programs (DPAs) and closing cost grants that can provide some help. Additionally, homeowners who are refinancing, may be able to roll closing costs into the loan amount and pay them over the life of the loan. Keep in mind that rolling costs into the loan balance will usually result in paying higher interest rates. Talk to a loan officer to discuss your options.

What kind of loans can you get with Rocket Mortgage?

Rocket Mortgage offers the types of loans one would expect from a non-bank lender, including conventional loans, FHA loans, FHA Streamline Refinance, VA loans, VA Interest Rate Reduction Refinance Loan (VA IRRRL), cash-out refinances, and jumbo loans. However, borrowers are unable to finance a new home purchase with a USDA loan through Rocket.

Is Rocket Mortgage the best lender for you?

Rocket Mortgage is one of the most popular mortgage companies in the U.S. That’s probably because it has stellar customer service reviews and a whole host of great online tools.

In other words, if you want to get a mortgage quickly and easily, Rocket is worth a look.

Just keep in mind that rates from any single company aren’t competitive for everyone. Compare your Loan Estimate from Rocket Mortgage with a few other companies to be sure you’re getting the best possible deal.

Sources:

  1. Average mortgage rates and fees sourced from self-reported data mortgage lenders are required to file under the Home Mortgage Disclosure Act. Rates and fees shown reflect the previous year’s data and may not align with today’s mortgage rates
  2. Monthly principal and interest payments calculated using TheMortgageReports.com mortgage calculator. Payments shown are based on a $200,000 loan amount and assume a “very good” credit score. Property taxes and homeowners insurance are not included. Your own monthly payment will vary
  3. Number of mortgage originations for the previous year sourced from self-reported data mortgage lenders are required to file under the Home Mortgage Disclosure Act
  4. CFPB Complaints reflect the number of mortgage origination or closing-related complaints filed with the Consumer Financial Protection Bureau for the previous year
  5. Complaints per 1000 mortgages reflect the number of official complaints filed against a lender with the CFPB for the previous year, compared to the lender’s total number of mortgage originations for the previous year
  6. JD Power Rating reflects the company’s customer satisfaction score according to JD Power’s most recent Primary Mortgage Origination Satisfaction Study. Survey respondents score their lenders in four areas: application/approval process, communication, loan closing, and loan offerings