Quicken Loans is one of America’s biggest mortgage lenders, and stands out for having exceptional customer satisfaction scores.
Part of the reason borrowers love Quicken is for its industry-leading online resources. Its helpful tools make the mortgage process feel more accessible for many buyers.
Quicken also owns the Rocket Mortgage brand (“push button, get mortgage”), which we reviewed separately.
Unless you strongly prefer a person-to-person interaction over websites and phones, you’ll likely want Quicken on your shortlist of lenders.
Just make sure you check rates from a few different lenders before buying, so you can be confident you’re getting the best deal on your mortgage.
Compare Quicken Loans mortgage rates
Quicken mortgage rates were about average in 2019 — neither the highest nor the lowest among major lenders.
Rates have fallen to new lows since 2019, so this table does not reflect the rates you’re likely to be offered. But you can use it as a tool to compare lenders side by side.
Average 30-year mortgage rates at major banks
Bank of America
Average 30-Year Interest Rate, 2019
Monthly P&I Payment
Median Loan Costs, 2019
Median Origination Charges, 2019
One thing that’s important to note is that Quicken’s advertised rates usually assume you’ll “buy down” your interest rate using discount points.
So as with any lender, make sure you get written, formal quotes which include closing costs and fees.
That way, you can see which lender is really the best deal for you when all the costs are tallied up.
Average rate and fee data are sourced from public records required by the Home Mortgage Disclosure Act (HMDA).
*Monthly principal and interest payment based on a $250,000 home price, with 20% down, at each lender’s average 30-year interest rate for 2019. Your own rate and monthly payment will vary.
Quicken Loans refi rates
Quicken Loans refinance rates are on par with its mortgage rates. So you can use the comparison table above as a guide if you’re looking to refinance with Quicken.
Note that Quicken’s rates tend to be a little higher than industry average, and the same is true for refinancing.
But this is also the best-rated company for customer satisfaction — and many are willing to pay a bit more for the ease of working with a company that puts service first.
Quicken Loans discount points
When you compare rates between mortgage companies, pay attention to Quicken Loans discount points.
“Discount points” are an extra cost you pay at closing to buy down your mortgage rate. One point typically costs 1% of your loan amount. And Quicken usually includes more discount points in its advertised rates than many other companies.
For example: You might see Quicken’s 30-year fixed rate advertised at 3.75%, with 2.125 points due at closing (an actual rate at the time of writing this).
That means with a loan amount of $250,000, you’d have to pay approximately $5,300 at closing to get your rate that low.
Without paying for 2.125 points, that rate would likely be closer to 4.25% instead.
Quicken Loans mortgage review for 2020
Quicken consistently tops customer satisfaction charts, has an A+ rating from the Better Business Bureau, and claims that 96 percent of its customers say they’d recommend it to others.
It’s also taken home the top customer satisfaction score in J.D. Power’s mortgage customer survey — for ten years in a row.
So, just how does Quicken keep up its stellar reputation?
In short, by streamlining the mortgage application process using technology.
Quicken also backs its online tools with real-live mortgage experts, ready to provide advice over the phone or by email.
However, if you prefer an in-person experience, this lender won’t be for you. It doesn’t do face-to-face meetings.
It also seems to prefer dealing with mainstream customers rather than those who need special help.
So you might have to look elsewhere if your credit score is below 620 or if you’re burdened by lots of existing debt.
Working with Quicken Loans
Quicken Loans was one of the first companies to offer web-based mortgage borrowing at the turn of the century. And it’s largely maintained its lead ever since.
If you enjoy technology, Quicken’s Rocket Mortgage offering will be particularly appealing.
That lets you carry out even more tasks online — including e-signing your loan documents.
And Rocket’s back-office functionality can automatically verify much of the information you provide in your application. That speeds up the process and takes some of the administrative burden off your shoulders.
But technophobes aren’t excluded. Quicken Loans will let you apply and manage the loan process using the phone, email, fax, and snail mail. You just won’t get to look its people in the eye.
Finally, the company’s RateShield Approval offering lets you get pre-approved for a loan. And it can fix your rate for 90 days while you find the home you want.
Actually, “fix” isn’t the right word. Your rate will stay the same if mortgage rates rise but can still move down if they fall.
Quicken customer service reviews
It’s hard to overstate Quicken Loans’s exceptional levels of customer service. Because compared to the rest of the industry, this lender really does stand out.
Quicken Loans ratings
Quicken Loans is one of the highest-rated mortgage companies. In 2019, it scored the top rating on J.D. Power’s customer satisfaction survey. That was it’s tenth consecutive year in the number one spot.
