Quicken Loans Mortgage Review
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Ready to buy a home? If you’re like most people, you’ll need to take out a mortgage loan to finance this purchase. Fortunately, you have plenty of choices when applying for a mortgage loan, including taking out one originated by Quicken Loans Mortgage, owned by Rocket Mortgage.
Is a mortgage loan from Quicken Loans the right choice for you? Our Quicken Loans Mortgage review explains how it operates, the types of mortgage loans it offers, and the closing costs it might charge you.
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What is a mortgage loan from Quicken Loans Mortgage?
People turn to mortgage loans when they can’t afford to pay cash for a new home. Because homes are such a big purchase – the National Association of REALTORS® reported that the median price of an existing home in the United States stood at $384,500 in February – most homebuyers apply for a mortgage loan to finance one purchase.
When you take out a mortgage, your lender pays your home’s sellers. You then repay your lender with monthly mortgage payments. These payments pay down your loan’s principal balance and the amount you owe and cover the interest that Quicken Loans Mortgage charges. With each mortgage payment, you’ll typically also pay a portion of your annual property taxes and homeowners’ insurance bill.
Before approving a mortgage loan, Quicken Loans Mortgage will review your three credit reports and check your three-digit FICO credit score. Your credit score and reports show how well you’ve paid your bills and handled your credit. The higher your credit score ranges from 300 to 850, the more likely you will qualify for a Quicken Loans Mortgage with a low interest rate.
The term or length of your loan determines how long you make monthly mortgage payments. The most popular type of home loan is the 30-year, fixed-rate mortgage. In this mortgage, you repay your loan with over 30 years of monthly payments, and your interest rate remains the same throughout your mortgage.
Quicken Loans Mortgage also offers shorter-term loans, such as 15-year fixed-rate mortgages and adjustable-rate mortgages, better known as ARMs. In an ARM, your interest rate will rise or fall throughout the life of your loan.
Quicken Loans Mortgage also offers personal loans, and refinance loans, in which you can swap out your current mortgage for one with a hopefully lower interest rate, and home equity loans, in which you can borrow against the equity you’ve built in your home to pay for home repairs, a child’s college tuition or anything else for which you need an influx of funds.
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How do mortgage loans from Quicken Loans Mortgage work?
When you are ready to buy a home, you’ll fill out Quicken Loans Mortgage’s online loan application, which you can find here.
To complete this application, you must provide key personal and financial information. Quicken Loans Mortgage will then review this information to make sure that you can afford to repay the mortgage dollars that you are borrowing.
During the loan process, Quicken Loans Mortgage checks your credit and verifies your income to determine how much money it will lend you. But you do not yet commit to your loan. You only do this after you submit an offer for a home and the seller accepts it.
If you click either of the remaining two loan options, Quicken Loans Mortgage will work toward getting you officially approved for a mortgage that you can close on after you and a seller agree on a sales contract.
Once you enter your email address, Quicken Loans Mortgage will ask permission to check your credit reports and FICO credit score. The lender will also ask questions about your financial health, such as your gross monthly income, job status, and monthly debt obligations.
Quicken Loans Mortgage underwriters will review your financial information during underwriting to determine how much of a monthly mortgage payment you can afford. Quicken Loans Mortgage will then send you a notice stating how large a mortgage you have qualified for and what interest rate it attaches to that mortgage. Interest rate is important: Remember, the higher the mortgage rate, the higher your monthly payment will be.
You will close on your Quicken Loans Mortgage, signing several documents, after you and the seller of your new home agree on an offer. Your closing will usually happen after you order a home inspection of your buying property.
Once your loan closes, you are responsible for making your regular monthly payments.
How much does a Quicken Loans Mortgage cost?
The cost of your Quicken Loans Mortgage loan will vary depending on the size of your loan. Quicken Loans Mortgage generally charges closing costs that range from 3% to 6% of your loan’s total amount.
If you take out a $300,000 mortgage, your closing costs would range from $9,000 to $18,000.
