Rocket Mortgage Home Equity Loan (HEL) Review

View Rates

Home Equity Loan

• High borrowing limits (up to $800,000 or 90% of equity)
• Solid customer service reputation
• Excellent reviews on Trustpilot
• Available for primary and secondary home

• Limited loan terms (10 or 20 years only)
• Doesn’t publish rates online (must prequalify to view)
• Mandatory closing costs and appraisal

Rates (APR)	Not disclosed
Loan amounts	$45,000 – $500,000
Repayment terms	10 or 20 years
Min. credit score	680

Rocket Mortgage home equity loans are a solid option if your credit score is at least 680 and you have at least $45,000 in home equity. The lender has excellent reviews on Trustpilot, and you can prequalify on its website in just a few minutes to view potential rates. 

However, a third-party appraisal is required, and you’re limited to two term options: 10 or 20 years. Also, Rocket Mortgage does not offer a home equity line of credit (HELOC). 

Table of Contents

1. Rocket mortgage home equity loan interest rates and terms
2. Requirements
3. How long does it take to get a home equity loan from Rocket Mortgage?
4. Company reviews
5. How it compares to alternatives
6. FAQ 

Rocket Mortgage home equity loan interest rates and terms

Rocket Mortgage services most of its loans, this is a test, which means you’re not likely to see your loan get passed to another company when it’s time to make payments. This can be a plus if you like Rocket Mortgage’s customer service during the application process and don’t want that to change.

The lender does not charge prepayment penalties but has fewer term options than some competitors (just 10 or 20 years). Other home equity companies have home equity loans with five- to 30-year repayment terms. 

Also, Rocket Mortgage doesn’t publish sample home equity loan rates online to give you an idea of how much you might pay. You’ll need to prequalify or contact the lender to get rate information.

Here’s a quick summary of the details for Rocket Mortgage home equity loans:

Term	Detail
Rates	Not disclosed
Rate type	Fixed
Loan amounts	$45,000 – $500,000
Repayment period	10 or 20 years
Fees	Closing costs (2% – 6% of loan amount)

Rocket Mortgage home equity loan requirements

Rocket Mortgage has been in operation for over 35 years. It’s transparent about the specific requirements you must meet to get a home equity loan. 

First, you need at least $45,000, the minimum loan amount, in equity. In Iowa, the minimum is $61,000. This requirement is tied to your loan-to-value ratio (LTV), which measures how much you’re borrowing compared to how much your home is worth. 

For example, if your home appraised at $400,000 and you still owed $250,000 on your mortgage, your LTV would be 62.5%: 

$250,000 ÷ $400,000 = 0.625 or 62.5%

In this case, you would qualify for a Rocket Mortgage home equity loan, pending you meet all the other requirements. 

Rocket Mortgage sets different LTV limits based on your FICO credit score: 

Credit score	Max LTV
680 – 699	80%
700 – 739	85%
740+	90%

So if your home was worth $400,000 and you owed $350,000 on your mortgage, your LTV would be 87.5%. In this case, you’d need a credit score of 740 or higher to meet the equity requirement. 

Rocket Mortgage doesn’t list a minimum income requirement on its website. But your debt-to-income ratio should be less than 50%. For example, if you take home $5,000 a month, your debt payments would need to be under $2,500, or 50% of your take-home pay. 

Here’s a quick summary of the requirements for a Rocket Mortgage home equity loan:

Requirement	Details
Min. credit score	680
Min. income	None
Max. DTI	50%
Min. equity	$45,000 ($61,000 in Iowa)
Max. LTV	80%, 85% or 90% (based on credit score)

How long does it take to get a home equity loan from Rocket Mortgage?

It can take two weeks to two months to get a Rocket Mortgage home equity loan. The exact time depends on how soon you provide the paperwork, how long your appraisal takes, and whether you run into any application issues. 

Here’s a more detailed breakdown of the process: 

1. Get preapproved 

Your first step is to prequalify for a home equity loan on the Rocket Mortgage website. This takes as little as seven minutes. During this process, you answer questions about your home, your finances, and how much you’d like to borrow. You can then view rate and loan options before moving on to the next step. This step does not affect your credit score.

2. Meet with a Home Loan Expert

After prequalification, you’ll connect with a Home Loan Expert, who will guide you through the rest of the process. This person will answer your questions, help you choose the best loan option, and explain what documents you’ll need to provide. 

3. Submit your application

If you decide to move forward, the next step is to submit a formal application. This is where you’ll provide all your financial information, including proof of income, tax returns, and bank statements. The lender will also perform a hard credit check, which is added to your credit report.

4. Get your home appraised

Rocket Mortgage will arrange for a professional third-party appraiser to assess your home’s value. This step will determine how much your home is worth and your ability to borrow.

5. Go through underwriting

With your appraisal in hand, the Rocket Mortgage underwriting team will review your application and financial documents to make a final decision on your loan.

6. Close on your Rocket Mortgage home equity loan

If approved, you’ll schedule a closing meeting to sign the final paperwork, and Rocket will disburse the funds to you. You can use the money from a Rocket Mortgage home equity loan for anything, including debt consolidation, school tuition, home improvements, and other major expenses.

Rocket Mortgage home equity loan reviews

Platform	Rating	Number of reviews
Trustpilot	4.7/5	34,961
Better Business Bureau	1.65/5	899
Google	1.7/5	35

Around 97% of the Rocket Mortgage customer reviews we considered are on Trustpilot. These reviews are for all mortgage products (not just home equity loans), but they paint a clear picture of how customers feel about the company. 

The overwhelming majority of ratings are positive. Many Trustpilot reviewers say Rocket Mortgage is professional and helpful. They often mention:

• Quick and easy process
• Clear explanations
• Responsive customer support
• Helpful staff
• Flexible loan options

The lower ratings on the Better Business Bureau and Google make up around 3% of total reviews online. But they show that not everyone’s experience is positive. The most common issues mentioned were related to appraisal concerns and delays in the loan process.

So what does this mean for you? Although many customers have good experiences with Rocket Mortgage, be prepared for potential hiccups. Ask questions, stay involved in the process, and keep in touch with your loan officer to improve your chances of a smooth experience.

How Rocket Mortgage home equity loans compare to alternatives

Rocket Mortgage offers competitive terms for home equity loans, but you might seek alternatives for specific needs or preferences. 

Here’s a look at what other companies can offer:

• Range of loan amounts: LendingTree’s partners may offer home equity loans from  $10,000 to $2 million.
• HELOC options: Figure offers a HELOC, which provides flexible access to funds over time. Depending on your needs, a line of credit might work better than a fixed lump-sum loan.
• More flexible credit requirements: LendingTree has a lower minimum credit score requirement of 620. Spring EQ might loan to borrowers with FICO scores of 640 or better.
• Varied loan terms: Figure and Spring EQ offer term lengths as low as five years and as long as 30 years.

FAQ 

Is Rocket Mortgage good for home equity loans?

Yes. Rocket Mortgage offers competitive terms and a straightforward digital application process. Its fixed-rate home equity loans, with terms of 10 or 20 years, allow qualified borrowers to access up to 90% of their home’s equity.

What is the minimum credit score you need for a home equity loan from Rocket Mortgage?

Rocket Mortgage requires a minimum credit score of 680 to qualify for a home equity loan. Borrowers with higher credit scores may qualify to borrow a greater percentage of their home’s equity.

Is it hard to get a home equity loan from Rocket Mortgage?

Qualifying for a home equity loan from Rocket Mortgage requires a credit score of at least 680, a debt-to-income ratio below 50%, and sufficient home equity. The digital application process is typically smooth and straightforward for those who meet these requirements.