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Rocket Mortgage is the largest home lender in America, both in terms of dollars lent and number of mortgage originations. It offers cash-out refinancing and traditional home equity loans and leads J.D. Power surveys of customer satisfaction. But is it the right fit for your upcoming home equity loan?

This guide will help you answer that question. Read on to find our full analysis of Rocket Mortgage home equity loans, including pros and cons, offerings and factors to consider before deciding.

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Best home equity loans for second homes

Rocket Mortgage offers home equity loans for primary and secondary residences. The lender’s home equity loans could be right for you if you have a vacation home or investment property with equity you want to access. If you have a credit score of 760 or higher, you may be able to borrow up to 90% of your home’s equity even if you don’t live there full time.

Rocket Mortgage home equity loan pros and cons

Pros
  • Offers home equity loans for secondary residences
  • Allows you to borrow up to 90% of your home equity
  • Usually uses fixed interest rates so your payments remain consistent
  • Was the highest-ranked lender for mortgage origination satisfaction in 2022
Cons
  • Has a minimum loan amount of $45,000
  • Requires a FICO score of at least 680 to qualify
  • Doesn't offer home equity lines of credit (HELOCs)

Rocket Mortgage pros explained

Offers home equity loans for secondary residences

Rocket Mortgage’s home equity loans give you access to untapped equity in vacation and investment properties. This makes it possible to get the cash you’re looking for without the risk of a second mortgage on your primary residence. If the real estate market takes a downturn or you face unexpected future financial difficulties, the home you live in won’t be impacted.

Allows you to borrow up to 90% of your home equity

Rocket Mortgage lets you borrow up to 90% of the equity you have built in your home. That’s 10% more than Chase and 5% more than Bank of America. If you need to borrow more, you may want to review how to build equity in a home before moving forward, as you’re unlikely to find a company that will let you borrow more than 90% of your equity.

Usually uses fixed interest rates so your payments remain consistent

When you take out a loan through Rocket Mortgage, your interest rate will usually be fixed throughout the lifespan of the lending agreement. This keeps your monthly payments consistent and predictable, which could decrease your risk of future default.

Was the highest-ranked lender for mortgage origination satisfaction in 2022

J.D. Power’s 2022 Consumer Lending Satisfaction Survey saw Rocket Mortgage take home the top score. Nearly 6,000 customers were polled for the report, which measures overall customer satisfaction across the following six factors:

  • Communication
  • Digital channels
  • Level of trust
  • Loan offering meets my needs
  • Made it easy to do business with them
  • People

To put this result into perspective, Rocket Mortgage earned a score of 750. Chase took second place with a score of 736, while Citi and Fairway Independent tied for third with scores of 733. So not only did Rocket Mortgage win the poll, but it did so by a convincing margin.

Rocket Mortgage cons explained

Has a minimum loan amount of $45,000

One downside to Rocket Mortgage is its $45,000 minimum loan amount. That may be more than you need, and if you borrow extra, you’ll have to pay more in interest.

Requires a FICO score of at least 680 to qualify

Rocket Mortgage home equity loans are not a good fit if you have a low credit score. You need at least a 680 FICO score to qualify for any home equity option from this mortgage lender. Plus, the percentage of home equity that you can borrow scales with your credit score, so even if you meet Rocket Mortgage’s minimum threshold, you may not be able to borrow as much as you want.

If you have a low credit score and want a home equity loan, other options may be a better fit. You can read this guide covering how to get a home equity loan with bad credit to learn more.

Doesn’t offer home equity lines of credit (HELOC)

It’s not currently possible to get a HELOC with Rocket Mortgage. You’ll need to choose another lender if you want a home equity line of credit that you can draw against and repay on an as-needed basis.

Rocket Mortgage home equity loan offerings

You have two home equity options to consider with Rocket Mortgage: home equity loans and cash-out refinancing. Here’s what each offers:

Home equity loans

Home equity loans from Rocket Mortgage are second mortgages on your property. With this option, you’ll have two monthly payments and must pay off two separate loans to own your house outright. This option also carries a higher interest rate than a cash-out refinance, so you pay more to borrow the money you need.

However, you can keep the same interest rate on your original mortgage when you take out a home equity loan. This could be beneficial if your current rate is favorable. Another advantage is that you can borrow more of your home’s equity when you choose a home equity loan. Rocket Mortgage allows qualified homeowners to borrow up to 90% of their home’s equity with a home equity loan but only 80% with cash-out refinancing.

Cash-out refinancing

Unlike home equity loans, cash-out refinancing replaces your current mortgage with a new one. You only need to worry about one monthly payment with this option. Some people use a cash-out refinance to pay off their current mortgage balance and replace it with a new loan that has a better interest rate.

You can also typically expect lower interest rates on your home equity lending agreement with a cash-out refinance. This is because your cash-out refinance loan becomes your new primary mortgage and will be paid off first in the event of foreclosure. That lowers the risk for the lender.

