Quicken Loans Mortgage Review 2020
Quicken Loans Mortgage Review 2020
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- About Quicken Loans
- Quicken Loans Mortgage Products
- Quicken Loans Mortgage Fees
- Quicken Loans Mortgage Customer Service
- How to Apply for a Quicken Loans Mortgage
About Quicken Loans
Quicken Loans was founded by Dan Gilbert in 1985, initially under the name Rock Financial. The company started as a brick-and-mortar lender with locations primarily in the Midwest. As Quicken Loans grew, it pivoted its focus to online lending and began to originate mortgages across the U.S.
In 2015, Quicken Loans introduced Rocket Mortgage, the industry's first 100% online mortgage experience. Today, 98% of Quicken Loans’ mortgages use the online platform.
Quicken Loans surpassed Wells Fargo in 2017 to become the nation’s largest home mortgage lender. The company continues to hold the honor, originating $145 billion in mortgages in 2019.
The company also scores high marks in customer service. J.D. Power has ranked Quicken Loans highest in mortgage origination satisfaction for 11 consecutive years. The Detroit-based company employs more than 19,000 workers and produces its loans from centers located in Detroit, Cleveland, Phoenix and Charlotte, N.C.
Quicken Loans Mortgage Products
Purchase
• Conventional loans. Quicken Loans offers conventional mortgages (non-government loans that follow Fannie Mae and Freddie Mac lending guidelines). Customers can choose between 15- and 30-year, fixed-rate terms. Quicken Loans also offers YOURgage®, their branded fixed-rate conventional loan with customizable terms ranging from 8 to 29 years.Borrower requirements include a minimum credit score of 620, a debt-to-income ratio (DTI) of 50% or less and a 3% down payment for fixed-rate options.
• FHA loans. As one of the country’s largest Federal Housing Administration (FHA) lenders by volume, Quicken Loans offers fixed-rate FHA loans for 15- or 30-year terms. Borrowers must have a credit score of at least 580, a DTI of 31% or less and make a 3.5% down payment.
• VA loans. Quicken offers loans backed by the U.S. Department of Veterans Affairs (VA), with fixed -rate loan terms. VA loans are for qualified veterans, active-duty service members and their eligible spouses. Borrower requirements include a minimum credit score of 620 and a DTI of 45% or less. Additionally, borrowers must present a VA certificate of eligibility confirming their military service.
• Jumbo loans. For borrowers looking to finance homes above the Fannie Mae and Freddie Mac conforming loan limits, jumbo loans provide fixed-rate financing up to $2 million. Borrowers must put down at least 20%.
Quicken Loans doesn’t currently offer mortgages guaranteed by the U.S. Department of Agriculture (USDA) to low- and moderate-income borrowers in rural areas.
Refinance
• Cash-out refinance loans. Quicken Loans offers conventional cash-out refinances to borrowers looking to access the equity in their homes. Options include fixed-rate and adjustable-rate loans depending on the type of loan program you select.
• Rate-and-term refinance loans. Borrowers who want to reduce their interest rate or change the term length on their loan can choose this option. Quicken Loans offers both fixed-rate and adjustable-rate options.
• FHA streamline refinance loans. FHA borrowers can refinance their loan to a lower rate and new term without an appraisal or the full documentation that’s required on conventional refinances. As with FHA purchase loans, both fixed-rate and adjustable-rate loans are available.
• VA refinance loans. VA borrowers can refinance their loan up to 100% of the value or up to 120% if they don’t plan to take cash out.
Quicken Loans special mortgage programs
• YOURgage®. Quicken Loans’ YOURgage® is a fixed-rate conventional loan that gives borrowers the flexibility of choosing any loan term between 8 and 29 years. Borrower requirements include a minimum 620 credit score, DTI of 50% or less and a 3% down payment.
• PMI Advantage. The company offers alternatives to paying monthly private mortgage insurance (PMI) to borrowers who put down less than 20% on conventional loans. Customers can choose to pay PMI at closing as a one-time payment or select lender-paid PMI in exchange for a slightly higher interest rate.
Quicken Loans Mortgage Fees
Quicken Loans’ website doesn’t list the fee schedule for its loans. Typically for mortgages, though, borrowers can expect to pay between 0.5% to 1% of the loan amount in origination fees, and roughly 1% to 6% in total closing costs, depending on the loan size.
The interest rates on Quicken Loans products typically include discount points. To get the published rate, borrowers will need to pay an upfront fee at closing.
Quicken Loans Mortgage Customer Service
Quicken Loans is known for its outstanding customer service. The company has ranked highest in the J.D. Power U.S. Primary Mortgage Origination Satisfaction Study for 11 consecutive years. Additionally, Quicken Loans has ranked No. 1 in the J.D. Power U.S. Primary Mortgage Servicer Satisfaction Study for seven straight years. Quicken Loans services 99% of the mortgage loans it originates.
The company has a clear advantage over its competitors in customer service. Data from the Consumer Financial Protection Bureau (CFPB) shows that the company receives a lower rate of mortgage-related complaints than other banks and lenders, especially considering its large loan volume.
Mortgage-Related Complaints at Major Banks, 2017-2019
| Company | Mortgage Originations | CFPB Complaints | Percentage of Total Originations Resulting in Complaints | 2019 J.D. Power (based on 1,000-point scale) |
|---|---|---|---|---|
| Quicken Loans | 1,301,000 | 537 | .04% | 880 |
| JPMorgan Chase | 464,000 | 2,355 | .51% | 850 |
| Wells Fargo | 748,000 | 5,434 | .73% | 837 |
| Bank of America | 333,000 | 2,465 | .74% | 843 |
How to apply for a Quicken Loans mortgage
• Loan application. Borrowers can apply for a mortgage using Quicken Loan’s digital platform, Rocket Mortgage, or with one of the company’s Home Loan Experts via phone. Borrowers who use Rocket Mortgage will create an account and can conduct the entire loan process online. The initial process is user-friendly and can take as few as two minutes to complete.
• Preapproval. Quicken Loans offers two levels of preapproval as a part of their Power Buying Process. Borrowers can receive a “Prequalified Approval” almost immediately through their Rocket Mortgage account or a “Verified Approval,” based on income and asset verification, which is as strong as a cash offer when looking for homes. Typically, the company issues a Verified Approval within 24 hours of receiving a borrower’s paperwork.
• Locking in your interest rate. Loan applicants can take advantage of Quicken Loans’ Rate Shield program, which is a mortgage rate lock for up to 90 days. If the rate is lower when the borrower submits a purchase agreement, they will receive the reduced rate. At that time, the loan rate is locked for an additional 40 to 60 days.
• Loan processing. Borrowers using Rocket Mortgage technology can conduct the entire process online or through the app, including receiving loan disclosures, signing documents and submitting financial information. Quicken Loans eliminates paperwork by enabling customers to import their financial data. Rocket Mortgage allows borrowers to complete much of the process without speaking to anyone. However, the company’s home loan experts are available to anyone needing support. Customers can see real-time updates as the loan progresses.
• Appraisal process. Quicken Loans can arrange the property appraisal through a third party.
• Closing. Borrowers have the convenience of scheduling their closing online and will receive all terms and paperwork ahead of time through the Rocket Mortgage platform. Loan servicing. Quicken Loans services 99% of the loans they originate, so you’ll continue to experience their excellent customer service throughout the life of the loan.
Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.