Understanding Quicken Home Loan Rates and How to Get the Best Deal

Getting a mortgage is one of the biggest financial decisions you can make. As you shop for home loans, interest rates are a key factor determining the affordability and cost of your financing. Quicken Loans offers a variety of mortgage products with competitive rates. Read on as I break down how their rates work trends that impact pricing, and tips to secure the best Quicken home loan rate for your situation.

How Quicken Determines Mortgage Rates

Quicken provides rate quotes and matches borrowers with lenders in their network Rates are based on

• The mortgage product – Fixed, adjustable, government-backed, jumbo, etc. Each loan type has its own pricing methodology.

• Market conditions – Interest rates fluctuate daily based on bond market activity and other macroeconomic factors

• Your financial profile – Credit score, income, assets, liabilities, loan amount, and other specifics determine your rate.

• Rates aren’t set by Quicken itself but by the lenders underwriting the loan. Quicken’s role is providing you options to compare.

Overview of Key Factors Impacting Your Rate

Many elements influence the mortgage rate lenders can offer you. Here are some top factors:

Credit score – The higher your score, the better your rate. Scores below 620 may not qualify with some lenders.

Down payment amount – The more you put down, the lower the rate since you’re less risky. 20% down provides best pricing.

Debt-to-income ratio – Lenders look at your total monthly debt payments vs. income. Ideal ratio is under 36%.

Loan type and term – Shorter terms and fixed rates carry lower interest rates. ARMs offer lower initial rates but with volatility risk.

Property type and occupancy – A primary residence gets better pricing than investment properties. Conforming loans beat jumbos.

The combination of these variables determines your rate – improving them means potential savings.

Today’s Mortgage Rate Snapshot at Quicken

Rates change daily with market fluctuations. Here’s a snapshot of today’s rates for sample products from Quicken’s lender network:

Loan Type	Interest Rate	APR
30-Year Fixed	6.5%	6.676%
15-Year Fixed	5.875%	6.443%
5/1 ARM	5.5%	5.655%
VA Loan	6.25%	6.843%
Jumbo 30-Year	6.625%	6.958%

Rates are just a sample – your individual rate will depend on your full credit and financial profile assessed during the lending process.

How Interest Rates Have Changed Over Time

Historically, rates trend down over long periods, but fluctuation is normal. Here’s a snapshot of how average 30-year fixed mortgage rates have moved over the past 5 years:

• Jan 2018 – 4.15%
• Jan 2019 – 4.45%
• Jan 2020 – 3.62%
• Jan 2021 – 2.65%
• Jan 2022 – 3.56%
• Jan 2023 – 6.15%

Rates were at historical lows in 2020-2021 before rising sharply in 2022 on inflation and other economic factors. Expect continued volatility.

7 Tips for Getting the Best Possible Rate on Your Quicken Loan

While you can’t control market rates, here are some ways to ensure you get the lowest rate you qualify for:

• Shop lenders – Compare Quicken and 2-3 other lenders to find the best deal.

• Improve your credit – Pay down balances and correct errors to boost your score.

• Lower your DTI – Reduce other monthly debts and housing payment ratio.

• Make a larger down payment – Put down 20% or more if possible.

• Choose a shorter-term – 15-year fixed loans have lower rates than 30-year.

• Lock your rate – Lock in when rates dip to secure that pricing.

• Buy points – Pay points upfront to buy down the interest rate.

Saving just 1⁄8 of a point on a $200k loan saves nearly $2600 over 30 years – so shopping around and negotiating can really pay off!

The Pros and Cons of 7 Popular Quicken Mortgage Products

Quicken offers a wide array of home loan options through its lending network. Here’s an overview of key mortgage types they provide, along with the pros and cons of each:

30-Year Fixed:

• Pros: Low monthly payments, predictable set rate
• Cons: Higher total interest paid over life of loan

15-Year Fixed:

• Pros: Build equity faster, lower rate/total interest
• Cons: Higher monthly payments

5/1 ARM:

• Pros: Very low initial rate, flexible options
• Cons: Payment increases after 5 years, rate uncertainty

FHA Loan:

• Pros: Low down payment (3.5%), flexible credit guidelines
• Cons: Mortgage insurance required

VA Loan:

• Pros: No down payment required, no mortgage insurance
• Cons: For qualified veterans/military only

Jumbo Loans:

• Pros: Funds above conforming limits, competitive rates
• Cons: Typically require higher credit scores/down payment

Custom Term:

• Pros: Choose loan length between 8-29 years
• Cons: Less common – may be harder to sell/refinance

Review your budget, credit, plans, and goals to decide which option best suits your needs.

Next Steps to Getting a Quicken Home Loan Quote

Now that you understand more about Quicken’s rates and mortgage products, here are some suggested next steps:

• Get prequalified – See rates you may qualify for based on a soft credit check

• Compare loan options – Determine the ideal loan type, down payment etc. for your goals

• Improve your financial profile – Pay down debts, increase income to boost DTI, improve credit

• Choose a real estate agent – They can advise you on local market conditions and home prices

• Connect with a Quicken loan officer – Get personalized guidance and rate quotes

• Apply and lock your rate – Formally apply when you have an accepted offer to lock in current rates

With preparation and shopping around, you can find the optimal Quicken home loan rate for your unique financial situation. Being an informed borrower pays when making this big purchase.

Final Thoughts on Finding the Best Mortgage Rate

The mortgage loan is likely the largest, most long-term debt you’ll take on. While rates are just one piece of the puzzle, securing the lowest rate for which you qualify saves thousands over the life of the loan.

Do your homework upfront, compare options from Quicken Loans and other lenders, and improve your financial profile. Rates fluctuate constantly in line with market forces. Be ready to act when the timing is right.

With a methodical approach and competitively shopping lenders, you’ll be in a great position to get a low rate and affordable monthly payments on your Quicken home loan. Saving on interest frees up funds to build equity and wealth over time.