On the hunt for a home loan? Rocket Mortgage is surely on your radar, and if you’ve done some shopping you may have heard of Cornerstone Home Lending as well. With all of the lenders out there, who’s really giving you the best bang for your buck? Rocket Mortgage, the flashy private lender, and Cornerstone, the stalwart bank, have their own strengths and weaknesses.
Cornerstone Home Lending: Cornerstone’s got some serious variety when it comes to loan options—they do a solid job balancing conventional, FHA, and VA loans, giving borrowers more flexibility than most lenders. But they’ve had a couple of rough patches recently, with two data breaches in 2023 exposing sensitive info like Social Security numbers and bank accounts. They’ve also faced regulatory scrutiny, including a HUD settlement over a discrimination complaint and some issues with loan underwriting. They’ve got range, but keep an eye on their track record before diving in.
Rocket Mortgage: Rocket Mortgage, formerly Quicken Loans, is a giant digital lender.
We’re certainly curious why Rocket’s refinanced loans accounted for a quarter of their volume—112,710 loans—during a time when rates were among the highest in the last decade. It makes one wonder about the factors that led so many borrowers to refinance under those conditions.
Tomo Mortgage: Launched in 2020, Tomo Mortgage is here to shake up the industry. We offer killer rates, zero lender fees, and a process that’s all about making home buying easy and stress-free. Our customer reviews? 4+ starts on every review platform: Consumer Affairs, Google, Bankrate, Zillow, etc. We’re not just a breath of fresh air—we’re a whole new way of doing things.
The breakdown
| Cornerstone Home Lending | Rocket Mortgage (formerly Quicken Loans) | Tomo Mortgage | |
| Founded | 1988 | 1985 | 2020 |
| On-time Close Rate | Not Reported | Not reported | 98% |
| Lender Fees | Not mentioned on Business Insider Mortgage Reviews | $4,700 per loan* | $0 |
| Customer Reviews | Not mentioned on Consumer Affairs, | 4.1 stars on Consumer Affairs | 5.0 stars on Consumer Affairs |
| Employee reviews | 4.3 stars | 3.5 stars | 4.1 stars |
How to judge mortgage lenders
- Interest rates: Don’t get fooled by flashy numbers. Always compare the “par rate” with 0 points and check out the APR (Annual Percentage Rate). This is your real cost of borrowing, so get the full picture before signing up.
- Lender fees: Also called “origination fees” or “application and processing fees, which Rocket Mortgage charge over $4,700 in per loan. At Tomo Mortgage, we’re lender fee-free, saving you thousands of dollars at closing.
- On-time close rate: This is how often lenders actually close on the promised date. Industry standard? About 40%. But Tomo Mortgage –flexing a 98% on-time close rate, and we’re proud of it. Other lenders don’t even bother to share this info, but it’s a huge deal.
- Pre approvals: While some lenders don’t take the time necessary to prepare a strong pre approval and offer letter, this is critical to making a successful offer on a new home. Tomo Mortgage’s online pre approval only takes 15 minutes, and it includes a soft credit check—but way more reliable when you’re making an offer on a home.
- Customer satisfaction: If you’re finding it tough to trust what lenders are telling you, one of the best ways to gauge their reliability is by looking at reviews from people who were once in your shoes. Did those customers have a smooth experience with the lender? What went right—or wrong?
- Employee reviews: Insights into employee satisfaction can reveal a company’s values and transparency. Unhappy employees often lead to bad overall experiences. (See what their engineers have to say, for example.)
The verdict?
Rocket Mortgage is great if you want a slick, tech-driven experience and don’t mind paying a bit (or a lot) extra for it. Cornerstone Home Lending could feel convenient if you want to explore a variety of loan products and value an in person experience.
For most people the most important factor is the rate. We were curious to see how Tomo Mortgage’s APR (annual percentage rate) stacked up against Rocket Mortgage, so we looked at three Zip codes for two weeks on Nerdwallet (where we could compare apples-to-apples on loan scenarios). Using the median home sale price for each location, a credit score range of fair at 680, and with putting 5% down.
In this scenario, from August 7 to August 20, 2024, Rocket’s average APR was 7.64%, while Tomo Mortgage’s average APR was 6.26%.
So, we’re obviously biased, but we’d say don’t choose Rocket Mortgage or one of the many lenders from Lending Tree. Tomo Mortgage has lower rates, lower fees, and better reviews. It’s a pretty obvious choice.
*sources: Business Insider Mortgage Reviews: Rocket Mortgage, and HMDA data from 2023
If you’re ready to start your journey to homeownership, get pre approved with Tomo Mortgage today.