Does Rocket Mortgage (Formerly Quicken Loans) Offer Home Equity Loans?

Rocket Mortgage, formerly known as Quicken Loans, is one of the largest mortgage lenders in the United States. With over 30 years of experience in online lending, Rocket Mortgage offers a variety of mortgage products to meet different homebuyer needs. One common question people have is whether Rocket Mortgage provides home equity loans.

Quicken Loans, now known as Rocket Mortgage, does offer Home Equity Loans. Specifically, they provide a Home Equity Line of Credit (HELOC) and cash-out refinance options to their clients. The company offers these loans online, with eligibility and loan amounts determined by factors such as the borrower’s FICO score and debt-to-income ratio.

Introduction to Rocket Mortgage (Formerly Quicken Loans)

Rocket Mortgage underwent a rebranding from Quicken Loans in 2015. The company wanted to reflect its increasing focus on innovative digital and online lending capabilities. 

Despite the name change, Rocket Mortgage continues to be a leading force in the mortgage industry. They provide mortgage solutions for things like:

• Purchase mortgages
• Refinancing
• Jumbo loans
• Adjustable-rate mortgages
• Government-backed loans (FHA, VA, USDA) 

With fast online applications, mobile app capabilities, and speedy loan processing, Rocket Mortgage aims to provide a smooth mortgage experience.

Does Rocket Mortgage Offer Home Equity Loans?

Rocket Mortgage does provide home equity lending solutions. However, they offer a Home Equity Line of Credit (HELOC) rather than a traditional closed-end home equity loan. 

HELOCs function differently than fixed-rate home equity loans. With a HELOC, you have a revolving line of credit secured by your home equity. It works more like a credit card than a lump sum loan.

Understanding Rocket Mortgage’s Home Equity Line of Credit (HELOC)

Rocket Mortgage’s HELOC gives homeowners access to their equity in the form of an open-ended line of credit. It can be a flexible borrowing option for things like:

• Home improvements
• Debt consolidation 
• Major expenses

Here are some key features of Rocket Mortgage’s HELOC:

• Credit limits up to $500,000 
• Variable interest rates tied to an Index rate
• 10-year draw period followed by 20-year repayment period
• Only pay interest on what you use
• Flexible access to approved credit line

A HELOC allows borrowers to access equity as needed, rather than taking a lump sum upfront. You only pay interest on the amount you draw. When you repay money, that credit becomes available to use again.

Benefits of Rocket Mortgage’s HELOC

Some advantages of getting a HELOC from Rocket Mortgage include:

• Fast online application with lending decision in minutes
• Competitive variable rates starting fairly low
• No application fees or closing costs
• No prepayment penalties if you pay off early
• Credit line can be reused during the draw period

With Rocket Mortgage, you can complete the entire HELOC process online without extensive paperwork. They offer an easy application process and quick access to funds if approved.

How to Apply for a HELOC with Rocket Mortgage

Applying for a HELOC with Rocket Mortgage can be done completely online. Here is an overview of the application process:

1. Gather necessary documents like paystubs, tax returns, property information.
2. Complete the online HELOC application providing personal, income, and property details. 
3. Rocket Mortgage will provide an initial lending decision within minutes.
4. If approved, you’ll need to provide supporting documents and valuation information. 
5. After Rocket Mortgage reviews documentation, you’ll receive a final credit decision.
6. Once approved, you can finalize loan terms and draw on the HELOC.

Minimum eligibility requirements for a Rocket Mortgage HELOC include:

• Credit score of 620 or higher 
• At least 15% equity in the home
• Debt-to-income ratio below 50%

Rocket Mortgage offers a HELOC calculator and online chat support if you have questions during the application process.

Alternatives to Home Equity Loans at Rocket Mortgage

While Rocket Mortgage offers HELOCs, they don’t provide fixed-rate home equity loans. Here are some alternatives for borrowing against home equity with Rocket Mortgage:

1. Cash-Out Refinance

With a cash-out refinance, you replace your current mortgage with a larger loan to tap your home’s equity. The cash is issued to you in a lump sum at closing.

2. Personal Loan

Rocket Mortgage’s partner company Rocket Loans provides personal installment loans. These unsecured loans have fixed rates and terms.

3. Credit Card

Rocket Mortgage refers credit card products from partner companies. A credit card cash advance could provide revolving access to funds.

Conclusion: Is a HELOC from Rocket Mortgage Right for You?

Rocket Mortgage can be a solid option for homeowners seeking a HELOC. Key benefits include fast online applications, competitive rates, and flexible access to equity. Just keep in mind it is a revolving line of credit, not a closed-end home equity loan. 

Analyze your borrowing needs and compare costs to determine if a Rocket Mortgage HELOC aligns with your financial situation. Their online process makes it easy to check rates and see if you pre-qualify. For other ways to leverage home equity, consider their cash-out refinance or personal loan products.

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