What types of mortgage loans does Rocket Mortgage offer?
Rocket Mortgage offers most types of mortgage loans and is one of the largest online mortgage lenders in the country. The full list of loans includes:
- VA loans, or Veteran Affairs loans
- FHA loans, or Federal Housing Administration loans
- Conventional loans
- Jumbo loans
- ARM loans, or Adjustable-Rate Mortgages
- Refinancing
What is the minimum credit score for Rocket Mortgage?
The minimum credit score for conventional loans with Rocket is 620, and 680 for jumbo loans. You can obtain an FHA or VA loan through Rocket Mortgage with credit scores as low as 580.
What are the minimum down payment requirements for Rocket Mortgage?
The minimum down payment requirements with Rocket Mortgage are the same as the standard minimum down payment requirements for all mortgage loans. Here are the minimum down payment requirements by loan type:
- VA Loan: No down payment required at 0%
- FHA Loan: Minimum down payment of 3.5%
- Conventional Loan: Minimum down payment of 3%
- Jumbo Loan: Minimum down payment of 10%
What are the terms, fees, and conditions of Rocket Mortgage?
Rocket Mortgage charges most of the typical fees charged by all lenders, but there are no fees to lock in the interest rate for 45 days. Locking in your interest rate can be beneficial, especially given the rising interest rates and the forecast for them to continue to increase throughout 2022. Even a quarter point can add tens of thousands of dollars over the life of your loan.
However, if you want to extend the interest rate for an additional 15 days (and you can do this twice), it will cost you 25 basis points, meaning your interest rate will rise by 0.25%. While some lenders offer a free float-down feature, which allows you to lower your locked interest rate if rates drop, Rocket Mortgage does not offer this feature as a standard benefit. Instead, Rocket Mortgage offers a product called Rate Shield, which allows you to lock in an interest rate for 90 days before you find a home and includes one free float-down – but will cost you 1 basis point.
This online mortgage giant also requires a $500 deposit for home appraisals, which is used to pay for the appraisal cost when you close on your new home at the end of the deal.
In addition to the lender-specific fees, there are other standard costs and fees associated with buying a home. Here are some common fees:
- Home appraisal
- Title insurance
- Attorney fees
- Taxes
- Owner’s insurance
What discounts does Rocket Mortgage offer?
Like most lenders, Rocket Mortgage offers you the ability to lower your interest rate by purchasing loan points upfront. If you can pay cash for loan points, your interest rate for the entire loan will decrease, saving you tens of thousands of dollars over the life of your loan.
Can you refinance with Rocket Mortgage?
Yes, Rocket Mortgage offers mortgage refinancing loans. You can complete a cash-out refinance or a refinance with a standard interest rate.
Where does Rocket Mortgage operate?
Rocket Mortgage operates online in all 50 states in the United States. Although the company itself does not employ any mortgage brokers, it works with thousands of independent mortgage brokers across the country, many of whom have physical branches you can visit for a personal experience.
Frequently Asked Questions
How long does it take to apply online with Rocket Mortgage?
Rocket Mortgage has a streamlined approval process called Overnight Underwrite, which can approve you for a mortgage loan in as little as two hours.
Does Rocket Mortgage advertise interest rates online?
Yes, Rocket Mortgage advertises daily interest rates online, but your interest rate will always depend on your personal financial situation. Your credit score is an important factor in determining your interest rate, so be sure to prioritize paying down any high-interest debt, such as credit card debt, before you start searching for a home.
How much
How long does it take to close a house with Rocket Mortgage?
Closing on a new home with Rocket Mortgage can take less than eight days, which is a very fast closing process. On average, the closing process takes about 26 days, but this depends on the market where you are buying your new home. In particularly hot markets, you should expect that closing on your home will take longer than a month, regardless of the mortgage lender you work with.
Methodology
CNET reviews mortgage lenders by comparing a variety of criteria including: types of loans offered, credit score requirements, minimum down payment requirements, features, terms and fees, discounts offered, accessibility, and refinancing options.
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Written by Alix Langone
Alix is a former writer for the CNET Money team. She has also previously reported on retirement and investing for Money.com and was a writer at Time magazine. Her work has appeared in various publications such as Fortune, InStyle, and Travel + Leisure, and she has also worked in social media and digital production at NBC Nightly News with Lester Holt and NY1. She graduated from the Craig Newmark Graduate School of Journalism at CUNY and Villanova University. When she’s not scrolling Twitter, Alix enjoys hiking, playing tennis, and watching her neighbors’ dogs. She is now based in Los Angeles and does not miss the New York subway at all.
Updated on January 2, 2024
Source: https://www.cnet.com/personal-finance/mortgages/reviews/rocket/
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