Rocket Mortgage: 2024 Home Equity Review

Benefits

• While home equity loans are a new product for Rocket Mortgage, the lender’s track record with its other home loan offerings indicates that borrowers loved their experience. The lender scored highest in customer satisfaction with mortgage origination in J.D. Power’s most recent survey.
• Rocket Mortgage is known for its convenient loan application process, which you can complete via mobile app, and the lender offers online approvals. 

Drawbacks

• Some other lenders offer a wider range of repayment terms, such as five years to 30 years. Rocket Mortgage’s 10- and 20-year options don’t allow for as much flexibility.
• You won’t find the lender’s current home equity loan rates or closing costs on the Rocket Mortgage website.

Home equity 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).

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.

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 apply with Rocket Mortgage

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 ET and Saturday and Sunday from 8 a.m. to midnight ET.

How Bankrate scored Rocket Mortgage

• Methodology

  To determine a home equity lender's Bankrate Score, Bankrate rates lenders on a scale of one (1) to five (5) stars — with five (5) the highest rating — based on a variety of factors relating to the lender's products and services. To assign our ratings, we assessed each mortgage lender across three core areas:

  • Affordability: Annual percentage rate (APR) - 80%; introductory APR - 20%
  • Availability: Licensing - 50%; credit score - 20%; loan minimum - 10%; draw requirement - 10%; loan products - 10% 
  • Borrower experience: Rate transparency - 45%; convenience - 35%; customer service - 10%; fixed-rate options - 10%

  Learn more about our methodology.