At Bankrate, we work to guide you toward making more informed financial decisions. Although we follow strict guidelines, this post may mention products from our partners. Heres an explanation for . Bankrate logo.
Bankrate, which was established in 1976, has a long history of assisting people in making wise financial decisions. By demystifying the financial decision-making process and empowering people to know what to do next, we’ve maintained this reputation for more than 40 years.
You can trust that Bankrate adheres to a strict editorial policy and is acting in your best interests. Our content is written by highly qualified professionals, and it is edited by specialists in the fields in which it is published, ensuring that it is impartial, truthful, and reliable.
In order for you to feel confident in how you’re managing your money, our banking reporters and editors concentrate on the topics that consumers care about most, such as the top banks, the most recent rates, various types of accounts, and money-saving advice. Bankrate logo.
You can trust that Bankrate adheres to a strict editorial policy and is acting in your best interests. Our esteemed editors and reporters produce truthful and accurate content to assist you in making wise financial decisions.
We value your trust. Our editorial standards are in place to ensure that we fulfill our mission of giving readers accurate and unbiased information. To make sure the information you’re reading is accurate, our editors and reporters conduct extensive fact-checking on editorial content. Our editorial team and advertisers are separated by a wall that we uphold. Our editorial staff does not get paid directly by our advertisers.
The editorial staff at Bankrate writes on behalf of YOU, the reader. Our aim is to provide you with the best guidance so that you can make wise decisions regarding your personal finances. To prevent advertisers from influencing our editorial content, we adhere to strict guidelines. Our editorial staff is not paid directly by advertisers, and all of our content is meticulously fact-checked to ensure accuracy. So, whether you’re reading an article or a review, you can be sure that the information is reliable and trustworthy. Bankrate logo.
How we make money
You have money questions. Bankrate has answers. For more than 40 years, our experts have been assisting you in becoming financially savvy. We continuously work to give customers the knowledge and resources necessary to be successful in their financial endeavors.
You can rely on Bankrate’s editorial standards to produce truthful and accurate content. Our esteemed editors and reporters produce truthful and accurate content to assist you in making wise financial decisions. Our editorial team produces factual, unbiased content that isn’t influenced by our advertisers.
We are open and honest about how we earn money in order to provide you with high-quality content, affordable prices, and practical tools.
Bankrate. com is an independent, advertising-supported publisher and comparison service. We receive payment in exchange for the placement of sponsored goods and services on our website or when you click on specific links there. the a a a a a a. a a a a a a A product’s availability in your area or within your self-selected credit score range, among other things, may have an impact on how and where it appears on this site. Bankrate does not provide information on every financial or credit product or service, despite our efforts to do so.
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|
- 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.
- 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|
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.
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.