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Bankrate Rating = 3.8/5
The Bankrate Score is determined by availability, which takes into account minimum loan amounts and loan types, affordability, which takes into account introductory/minimum APRs and discounts, and customer experience, which takes into account auto-payment and online accessibility.
Here is a list of some advantages and disadvantages of home equity loans from Rocket Mortgage.
Rocket Mortgage is the biggest mortgage lender in the U.S. Formerly known as Quicken Loans, it is headquartered in Detroit, along with operating mortgage origination offices in Cleveland, Ohio and Phoenix, Arizona. Rocket Mortgage lends to borrowers in all 50 states and Washington, D.C. In 2022, it launched its first home equity loan product.
Rocket Mortgage snapshot
| Home equity loan types | Home equity loan |
| Loan amounts | $45,000 to $350,000 |
| Credit score minimum | 680 |
| Repayment terms | 10 years and 20 years |
Benefits
- Excellent customer service: Rocket Mortgage’s home equity loans are a new product, but the lender’s track record with its other home loan offerings shows that customers were happy with their encounter. In J, the lender’s customer satisfaction rating for mortgage origination was significantly higher than the industry average. D. In terms of customer satisfaction for mortgage servicing, it was far ahead of every other lender in Power’s most recent survey.
- Rocket Mortgage is renowned for its straightforward loan application process, which you can complete via a mobile app. The lender also provides online approvals.
- Flexible financing: A home equity loan could provide you with up to $350,000 if you meet the requirements.
Drawbacks
- Repayment terms are restricted; other lenders provide a wider range, such as five to thirty years. The 10- and 20-year options from Rocket Mortgage don’t offer as much flexibility.
- Rocket Mortgage provides home equity loans, but if you believe a home equity line of credit (HELOC) would be a better fit for your requirements, you’re out of luck.
- No rate information is available online: The Rocket Mortgage website does not list the lender’s current home equity loan rates or closing costs.
Types of fees charged
It’s unclear what fees are associated with Rocket Mortgage’s home equity loans at this time. Many home equity loans come with at least some fees and closing costs (origination fee, appraisal fee, title fee and discount points), so when comparing home equity offers, be sure to ask what costs you’ll need to pay.
Loan products offered
Rocket Mortgage offers fixed-rate home equity loans between $45,000 and $350,000 with two repayment terms: 10 years and 20 years. You can borrow up to a combined loan-to-value (CLTV ratio) of 90 percent (between your first mortgage and the home equity loan).
How to qualify for a home equity loan with Rocket Mortgage
Rocket Mortgage requires a median credit score of at least 680 for home equity loans. If you and your partner or spouse are both listed on the loan application, the lower of your credit scores will dictate your eligibility and borrowing terms. You’ll also need a debt-to-income (DTI) ratio that doesn’t exceed 45 percent. You’re allowed one late payment on your primary mortgage in the last 12 months to still be eligible for a home equity loan. The outstanding amount on your primary mortgage and the amount you borrow with a home equity loan cannot exceed 90 percent of your home’s value.
How to get started
To learn more about Rocket Mortgage’s home equity loans, you can complete an application online, contact a loan officer by phone at 833-326-6018 or reach out via the lender’s online chat tool, available Monday to Friday from 7 a.m. to midnight Eastern time and Saturday and Sunday from 8 a.m. to midnight Eastern time. Be sure to explore other home equity lenders for quotes, too. The path to the best deal always involves comparison-shopping to see which lender can offer a mix of low fees, competitive rates and flexible repayment terms.
How Bankrate rates Rocket Mortgage
| Bankrate Score | 3.8 | Scoring factors |
|---|---|---|
| Availability | 3.2 | Higher loan amounts but limited information regarding approval and closing times |
| Affordability | 3.8 | Rates and fees undisclosed |
| Customer experience | 4.5 | Easy online application and superior customer service |
Methodology
To create our Bankrate Scores, we evaluated lenders based on availability, affordability and customer experience. Availability was assessed based on the minimum loan amount required, time to approval, days to close, minimum draw requirements, minimum credit score requirements and loan types offered. Affordability was assessed based on minimum APR, discounts and promotions offered and associated fees. Customer experience was assessed based on online application and account availability, customer support, auto payment availability and mobile app availability and ratings.
FAQ
How hard is it to get a HELOC?
If you have a credit score of 680 or higher and meet the equity requirements, you should be eligible for a loan. However, the majority of lenders prefer a credit score of at least 700. Homeowners with credit scores between 621 and 679 might occasionally also be accepted.
Is a HELOC a good idea right now?
Bottom Line. A HELOC can be a good choice to finance bigger projects like home renovations or debt consolidation if you have home equity to draw from. However, if you default on a HELOC, you run the risk of severely harming your credit and even losing your home.
Why are HELOCs not being offered?
Key takeaways. Around 2011, several large banks stopped providing reverse mortgages, perhaps as a result of the 2008 financial crisis. Additionally, it appears that these banks just couldn’t handle the risk of reverse mortgages. Several large banks stopped providing HELOCs early in the pandemic, citing unstable market conditions.
Does a HELOC require an appraisal?
Before approving you for a HELOC or home equity loan, the majority of lenders demand an appraisal. This appraisal will confirm the current value of your home. After all, a lender must know the value of your home in order to determine the amount you can borrow.