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Rocket Mortgage review 2024: An honest review

Hal Bundrick
Updated 12 min read
In this article:

The Yahoo view: An OG in the online mortgage industry, Rocket Mortgage is a good choice for borrowers who appreciate a digital application and loan process — and a 1% down payment option.

Rocket Mortgage has been a massive marketing machine ever since its 2016 Super Bowl "Push Button, Get Mortgage" TV ad launched the online mortgage lender into orbit. It literally changed the way borrowers thought about how to get a home loan.

However, subsequent aggressive promotional campaigns have seen the lender splash down in hot water more than once. Yet, Rocket remains a leading loan volume mortgage lender nearly a decade later.

Yahoo Finance grades lenders in five primary categories that impact a borrower's experience and loan costs. We detail each category's score for Rocket Mortgage below.

Dig deeper: First-time home buyer programs

Rocket Mortgage

Key benefits

  • Offers a 1% down mortgage called One+ that provides a grant of 2% of the home's purchase price toward the down payment, up to $2,000. Maximum benefit is limited to $7,000 on a loan no greater than $350,000. Borrowers must prove the ability to make a 3% down payment and have a credit score of 620 or higher. Income limits apply.

  • Provides up to a $7,500 grant toward the down payment and closing costs for eligible first-time home buyers in 21 U.S. metro areas.

  • Offers a 2-1 temporary buydown program. For example, your mortgage rate is two percentage points lower in the first year and then reduced by one percentage point in the second year. In the third year, your rate returns to the original loan rate for as long as you have the mortgage.

Need to know

  • Incentive programs such as the One+ mortgage will likely increase your interest rate.

  • Rocket Mortgage ranks second in customer satisfaction among home loan lenders, according to the latest J.D. Power Mortgage Origination Satisfaction Study.

  • Rocket also earns high marks in satisfaction for mortgage servicing — the collection of loan payments from borrowers and dispersing the funds to third parties.

Dig deeper: Closing on a house — What to expect and how to prepare

Rocket Mortgage offers these home loans:

  • Conventional loans

  • FHA loans

  • VA loans

  • Purchase mortgages

  • Refinance loans

  • Cash-out refinance loans

  • Fixed-rate mortgages

  • Adjustable-rate home loans

  • Jumbo loans

  • Buydown loans

  • 1% down payment loans

  • Home equity loans

Rocket Mortgage does not offer these home loans:

  • USDA loans

  • Interest-only mortgages

  • Lot loans

  • Construction loans

  • Guest house loans

  • Second home loans

  • Nonqualified mortgages

  • Investment property loans

  • Energy efficient mortgages

  • Renovation loans

  • Bridge loans

  • Manufactured home mortgages

  • Piggy-back loans

  • ITIN mortgages

  • Medical professional loan programs

  • HELOCs

Rocket Mortgage earns our highest affordability rating because of its large variety of loan products.

Rocket Mortgage affordability score: 5 out of 5 stars.

Learn more: Types of mortgage loans

Rocket Mortgage is a major player in FHA lending for first-time home buyers. In fact, it has the highest share of FHA lending in the nation. Rocket ranks so high for customer satisfaction, according to J.D. Power, that it deserves consideration if you are shopping FHA lenders.

Rocket Mortgage also has grants available to buyers in specific metro areas, and if you buy a home using a real estate agent through its affiliated partner Rocket Homes, you can earn closing costs credit up to $10,000.

Read more: See Yahoo Finance's list of the best FHA lenders

The longer mortgage rates stay elevated, the more popular tapping the locked-in value of a home will get.

Rocket doesn't offer home equity lines of credit but does offer fixed-rate home equity loans — and the currently out-of-favor cash-out refinance.

Few homeowners are likely to refinance their low-rate mortgage for a higher-rate loan, no matter how much cash they might get. Home equity loans are a second mortgage that can better serve the purpose.

The Rocket Mortgage home equity loan requires that you have enough equity in your home to take out a lump sum of at least $45,000, and loan terms are available for 10 or 20 years.

The Rocket home equity loan has a fixed interest rate, and on the day we checked, no published rate was available for the HEL. A disclaimer for a sample 10-year HEL showed a rate of 9.37% (9.958% APR) with no discount points.

Since this information was used as an illustration, it probably won't apply to a new application. Your interest rate will be determined by the usual credit qualifications, such as your debt-to-income ratio, credit score, and loan amount.

Dig deeper: The differences between HELOCs and home equity loans

On the day we checked out the Rocket home loan rates page, Rocket showed a handful of fixed-rate loans with two or more discount points to lower the rates. The disclaimer revealed the mortgage rate assumptions to include a whopping 40% down payment (30% on jumbo loans), a credit score of 740, and a debt-to-income ratio of less than 43%.