Mortgage-related complaints at major lenders
Mortgage Originations 2019
Complaints per 1,000 Mortgages
2019 JD Power Rating
Bank of America
Mortgage loan products at Quicken Loans
You don’t get to be the biggest lender with a small portfolio of products. So it’s no surprise that Quicken Loans has a good selection, including:
- 30-year, fixed-rate mortgage (FRMs) — The most popular type of home loan
- “Yourgage” — Still an FRM, but you get to choose any term you want from eight to 29 years. This is more flexible than almost any other lender
- Adjustable-rate mortgage (ARMs) — These start off cheaper, but come with the risk they’ll get more expensive if market rates go up. You can limit that risk by fixing your rate for the first five, seven or 10 years
- FHA loan — This government-backed loan lets you make a down payment as low as 3.5 percent. And you may qualify with a low credit score (620+). But you’ll have to pay mortgage insurance every month till you move or refinance
- VA loan — Zero down payment needed, low credit bar, and no continuing mortgage insurance payments. But you have to be an active service member, veteran or in one of the other eligible groups to qualify
- Jumbo loan — When you need to borrow more than most mortgages allow — which is currently $510,400. Get up to $3 million, if you can afford it
Quicken Loans also offers reverse mortgages to those 62 years and older.
These let you access the equity in your home without selling. And you don’t have to make any monthly payments. But the cumulative borrowing costs may mean you won’t have much equity to leave your heirs.
Where can you get a mortgage with Quicken Loans?
NMLS ID: 3030
Quicken Loans has no brick-and-mortar outlets where you can apply for a mortgage.
If you’re going to go with this lender, you need to be comfortable doing so with no face-to-face encounters.
However, you don’t need to use a computer or device beyond making initial contact, if you prefer not to.
After requesting a call online, you can use the phone, email, fax, and postal service all the way up to closing.
But that rather defeats this company’s point. As this Quicken Loans mortgage lender review makes clear, it’s great at all things digital.
Choosing Quicken and avoiding its web-based services is like going to Disneyworld and avoiding the park’s attractions.
Quicken Loans FAQ
By its own estimate, Quicken Loans closing costs are usually 3-6% of the loan amount. That could be a bit higher than average. Most of the industry estimates 2-5% of the loan amount for closing costs.
However, costs vary a lot depending on your loan amount, location, property taxes, seller concessions, and so on. So it’s impossible to make a blanket statement about whether Quicken Loans closing costs are too high. To see for yourself, you’ll have to compare loan estimates from Quicken and a few other companies side by side.
Quicken Loans works a little differently than most mortgage companies. It’s primarily a digital lender, so must customers will apply online — likely through its Rocket Mortgage platform. In fact, you’re unlikely to meet with a Quicken loan officer in person until it’s time to sign your closing documents. In some states, Quicken/Rocket even let you e-sign your loan documents and skip the in-person meeting altogether. You can get a loan estimate from Quicken here.
Quicken Loans uses your FICO credit score to determine your eligibility for a mortgage.
Yes — Quicken Loans is a safe and legitimate company to use as your mortgage lender. It might seem a bit strange to apply for such a big loan online, without meeting face-to-face with a loan officer. However, Quicken Loans is an established company that’s licensed in all 50 states. It was the biggest residential mortgage lender in the U.S. in 2018, and hasn’t had any major scandals or borrower issues according to NMLS.
Quicken Loans does not offer home equity lines of credit. However, Quicken does do cash-out refinancing. A cash-out refinance an alternative to a home equity line of credit for tapping into your home equity.
Quicken Loans owns Rocket Mortgage. But they’re not exactly the same thing. Rocket Mortgage is the online portal for Quicken — so most customers will apply and manage their loans through Rocket. But Quicken actually processes the loans. They do the “back-end” work of figuring out whether you qualify for a mortgage and how much you’ll pay.
Quicken Loans does not charge you to get pre-qualified for a mortgage. But it does charge for pre-approval. That’s because the pre-approval process is more involved than pre-qualification. It involves more work on Quicken’s part, like pulling a credit score and verifying your income and assets. For pre-qualification, Quicken will simply ask you a few questions about your income and credit and tell you how much you can afford. You can get started here.
Is Quicken the best mortgage lender for you?
If you choose Quicken for your mortgage, you’re in good company. This lender has rapidly become one of the most popular in the U.S. thanks to its seamless, digital-first mortgage process.
But remember not to choose a lender based on the ease of application alone. You should also compare rates from a few companies and make sure you get the best deal.
You can get started right here.
Published at Fri, 25 Sep 2020 11:30:14 +0000