Mortgagerateslocal.com – If you are looking for a mortgage lender, you might be wondering whether to choose Quicken Loans vs Rocket Mortgage. Both are subsidiaries of Rocket Companies, the largest mortgage originator and servicer in the US.
Quicken Loans vs Rocket Mortgage are part of the same company, but they offer different ways of applying for and getting a mortgage. Quicken Loans offers a wide variety of loan types, including conventional, FHA, VA, USDA, jumbo, and adjustable-rate mortgages.
But Rocket Mortgage does not offer USDA loans or home equity loans or lines of credit, but it does offer some unique features, such as flexible term lengths, nonstandard down payment options, and cash-out refinancing up to $2 million for jumbo or VA loans.
We will compare Quicken Loans vs Rocket Mortgage on various aspects, such as rates, fees, products, customer service, and online experience. We will also give you some tips on how to choose the best mortgage lender for your needs.
Who owns Quicken Loans and Rocket Mortgage?
Quicken Loans and Rocket Mortgage are both owned by Rocket Companies, a Detroit-based financial services company that also operates other brands such as Rocket Homes, Rocket Auto, and Rocket Pro. The founder and majority owner of Rocket Companies is Dan Gilbert, who also owns the NBA’s Cleveland Cavaliers.
Quicken Loans was founded in 1985 and has grown to become the largest mortgage lender in the U.S., originating over 1.1 million loans in 2020. Rocket Mortgage was launched in 2015 as the online arm of Quicken Loans, offering a fast and convenient way to apply for and manage a mortgage online or through a mobile app. Rocket Mortgage claims to be able to approve a mortgage in as little as eight minutes.
Quicken Loans vs Rocket Mortgage
The main difference between Quicken Loans and Rocket Mortgage is the way they handle the mortgage application and closing process. Quicken Loans offers a more traditional approach, where you can speak to a loan officer over the phone or in person, and submit your documents by mail, fax, or email. Rocket Mortgage, on the other hand, offers a fully digital experience, where you can apply for and close a mortgage entirely online or through the app.
1. Quicken Loans vs Rocket Mortgage Rates and Fees
One of the most important factors to consider when choosing a mortgage lender is the interest rate and fees that you will pay. These can vary depending on your credit score, loan amount, loan term, loan type, and other factors. To get an accurate quote, you will need to apply with each lender and provide your personal and financial information.
Quicken Loans and Rocket Mortgage both offer competitive rates and fees, but they may not be the lowest in the market. According to the latest data from the Consumer Financial Protection Bureau (CFPB), the average interest rate for a 30-year fixed-rate mortgage was 3.25%, while the average origination fee was $2,500. Quicken Loans and Rocket Mortgage both had slightly higher rates and fees than the average, as shown in the table below.
| Lender | Average Rate | Average Fee |
|---|---|---|
| Quicken Loans | 3.35% | $2,700 |
| Rocket Mortgage | 3.30% | $2,800 |
| Average | 3.25% | $2,500 |
However, rates and fees are not the only factors to consider. You also need to look at the APR, which is the annual percentage rate that reflects the total cost of borrowing, including interest and fees. The APR can help you compare different loan options and lenders more easily. Quicken Loans and Rocket Mortgage both had lower APRs than the average, as shown in the table below.
| Lender | Average APR |
|---|---|
| Quicken Loans | 3.45% |
| Rocket Mortgage | 3.40% |
| Average | 3.50% |
As you can see, Quicken Loans and Rocket Mortgage both offer competitive rates and fees, but they are not necessarily the cheapest options. You should shop around and compare different lenders and loan products to find the best deal for your situation.
2. Products and Services
Another factor to consider when choosing a mortgage lender is the variety and quality of products and services that they offer. You want to find a lender that can meet your specific needs and preferences, whether you are buying a new home, refinancing your existing mortgage, or looking for a home equity loan or line of credit.
Quicken Loans and Rocket Mortgage both offer a wide range of mortgage products and services, such as conventional, FHA, VA, USDA, jumbo, and reverse mortgages. They also offer refinancing options, such as cash-out, rate-and-term, and streamline refinancing.
In addition, they offer home equity loans and lines of credit, which allow you to borrow against the equity in your home for various purposes, such as home improvement, debt consolidation, or education.
Quicken Loans and Rocket Mortgage both have some unique features and benefits that set them apart from other lenders. For example, Quicken Loans offers the YOURgage program, which allows you to customize your loan term from 8 to 30 years, depending on your goals and budget.
Rocket Mortgage offers the Power Buying Process, which allows you to get approved for a mortgage in minutes, lock your rate for up to 90 days, and get a verified approval letter that shows your buying power to sellers and agents.
Quicken Loans and Rocket Mortgage both have some limitations and drawbacks that you should be aware of. For example, Quicken Loans does not offer home construction loans, which are loans that finance the building of a new home.
Rocket Mortgage does not offer home equity loans, which are loans that provide a lump sum of cash based on your home equity. You will need to look elsewhere if you need these types of loans.
3. Customer Service and Online Experience
The final factor to consider when choosing a mortgage lender is the customer service and online experience that they provide. You want to find a lender that is responsive, helpful, and transparent, and that offers a convenient and user-friendly online platform that allows you to apply, manage, and track your loan from anywhere and at any time.
Quicken Loans and Rocket Mortgage both have excellent customer service and online experience, according to various sources and reviews. They both have high ratings and awards from organizations such as J.D. Power, Consumer Reports, and Trustpilot, which measure customer satisfaction and quality.
They both have dedicated loan experts and agents that can assist you with any questions or issues that you may have during the loan process. They both have online tools and resources that can help you with your loan decision, such as calculators, guides, and articles.
Quicken Loans and Rocket Mortgage both have some differences in how they deliver their customer service and online experience. For example, Quicken Loans offers more options for communication, such as phone, email, chat, and social media.
Rocket Mortgage offers more options for automation, such as e-signing, e-closing, and e-notarization. Quicken Loans has more physical branches and offices across the country, while Rocket Mortgage is more focused on the online platform.
Quicken Loans and Rocket Mortgage both have some areas for improvement and enhancement in their customer service and online experience. For example, Quicken Loans could improve its website design and navigation, which can be confusing and cluttered. Rocket Mortgage could improve its customer support availability and response time, which can be slow and limited.
How to choose between Quicken Loans and Rocket Mortgage?
The best way to choose between Quicken Loans and Rocket Mortgage is to compare their rates, fees, and loan options for your specific situation. You can use the Rocket Mortgage website to get a personalized quote and see what loan options you qualify for.
You can also use the Quicken Loans website to get a general idea of their rates and products, but you’ll need to call or chat with a loan officer to get a more accurate quote. You should also compare the customer reviews and ratings of both brands, and see what other borrowers have to say about their experiences. You can find reviews on sites such as Trustpilot, Consumer Affairs, and Better Business Bureau.
Ultimately, the best choice for you depends on your personal preferences and needs. If you value speed, convenience, and flexibility, you might prefer Rocket Mortgage. If you value personal guidance, more loan options, and a more traditional approach, you might prefer Quicken Loans. Either way, you can be confident that you’re working with a reputable and reliable mortgage lender that can help you achieve your homeownership goals.
Conclusion
Quicken Loans and Rocket Mortgage are both reputable and reliable mortgage lenders that offer competitive rates and fees, a wide range of products and services, and excellent customer service and online experience.
They are both subsidiaries of Rocket Companies, the largest mortgage originator and servicer in the US. They have some differences in how they operate and what they offer to borrowers, but they also have some similarities and advantages that make them stand out from other lenders.
