Do you know the current rocket mortgage home equity loan interest rate before thinking of making that home equity loan application? Have you compared the rates with other home equity loan rates?
Find out all the requirements need to get the rocket mortgage home equity loan. Meanwhile, we will also show you how to calculate your home equity loan.
Looking for a rocket mortgage home equity loan review? Check the article below as we have all the information you might need to help you make a better choice for a loan lender online.
Rocket Mortgage Home Equity Loan Reviews
Home equity is the exact amount or part of your home that you own. In other words, it can be said to be the difference between the amount you owe your lender and the amount you have paid on your mortgage.
Thus, if you are still owing a mortgage on your home, you are only the owner of the percentage that you have paid to the lender while the mortgage lender owns the rest until the loan is fully discharged.
Let us say you secured a home worth $200k with a 20% initial deposit made which is $40k. In this instance, you only own that 20% that you have paid and your lender owns the remaining 80% of the home. So the more mortgage payment you make, the more the equity of your home increases until the 100% is fully paid. Then you can own everything about the home.
Rocket mortgage home equity interest rate changes at all times because the value of homes changes constantly. So you can either increase your home equity by advancing more payments or wait for your home value to increase.
Home equity is strictly based on the appraised value of your home. Thus, your home is simply worth the amount your lender gives it. If there is a great economic impact and the value of your home increases, then it’s a good way to offset your home equity interest.
So if you want to use your home to take out a loan with a rocket mortgage home equity loan, you can just wait for the value to rise as it reduces the rocket mortgage home equity interest rate easily.
Rocket Mortgage Home Equity Loan Requirements
Rocket mortgage home loan experts consider several factors when you apply for your mortgage. They are concerned with accessing your ability to pay back on time.
More so, they are other factors considered for the approval of the loan. They include; income and job, your credit score level, debt-to-income ratio level, assets, and the kind of property you want to acquire.
Let us consider these factors or Rocket mortgage home equity loan requirements below
- Income and Job Records: This is among the major things considered by mortgage home lenders the level of your income and your job history over time. They want to know how much you earn and how much you spend to determine how easy its for you to repay.
- Credit Score: The credit score is usually the number that shows the level of creditworthiness rated with three-digit numbers. Credit reliability means that you can and will pay the loan as of when due or before due.
A low credit score shows that you are a defaulter and you don’t pay back your loan on time. It could also mean that you take too many loans then you can afford to pay. It is the home buyers who have a high credit score that will gain access to rocket mortgage home loan
Other factors that affect your credit score are:
- The kind of credit you have whether its credit cards or loans
- What do you usually do with the credit granted to you
- Whether you have the habit of paying your credit bills on time.
- The total amount that you owe on your credit cards
- The most recent credit tax you have taken and how much it cost.
If you want to obtain a home equity loan, your credit score should be 620 or higher. However, there can be exceptions to this rule.
3. Debt-to-Income Ratio(DTI): When you have a high credit score it increases your Debt-to-income ratio(DTI). DTI means the percentage of your monthly income after deductions of your debt. So to determine or calculate your own DTI simply divide your debts by your monthly gross income.
For example, if your debts, which include your student loans and car loan, reach $2,000 per month and your income is $8,000 per month, your DTI is 25%.
Read More: MyQL Login| Quicken Loans Sign-in @ www.rocketmortgage.com login
DTI requirements vary for different lenders. Conventionally for mortgages, a DTI score of 50% or less is the benchmark for most home equity loans.
4. ASSETS: Home equity loan lenders want to be certain that you have some extra cash in the bank when you apply for the loan. This is to give the lender the assurance or confidence that you will be able to settle your loan to avoid financial issues. The assets to be considered are usually;
- Saving Account
- Retirement Accounts
- Taxable Investments
The factors we just discussed will affect your Rocket Mortgage Home Equity Loan Interest Rate, so you should follow our guidelines to make sure you have the best rate for your home loan.
Is Rocket Mortgage Loan Good For First-Time Home Buyers
First-time home buyers are usually faced with the challenging task of choosing which particular lender with low rates to go with for the first time.
The fear of making expensive lifetime mistakes is also there too. Notwithstanding the above, they are numerous advantages of being a first-time homebuyer.
Although to qualify as a first-time home buyer in the U.S.A, they are certain conditions that should be met.
According to the U.S Department of Housing and Urban Development, the conditions for being a first-time home buyer are as follows;
- An individual who is not and has not owned a principal residence for three years. However, if you have owned a home but your spouse has not, you both can purchase a home together as first-time home buyers.
- A single parent who has owned a home with a former spouse while married.
- An individual who has only owned a principal residence is not permanently affixed to a permanent foundation by applicable regulations.
- An individual who has only owned a property that was not in compliance with state, local, or model building codes—and that cannot be brought into compliance for less than the cost of constructing a permanent structure
Once you have met the conditions above, then you have to decide which loan lender you can go with.
Benefits of choosing Rocket Mortgage Home Equity Loan Interest Rate
Rocket mortgage charges fewer servicing fees as compared to other lenders. There is no single charge placed on you when you are making your payment on your mortgages whether through the phone or online. It is one of the advantages of using rocket mortgage home equity loan
Read More: Rocket Mortgage Phone Number: Contact Customer Care Service
Rocket Mortgage has multiple payment options available for you. The payment options are as follows:
- One-time payment
- Automatic payment
- Biweekly payment
Rocket Mortgage has one of the best customer care which boosts their client experience. The current average for the rocket mortgage home equity loan interest rate is 5.76%.
How to Calculate the Rocket Mortgage Home Equity Loan Interest
Follow the steps below to use the rocket mortgage home equity loan, calculator.
- Go to the official homepage of rocket mortgage to access the calculator
- Choose the mortgage calculator option on the homepage
- Enter the home price which is the cost of the home you intend to purchase
- Enter the down payment amount which is your initial deposit
- Input the loan term which is how long you intend to repay the loan. The longer the term, the higher the interest. A down payment of 20% or more will get you the best rate possible.
- Enter your location
- Choose the include taxes and insurance option if you want the estimate to be made
- Then tap on calculate to show you what your monthly payment would look like based on the details you have provided.
Do Home equity loans have higher Interest rates?
This is the current Rocket mortgage home equity interest rate.
30 year fixed
VA 30 Year Fixed
30 year Jumbo Fixed
FHA 30 Year Fixed
2 ($ 6,000)
15 Year Fixed
Read More: Rocket Mortgage Login: Quicken Loans Account Sign in
I hope we have answered your question about the Rocket Mortgage Home Equity Loan Interest Rate, how to calculate the rate, requirements for first-time homebuyers, and many more. If you love and appreciate what you have read, please share the article on your social media using the sharing button.