You might get a better idea of a ballpark mortgage rate by clicking on the "Estimate My Rate" button, but it will take more than a dozen steps and require your contact information to see the results.

Because of these factors, Rocket Mortgage earned only one star for mortgage rate transparency.

Rocket Mortgage mortgage rate transparency score: 2 out of 5 stars

Read more: How to get the lowest mortgage rates

Yahoo Finance uses 2023 Home Mortgage Disclosure Act data comprised of 10 million home loan applications to score mortgage lenders on issued mortgage rates and total loan costs. We score each lender on a scale of 1 (lowest) to 5 (highest).

For example, regarding mortgage rates, a lender with a lower score charged a higher-than-median mortgage interest rate for loans issued in 2023. A higher score would indicate that a lender granted lower-than-median home loan interest rates to borrowers in 2023.

With total home loan costs, a lower score would indicate that a lender charged higher than median total home loan costs in 2023. A high rating would mean that a mortgage lender offered lower than median all-in home loan costs in 2023.

Rocket Mortgage home loan rates score: 4 out of 5 stars

Rocket Mortgage total loan costs score: 2 out of 5 stars

What this means: Rocket Mortgage offered a lower-than-median mortgage rate of 6.5% but a higher-than-median total loan cost of $ 7,805.20 to borrowers in 2023.

Rocket Mortgage practically invented the online mortgage application. It popularized it for sure. You provide personal information, including proof of income, employment background, and credit history.

You will want to have some documents ready to scan and upload too, such as:

  • Tax returns

  • Pay stubs

  • W-2s

  • Bank statements

  • Identification

Rocket says you can complete an initial application and "get loan options in as little as 7 minutes."

It also notes that this is not a completely automated effort. You must "customize your loan and wrap up your application with a quick online chat or call."

Dig deeper: How to get a mortgage in 2024

Credit scores are the currency of the lending industry. With a good credit score, you gain access to borrow money. With an excellent credit score, you not only get access but a lower interest rate and fewer fees.

Rocket Mortgage requires these credit score minimums:

  • 620 for a conventional loan

  • 580 for an FHA loan

  • 580 for a VA loan

  • 680 for a home equity loan

For the prospective home buyer, Rocket has hundreds of articles detailing the home search, purchase, and finance process. A Learning Center features even more articles and seven calculators that provide rent versus buy, affordability, monthly payment, refinance, and equity access results.

Dig deeper: How much house can I afford?

Using the "land and expand" strategy of snagging a customer for one service and then offering others, Rocket is looking to get deeper into your wallet. Not only does it offer mortgages, but it also offers real estate services, a personal finance app, a credit card, and personal loans. When we got really deep into the website, we even found a car and truck marketplace called Rocket Auto. Who knew?

Rocket Homes works with the mortgage lending department and offers title search and insurance, settlement services, and affiliated real estate agents. The more services you use, the more closing credits and rebates you may qualify for when applying for a loan.

A chat feature looked promising but turned out to be AI-generated. It wouldn't directly answer the simple question of "Does Rocket have HELOCs?" without requiring answers to several questions — including our phone number. We bailed.

Rocket Mortgage online features score: 4 out of 5 stars

As we mentioned up top, Rocket has always been an aggressive marketer. Occasionally, it may have overstepped advertising boundaries — at least some regulators think so. Rocket has not admitted or denied such charges.

In a 2021 settlement shared by a dozen states, the company agreed to abide by federal laws regarding advertising standards related to marketed interest rates and the disclosure of applied discount points and other borrower assumptions. The issues were related to pitches used in material distributed by sales representatives on Rocket's website, and in direct mail and email.

Rocket Mortgage incurred a 10% penalty on its score for consumer regulatory issues.

We enjoy recognizing lenders with social agendas, and something we learned about in our investigation was the Rocket Community Fund. It's a Rocket partnership with some 90 communities that work to end homelessness. Grants are issued to organizations with initiatives tied to housing, education, and employment.

Rocket claims the effort has housed over 139,000 people since 2015.

Rocket Mortgage is the nation's highest-volume mortgage lender. It started out as Quicken Loans and then morphed into Rocket Mortgage by Quicken Loans. In 2021, it changed its name to just Rocket Mortgage.

Quicken Loans is still around. Maybe the old branding still has some value, but the Nationwide Multistate Licensing System (NMLS) lists both as one company with more than a dozen trade names. According to a disclaimer on the Quicken Loans website, all of the businesses are individual operating subsidiaries of RKT Holdings, LLC, with their own management structure.

  • Rocket Mortgage earns our highest rating (5 stars) in our Affordability category for offering a wide range of mortgage products.

