Quicken Loans Mortgage Review 2021

Quicken Loans at a glance

Quicken Loans — with its groundbreaking digital application experience, Rocket Mortgage — ranks among the nation's leading-volume lenders, despite not having a single branch office. Quicken offers a robust variety of mortgage options, but its rates and fees tend to be higher than the national median, as reported in Home Mortgage Disclosure Act data.

Here's a breakdown of Quicken Loans' overall score:

• Variety of loan types: 4 of 5 stars

• Variety of loan products: 5 of 5 stars

• Online convenience: 5 of 5 stars

• Rates and fees: 2.5 of 5 stars

• Rate transparency: 4 of 5 stars

Quicken Loans mortgage types and products

Quicken Loans offers a full nonbank selection of fixed- and adjustable-rate home loans, mortgage refinancing and jumbo loans for higher-priced homes.

What is the “nonbank” distinction? Like nearly all non-depository lenders, Quicken Loans doesn't offer home equity loans or lines of credit. Since it doesn't have the capital from bank deposits to fund mortgages, nonbank lenders sell loans to investors. The largest investors in the industry — government-sponsored enterprises Fannie Mae and Freddie Mac — don't buy home equity loan products.

Quicken is the by far the largest lender in the nation for mortgages backed by the Federal Housing Administration, with more than twice the FHA loan volume of its nearest competitor. It also provides VA loans guaranteed by the Department of Veterans Affairs.

Quicken's YOURGage product allows you to choose a fixed-rate loan term — the length of the mortgage payback — from eight to 29 years. That helps you fine-tune your monthly payment and have a bit more flexibility than the standard 15- and 30-year terms.

While Quicken Loans doesn't offer reverse mortgages, an affiliated company, One Reverse Mortgage, does. Reverse mortgages are typically used by older homeowners to tap the equity in their house for retirement expenses.

Quicken Loans online convenience

Applying for a mortgage with Quicken Loans can begin with a phone call. A force of over 3,000 mortgage bankers stand ready to help, the company says. And that licensed banker will be the same person that you speak with throughout the loan process.

If you would rather start online, you'll be virtually ushered over to Rocket Mortgage, Quicken's "online experience."

Rocket is not some simple little prequalification tool or mortgage loan scenario calculator. It is a full-blown online loan application. It's easy to just jump right in and see if you qualify, but any mortgage application requires a hard credit pull, which can lower your credit score a few points, so you want to be sure you're ready to make a real application.

Rocket will show you an actual mortgage rate based on your credit qualifications and can lock in that rate if you want. And, as with Quicken, you can reach out to talk with a human if you get stuck somewhere in the application process.

To learn more about what it's like to apply for a mortgage online with Quicken, read TalkFinance's review of the Rocket Mortgage process.

Quicken Loans mortgage rates and fees

One of the most important considerations when choosing a mortgage lender is understanding what the loan will cost. To provide consumers with a general sense of what a lender might charge, TalkFinance scores lenders on two factors regarding fees and mortgage rates:

• A lender's average origination fee compared with the median of all lenders reporting under the Home Mortgage Disclosure Act. Quicken Loans earns 2 of 5 stars on this factor.

• A lender's offered mortgage rates compared with the best available on comparable loans. Quicken Loans earns 3 of 5 stars on this factor.

Borrowers should consider the balance between lender fees and mortgage rates. While it's not always the case, paying upfront fees can lower your mortgage interest rate. Some lenders will charge higher upfront fees to lower their advertised interest rate and make it more attractive. Some lenders just charge higher upfront fees.

You can decide to buy discount points — a fee paid with your closing costs — to reduce your mortgage rate.

Deciding whether to pay higher upfront fees is a matter of considering how long you plan to live in your home and how much cash you have to apply toward closing costs when you sign the loan paperwork.

» MORE: "Should I buy points?" calculator

Quicken Loans rate transparency

If you want to get an idea of current interest rates, Quicken's website has a page listing common loans and interest rates. These are national rate estimates based on particular loan parameters, such as points due at closing and loan-to-value. They'll only be in the ballpark for the rate you'll likely receive.

Lenders often work the assumptions to put a little polish on their rates — and Quicken Loans is no exception. For example, a lender can show a lower interest rate by adding in discount points. The more points paid for, the lower the rate. On the day we checked, Quicken's interest rate page showed points ranging from 1.875 to 2.25 built into the interest rates. That's a little high. Borrowers have paid an average of 0.70 points on loans in the past 12 months, according to the Federal Reserve.

These national rates will give you a general idea of where mortgage rates stand. To get a customized mortgage rate quote from Quicken Loans, you'll need to click on the "Apply Now!" link which takes you to a loan application — and that credit inquiry — at Rocket Mortgage.

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