Borrowers who have a credit score of 760 or higher can borrow as much as 90% of their home’s value, for example. The specific percentage you’re required to have will depend on how high your credit score is. You need to have 15% to 25% equity built up in your home to qualify for a Rocket Mortgage home equity loan. Rocket Mortgage doesn’t disclose the fees it charges to take out a home equity loan. In addition to a home equity loan, Rocket Mortgage also offers mortgages and refinancing. Even if you have 30% of equity in your home, for example, if your credit score is less than 700, Rocket Mortgage won’t allow you to borrow against all 30%, lowering the loan amount available to you. Homeowners who may not need the entire sum right away will end up paying costly interest on a chunk of money they don’t actually need, adding to the total cost of the loan.Ĭredit score determines loan amount: If you don’t have excellent credit, you can’t borrow against all of the equity you’ve built up in your home, no matter how much you’ve paid up. No home equity line of credit, or HELOC, option: Rocket Mortgage only offers a fixed-rate home equity loan that provides your funds as an upfront lump sum. If your project is something small, such as renovating a guest bathroom, it may not make sense to take out such a large loan. High minimum loan amount: A minimum loan of $45,000 is high, although that depends on what you’re using the funds for.
0 kommentar(er)