  • Rocket scores well in our interest rate analysis, earning 4 stars for offering lower-than-median mortgage rates.

  • Its website offers plenty of educational material, earning Rocket Mortgage 4 stars in our Online Features category.

  • Rocket Mortgage receives a low rate rating (2 star) for offering little rate transparency.

  • Rocket also earns just a 2-star score for having higher-than-median loan costs.

If you're considering Rocket Mortgage or Quicken Loans and want to know which is best, you may be surprised to find out that their operating models are very different. It would be easy to assume they have identical experiences since one grew out from the other.

While Rocket Mortgage is a nonbank lender that underwrites and issues its own loans, Quicken Loans is a marketplace. You cannot submit an application and be prequalified or preapproved directly by Quicken Loans. It takes the information you provide and supplies it to third-party lenders, so you may be contacted by a lender or mortgage broker who is paying a fee to advertise on the Quicken Loans network.

Now, we don't know the structure of compensation embedded in this referral system, but it is very likely to add fees upon fees.

Our recommendation: Go with Rocket Mortgage over Quicken Loans.

In 2023, AmeriSave committed more of its business (38%) to FHA loans than Rocket Mortgage (27%). And AmeriSave says it charges no origination fees on FHA loans. Rocket Mortgage charges a 1% origination fee on FHA loans. But AmeriSave requires a slightly higher FICO score on FHA loans (600) than Rocket (580).

For homeowners, AmeriSave offers draw-equity-as-you-need-it HELOCs, while Rocket Mortgage offers lump-sum home equity loans.

AmeriSave mortgage review

Like our comparison between Rocket Mortgage and Quicken Loans above, this is a case of two different lending business models.

Rocket Mortgage is a direct-to-consumer lender, while United Wholesale Mortgage is available only through a mortgage broker. You can't go to the UWM website to check mortgage rates, apply for a loan, or learn about types of mortgages. The site is strictly BtoB and aimed directly at mortgage professionals.

Rocket Mortgage is a legitimate company. In fact, it's the largest home loan provider in the U.S. The company was formed nearly 40 years ago as a mortgage broker, then became a direct mortgage lender in 1988.

J.D. Power's mortgage lender origination survey has put Rocket Mortgage near or at the top of its satisfaction list for years. It has an A+rating by the Detroit Better Business Bureau, though individual reviews on the BBB website are harsh — averaging 1.85 out of 5 stars. Perhaps people only interact with the BBB when they are dissatisfied.

Some people may not be as tech-savvy and fear the digital mortgage process could be overwhelming. If you would rather talk to someone, it's pretty easy. A chat button is always on the screen, and if you click on the listed phone number, it will launch FaceTime. In your PJs? There's a regular 800 phone number to call too.

Rocket Mortgage began as Rock Financial, then RockLoans.com. In 1999, Intuit purchased it and renamed it Quicken Loans. The original founders and some investors bought the company back from Intuit and launched QuickenLoans.com in 2004. Rocket Mortgage launched in 2015.

Today, there is a significant difference between the two business models. Quicken Loans is a mortgage marketplace referring leads to third-party lenders. Rocket Mortgage is a direct lender.

There is no bank associated with Rocket Mortgage. As such, it's known as a nonbank lender.

Methodology:

Yahoo Finance reviews and scores mortgage lenders with quintile scoring in five primary categories: 1) Interest rates. Using 2023 Home Mortgage Disclosure Act data comprised of 10 million home loan applications, we score mortgage lenders on issued mortgage rates below or above the annual median of reporting lenders. 2) Affordability. A measure of loan product availability and the willingness of a lender to offer government-backed loans, low down payments, down payment assistance, and consideration of nontraditional credit. 3) Loan costs. HMDA data is again analyzed, and lenders are rated based on total loan costs compared to the annual median. 4) Rate transparency. The ability of a website user to obtain a mortgage interest rate estimate. We score lenders based on whether rates are enhanced with discount points or high credit score requirements, disclaimers revealing rate assumptions, sample advertised rates, and whether adjustable or no discount point rate estimates are available. 5) Online features. An analysis of the educational material, calculators, and additional resources available to users.

Review of Nationwide Multistate Licensing System (NMLS) data on regulatory actions can trigger a penalty to the score of any lender with a consumer mortgage-related administrative or enforcement action within the past five years.

Advertisers or sponsorships do not influence ratings.

Editorial disclosure for Mortgages:

The information in this article has not been reviewed or approved by any advertiser. The details on financial products, including interest rates and fees, are accurate as of the publish date. All products or services are presented without warranty. Check the lender's website for the most current information. This site doesn't include all currently available offers.