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Before being approved for a mortgage from Quicken Loans, the borrower will be requested to make a deposit between $400 - $750. A "deposit agreement" is sent to the borrower to brief them of the actual amount. The deposit is used for Quicken Loans to gain access to their credit report, process their loan, and conduct an appraisal of their property.
After the credit report is handed in to show the borrower's credit score, loan processing commences and that involves fees for underwriting, third-party affiliates (i.e. escrows, real estate agent, etc.) and insurance. If the borrower has home equity, they can use some of it as credit for a bigger down payment, lower interest costs, and shorter loan terms. This is why the cost of a Quicken Loans hiring an independent appraisal is part of the deposit the borrower makes.
Quicken Loans has eight mortgage plans with slight variations in between, these include adjustable-rate mortgages (ARMs), fixed-rate mortgages, FHA loans, VA loans, FHA Streamline, reverse mortgages, and YOURgage. The reason for this abundant number of loans and their variations is Quicken Loans' understanding of different borrowers' financial situations, with different mortgage plans better suited to accommodate to certain credit holders than others.
Below is a list of each mortgage plan and what distinguishes it from the rest. Find the one that's right for you and you'll be on your way to meeting your financial goals.
ARMs offer homeowners more flexibility and custom options than other loans due to their variety. They're most famous for their extremely low initial interest rates which begin to change after the first adjustment period - typically between 1 and 5 years. This quality makes ARMs ideal for homeowners willing to relocate in a few a years since it gives them enough flexibility to refinance accordingly.
Excellent for current or prospective homeowners, FHA loans give applicants with small down payments and unsatisfactory credit a fighting chance to build wealth. Moreover, you can reduce the sum of your principal, mortgage insurance, and interest by 5% with an FHA Streamline refi 210 days after your original FHA loan.
For more information on an FHA Streamline refi, click here.
A strong contrast to ARMs, fixed-rate mortgages may have higher rates and, thus, greater monthly installments but they remain fixed for the full life of the loan - in this case, it's 30 years of consistent rates. This feature of a fixed loan allows a homeowner to plan and budget effectively, making it flexible in its own way. Quicken Loans also have a 15-year fixed option for homeowners that are interested.
Where most loans will require a mortgagor to have a debt-to-income of 36% at the most, VA loans allow mortgagors to have a DTI of 44% and less. Much like FHA loans' conditions, VA requirements are even more lenient towards their applicants. The only additional rules applied are there to make the loan exclusive to military personnel, members of the National Guard, and their families.
Click here to learn more about these conditions.
Most mortgage plans are restricted by Fannie Mae and Freddie Mac's loan limit of $417,000 in "general" areas, and $625,500 in "high cost" areas. Jumbo loans have gained a large following because of the amount of cash they readily provide, and this trend is going to continue. Although jumbos have rates that are 0.25% higher than the rest, that number is the lowest we've seen in years, and it will continue to drop as long as the trend continues.
Exclusive to seniors nearing retirement with mortgages they've almost completely paid off, reverse mortgages are loans of up to $625,000 in size. Apart from the notable advantages listed below, homeowners are only obligated to pay the price of their home and not a penny more since negative equity does not apply in the case of a reverse mortgage. Withdrawing cash from this kind of mortgage can be in the form of a lump sum, tenure payment, term payment, or a line of credit.
Interested in reverse mortgages? Learn more about them here.
Quicken Loans' very own YOURgage gives unrivaled flexibility regarding loan terms. You're not limited to a select a few number of years in which you're forced to pay off your mortgage. YOURgage lets you choose any number of years between 8 and 30, and since the rates change according to the number of years that apply, you have the freedom to go with the number of years and rates you're most comfortable with.
|Comparing Quicken Loans' Mortgages|
|Mortgage Type||Precitable Interest Rates||Plan Flexibility||Lower Down Payment||Ease of Eligibility|
Lots of new words? Consult our comprehensive mortgage glossary to clear any confusion.
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