Rocket Mortgage is not free, but the company does offer competitive rates and various loan options. Like any mortgage lender, Rocket Mortgage charges fees for its services, including origination fees, closing costs, and other potential expenses. Here’s a breakdown of the costs associated with a Rocket Mortgage loan:
1. Origination Fees
Rocket Mortgage charges an origination fee to process your loan. This fee typically ranges from 0.5% to 1% of the loan amount.
2. Closing Costs
Closing costs generally include:
- Appraisal fee (around $300–$600)
- Credit report fee (around $25–$50)
- Title insurance (varies by state)
- Escrow fees
- Recording fees
On average, closing costs range from 2% to 6% of the loan amount.
3. Interest Rates and Points
Rocket Mortgage offers different interest rates based on your credit score, loan amount, and term. You may also pay for discount points to lower your interest rate.
4. Prepayment Penalties
Rocket Mortgage typically does not charge prepayment penalties, allowing you to pay off your loan early without extra costs.
5. Other Potential Fees
Depending on your loan type, you might encounter additional charges such as:
- PMI (Private Mortgage Insurance) if your down payment is less than 20%.
- Late payment fees if you miss a due date.
Is Rocket Mortgage Worth It?
While Rocket Mortgage is not free, it provides a convenient online experience, fast approvals, and competitive rates. However, it’s essential to compare fees with other lenders to find the best deal.
Would you like a cost estimate for a specific loan amount?