Quicken Loans Mortgage doesn’t require upfront payment of these costs. You can roll them into the total of your mortgage. Say your loan has closing costs of $10,000. If you take out a $300,000 mortgage, you can roll those costs into your total to pay back $310,000 over the loan term.
Features of a Quicken Loans Mortgage loan
Interest rate options
Quicken Loans Mortgage offers both fixed- and adjustable-rate mortgages. In a fixed-rate mortgage, your interest rate will never change. In an adjustable-rate mortgage or ARM, your rate will remain fixed for several years, usually five to seven, before adjusting, usually once a year, based on whatever economic index your loan is tied to. Typically, your rate will go up during the first adjustable year, so make sure you can afford a new, higher payment. The benefit of an ARM is that your interest rate will usually be lower during your loan’s fixed period. The downside? ARMs come with more uncertainty than fixed-rate mortgages.
Term flexibility
When taking out a Quicken Loans Mortgage, you can choose from several term lengths, too. The most common mortgage types are 30-year and 15-year, fixed-rate mortgages. In a 30-year mortgage, you’ll have 30 years to repay your loan. In a 15-year loan, you’ll have 15. Longer-term mortgages come with lower monthly payments. But you’ll pay far more interest over time than a shorter-term mortgage, such as a 15-year, fixed-rate mortgage.
Customer support
Quicken Loans Mortgage is a national lender with a robust customer service department. If you have questions about your loan or are interested in mortgage refinancing, you can contact Quicken Loans Mortgage by calling 800-603-1955 or starting an online chat from its website.
There’s an app
Quicken Loans Mortgage offers an app you can download from The App Store or Google Play. The app lets you make payments, check your loan balance, or contact a customer service representative.
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Who should apply for a mortgage from Quicken Loans Mortgage?
Those interested in loans that require a lower down payment. While Quicken Loans Mortgage offers conventional mortgage loans, it also offers government-insured loans that require low down payments. You can qualify for an FHA loan from Quicken Loans Mortgage with a FICO credit score of 580 or higher. If your score is in this range, you’ll need a down payment of 3.5% of your mortgage amount for an FHA loan from Quicken Loans Mortgage. Quicken also offers VA loans available to members or veterans of the U.S. Military. These loans require no down payment at all. Quicken Loans Mortgage requires a minimum FICO score of 580 for anyone applying for a VA loan.
Those worried about credit scores. Quicken Loans Mortgage requires a minimum FICO credit score of 580 for its home loans. You might, though, need to have a stronger income or lower debt load to qualify for a mortgage with a score that low. You’ll also be hit with a higher interest rate if your credit score is lower. Most mortgage lenders consider FICO scores of 740 or higher to be very good and those of 800 or higher to be excellent. If your score is in that range, your chances of qualifying for a Quicken Mortgage home loan at a lower rate are higher.
Those who prefer to handle most of the application process online. You can apply for a mortgage loan – or home equity loan, refinance, or cash-out refinance—online with Quicken Loans Mortgage. Quicken says that you can complete most of the mortgage process without talking face-to-face to a home loan expert, but you might have to answer some questions, either through a phone call or online chat, during the process.
Those with moderate monthly expenses. Quicken Loans Mortgage prefers working with borrowers whose monthly recurring expenses, including a new mortgage payment, are no more than 45% of their gross monthly income. Recurring expenses include your mortgage, auto, student, and personal loan payments, as well as the minimum you must pay monthly on your credit cards.
Who should not apply for a mortgage with Quicken Loans Mortgage?
Those with plenty of negative information on their credit reports. When you apply for a mortgage, Quicken Loans Mortgage will review your credit reports, each maintained by the national credit bureaus of Experian, Equifax, and TransUnion. Late payments will remain on these reports for seven years. Foreclosures will also stick on your reports for seven years. Bankruptcy filings will remain on your reports for seven or 10 years, depending on the type. The more red flags on your reports, the more likely Quicken Loans Mortgage is to reject your mortgage application. It might be best to wait until some of these negative judgments fall off your reports before applying.