However, there are two main downsides to this borrowing option. The first is that your loan repayment terms will change entirely. So if you had a favorable interest rate on your original mortgage, it will be wiped clean and replaced by the interest rate of your new cash-out refinancing agreement. Moreover, you can only borrow up to 80% of your home equity with this option, compared to 90% with a home equity loan.

Rocket Mortgage home equity loan pricing

Rocket Mortgage will base your equity loan rates on your credit score and other personal details. You can visit the company’s website and input your information into the Rocket Mortgage home equity loan calculator to see what interest rates you may qualify for. Your rates may also change as the Federal Reserve adjusts its prime lending rates.

Also consider home equity loan closing costs. The company doesn’t list these publicly, but according to Rocket Mortgage’s closing cost guide, it’s common to pay between 2% and 6% of the loan amount. This covers the cost of several services, including:

  • Home appraisal fees
  • Credit report retrieval
  • Attorney costs
  • Document preparation
  • Origination fees
  • Notary charges

Rocket Mortgage home equity loan financial stability

Rocket Mortgage’s financial stability isn’t as good as it could be. Moody’s gives the company a Ba1 rating. This is right in the middle of its scale, which ranges from Aaa to C.

Rocket Mortgage home equity loan accessibility

Availability

Rocket Mortgage’s home equity loans are available in all states but Texas. The company also has a $61,000 minimum loan amount for equity loans in Iowa and doesn’t offer its higher-priced loan options in New York, although it doesn’t specify what those options are.

Contact information

You can get in touch with Rocket Mortgage via live online chat or over the phone. The company’s live chat service is available Monday through Friday from 7:00 a.m. to midnight EST and on Saturdays and Sundays from 8:00 a.m. to midnight EST.

You can call for help with an in-process or closed loan at (800) 603-1955, Monday through Friday from 8:30 a.m. to 9:00 p.m. EST and Saturday from 9:00 a.m. to 4:00 p.m. EST. If you need to discuss a new loan, you can call (888) 452-8179, Monday through Friday from 7:00 a.m. to midnight EST, Saturday from 9:00 a.m. to 8:00 p.m. EST and Sunday from 9:00 a.m. to 7:00 p.m. EST.

User experience

Rocket Mortgage’s user experience is in line with what you’d expect from a company offering one of the best home equity loans of 2023. It has broad customer service hours and mobile apps for iOS and Android devices. The company’s website also has many articles to help you learn more about your home equity loan options.

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Rocket Mortgage home equity loan customer satisfaction

Customer satisfaction is a highlight for Rocket Mortgage. It’s the top-rated mortgage lender for customer satisfaction in the latest J.D. Power polls. It also has an A+ rating with the Better Business Bureau (BBB).

Rocket Mortgage home equity loan FAQs

What is Rocket Mortgage?

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Rocket Mortgage is a mortgage loan provider that was founded in 1985 and is headquartered in Detroit. The company offers home loans and refinancing to borrowers in every state but Texas. It was originally called Quicken Loans but changed its name to Rocket Mortgage in 2021.

How does Rocket Mortgage work?

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Rocket Mortgage lends money to people who want to purchase a new home, refinance an existing one or access the cash value of their home equity. It charges interest and various fees for each loan it offers, earning a profit in the process. You can submit a home equity loan application online to see what your monthly payments might look like from this home equity loan lender.

Does Rocket Mortgage do HELOCs?

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No, as of the time of creating this article, there are no Rocket Mortgage HELOC rates or terms to consider. You'll need to go through the loan process with another provider if that's the type of loan you want.

What credit score does Rocket Mortgage use?

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Rocket Mortgage uses your personal credit score to evaluate your reliability as a borrower. Its minimum credit score requirement is 680, but if you want to access the best rates and terms on your mortgage loan, you'll need a score of 760 or higher.

How we evaluated Rocket Mortgage home equity loans

We considered each of the following factors while creating this Rocket Mortgage home equity loan review:

  • Eligibility criteria: We considered how easy it would be for borrowers with different credit profiles to procure home equity loans from Rocket Mortgage.
  • Home equity loan options: We looked at the number of home equity loan options offered by this provider and the flexibility of each.
  • Ratings from independent third-party organizations: We looked at ratings from trusted third-party organizations such as Moody’s and J.D. Power to look objectively at the company and its loan products.
  • Loan amounts and availability: We considered the range of equity loan amounts offered and their availability across the U.S.

These factors may not be all that matter to you as you search for the right home equity loan provider. If you have other considerations in mind, you may need to conduct further research to make your decision.

Summary of Money’s Rocket Mortgage home equity loan review

Rocket Mortgage home equity loans are highly rated for customer satisfaction and are available for investment and vacation properties in addition to primary residences. Rocket Mortgage doesn’t offer home equity lines of credit (HELOCs), and its eligibility criteria make it unsuitable for those with a low credit score. However, it may be the right lender if you’re looking for a large home equity loan or cash-out refinance.

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