Rocket Mortgage Home Equity Loan Review 2025 |CNBC Select

With the mortgage market in turnaround, many homeowners are looking to tap their home equity rather than sell.

One of the largest home lenders in the U.S., Rocket Mortgage, also has some of the most generous limits on home equity loans: up to $500,000.

We also like that this online lender consistently ranks tops for customer satisfaction with J.D. Power and issues home loans in all 50 states.

Rocket’s home equity loan minimum is $45,000, however, which may be too high if you have a modest home improvement project or other expenses.

A home equity loan allows homeowners to convert the equity they have in their homes into cash. Lenders provide a lump sum, which is repaid over a period of between 10 and 30 years, typically at a fixed interest rate.

The amount you can borrow is based on your credit history and loan-to-value ratio, or the amount you still owe on your mortgage relative to the house’s value.

If you’re approved for a home equity loan, you can use the funds for anything you want. If you put them toward home improvements, however, you may be able to write the interest off on your taxes

Rocket offers home equity loans in all 50 U.S. states and Washington, D.C.

• Repayment terms: 8 to 30 years
• Loan amount: $45,000 to $500,000
• Closing timeline: average of between 14 to 60 days

In addition to a home appraisal, home equity loans from Rocket require:

• Credit score: 680 or better
• Loan-to-value ratio: Up to 80% LTV with a 680 score, 85% with a 700, 90% with a 740 or above.
• Debt-to-income ratio: No more than 50%.

An online lender, Rocket doesn’t have any physical branches. It makes up for that with robust customer service hours, Mondays through Fridays, 7 a.m. to midnight ET; Saturdays 9 a.m. to 8 p.m. ET and Sundays 9 a.m. to 7 p.m. ET.

You can also speak to a human agent via online chat, Mondays to Fridays, 8 a.m. to midnight; Saturdays, 8 a.m. to 9 p.m. and on Sundays 9 a.m. to 8 p.m.

Rocket scored above average for customer satisfaction in J.D. Power’s 2024 mortgage origination survey and took the No. 1 spot for mortgage servicing.

It received an A+ rating from the Better Business Bureau, the agency’s top grade, based on transparency, truthful advertising and how it responds to consumer complaints.

Here’s how Rocket compares to two other home equity loan providers. 

Rocket Mortgage vs. TD Bank

Both Rocket Mortgage and TD Bank lend up to 90% of a borrower’s home value for a HELOAN, but TD Bank posts its rates online and has a flat origination fee of $99.

Rocket does not list its current rates online and charges up to 6% in closing costs, in addition to a $99 origination fee.

If you don’t need much, TD’s minimum home equity loan is only $10,000, while Rocket sets the floor at $45,000.

When it comes to availability, though, there’s no contest: Rocket Mortgage is licensed nationwide, while TD is relegated to 15 states and Washington, D.C.

Rocket Mortgage vs. Discover

One major difference between Discover and Rocket Mortgage (aside from only the former listing its rates online) is that Discover doesn’t charge lender fees or closing costs on home equity loans.

Based on Rocket’s average rates, even a minimum $45,000 home equity loan could be saddled with 6% in closing costs on top of a $99 origination fee.

If you need a larger loan, however, Rocket lends up to $500,000, while Discover caps its loans at $300,000.

You can apply for a Rocket Mortgage home equity loan on its website. or call 833-464-1136.

You’ll need information about yourself, including your address, birth date, employment and income information and Social Security number. You’ll also need to provide a photo ID, tax returns and documentation about the property, including the deed and recent mortgage statements.

After you receive preliminary approval, underwriting will start. You will have to have the home inspected and appraised so that the lender is sure the house is worth what it’s lending you.

You will have to meet a notary in person to sign the final documents, which outline your interest rate and repayment terms, as well as the responsibilities of both the lender and the borrower.

Rocket Mortgage does not currently offer fully remote closings on its loans, but it does offer some form of hybrid closing in each state. That means you’ll have less paperwork to sign in person, and can complete more of the process online.

Once these documents are signed, Rocket will disperse the funds to you. From start to finish, the process will take somewhere between 14 and 60 days.

If you’re looking to take out a large home equity loan, Rocket Mortgage is a terrific option: It combines a generous $500,000 cap with top-notch customer service and a seamless online experience.

But if you have a more modest budget in mind, or prefer to discuss your application face-to-face, you may want to keep looking.

CNBC Select reviews mortgage products using a variety of criteria, including average rates, types of loans offered, terms, availability, fees, down payment options, online experience and customer satisfaction. 

In addition, we incorporate findings from independent sources, including lender scores from the J.D. Power mortgage origination and servicing surveys and ratings from the Better Business Bureau.

For home equity loans, we review the amount of equity required, repayment terms and the minimum and maximum loan amounts available.

We also consider requirements for credit scores, debt-to-income ratios and combined loan-to-value ratio.

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