Those who want to apply for a loan in person. If you prefer working with a mortgage loan officer in person, you might consider a more traditional lender that offers brick-and-mortar locations in your neighborhood. Quicken Loans Mortgage does not offer branches that consumers can visit.
Those who have a FICO credit score under 580. Quicken Loans Mortgage says that you need a FICO credit score of at least 580 to qualify for a mortgage. If your score is under this, begin a new history of paying your bills on time and paying off your credit card debt. This will slowly but steadily rebuild your credit score.
Pros and cons of Quicken Loans Mortgage
Pros
- You can make an online application for a Quicken Mortgage loan.
- Quicken Mortgage offers an app that you can use to make payments, track your mortgage loan balance and ask questions of home loan experts.
- You can apply for mortgage loans of differing term lengths.
- You can apply for both fixed-rate and adjustable-rate mortgages.
- Rocket Mortgage loans are available in all 50 states and Washington, D.C.
Cons
- You will pay closing costs ranging from 3% to 6% of your loan amount.
- For most loan types, you’ll need to come up with a down payment, though that required down payment could be as low as 3% of your loan amount.
- If you don’t come up with a down payment equal to 20% of your loan balance when applying for a conventional loan, you will be required to pay for private mortgage insurance, better known as PMI.
Quicken Loans Mortgage vs. the competitors
Lender | Mortgage loans offered | Closing costs | Minimum credit score required for a mortgage loan |
Quicken Loans Mortgage | Conventional, FHA, VA, and home equity loans. | 3% to 6% of your total loan amount. | 580 |
Guaranteed Rate | Conventional, FHA, VA, home equity loans, and home equity lines of credit (HELOCs). | 2% to 5% of your total loan amount. | 620 |
Ally | Ally only offers fixed-rate and adjustable-rate conventional mortgages. It does not offer HELOCs, home equity loans, or any government-insured mortgages. | 2% to 5% of your loan amount. | 620 |
Guaranteed Rate
Guaranteed Rate offers a combination of online and in-person services, making it a good choice for borrowers who don’t mind applying for a mortgage online but also want access to mortgage loan officers if they have questions. Guaranteed Rate lends in all 50 states and Washington D.C. and operates 400 branches nationwide.
Guaranteed Rate offers a full suite of mortgage loan products, including conventional, FHA, and VA loans. It also offers home equity loans and, unlike Quicken Loans Mortgage, HELOCs. You can expect to pay from 2% to 5% of your loan amount in closing costs, and you’ll typically need a FICO credit score of at least 620 to qualify for a loan from Guaranteed Rate.
Ally
Like Quicken Loans Mortgage, Detroit, Michigan-based Ally is an online bank with no physical branch locations. You’ll need to be comfortable applying for and managing your mortgage loan online with Ally.
Ally offers a more limited range of loan types. The bank offers fixed-rate and adjustable-rate conventional mortgages. It does not offer home equity loans or HELOCs. It also does not offer government-insured FHA, VA, or USDA loans.
You can expect to pay from 2% to 5% of your loan amount in closing costs. You’ll typically need a minimum FICO credit score of 620 to qualify for an Ally mortgage loan.
American Homeowners Could Save Big With The Help Of U.S. Mortgage Experts
If you've owned your home for 3+ years, you may be able to get cash out of your home and slash your monthly bills. It costs $0 to get connected with an expert and check your options. You'll be shocked to see how much you could save.
The bottom line
Quicken Loans Mortgage could be a good choice if you are comfortable applying for a loan online. This lender provides mortgages across the United States and offers a wide range of home loan products, from conventional and government-insured mortgages to fixed-rate and adjustable-rate versions.
However, checking your credit report before proceeding with your loan application is recommended.
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Writer
Dan Rafter is a freelance writer who has more than 20 years experience covering personal finance. He's written for the Chicago Tribune, Washington Post, Bankrate, CreditCards.com, Rocket Mortgage, NortonLifeLock and several others.
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