Ready to dive into the world of home loans? LoanDepot and Rocket Mortgage (formerly Quicken Loans) are major players in the mortgage game, but how do they stack up against each other? Let’s break it down so you can make a decision that won’t make you regret it later.
Who is in the game
Rocket Mortgage:
In 2023, Rocket Mortgage was pumping out 289,000 loans worth a whopping $76.26 billion. They’re the second largest lender in the U.S., and yeah, they spend big on marketing to get there—like, billions since 2020. So, if you’re a newbie looking for a flashy name, Rocket’s got your attention. But beware: higher rates and fees are often part of their game.
LoanDepot:
LoanDepot isn’t exactly slacking either. They originated 65,000 loans totaling $21.48 billion last year, landing them in the top 10 biggest lenders. They’re all about being your “lifetime partner” in homeownership (translation: get money on more refinancing), but recent data breaches have kinda dimmed that shine.
Tomo Mortgage:
Now, let’s talk about Tomo Mortgage. Founded in 2020 by two former Zillow execs, we are growing fast by slashing costs and complexity with innovative technology that allows us to pass savings to our customers.
The nitty-gritty: LoanDepot vs. Rocket Mortgage
| Lender | Loan Depot | Rocket Mortgage | Tomo Mortgage |
| Founded | 2010 | 1985 | 2020 |
| Origination Fees | $4,200 per loan* | $4,700 per loan* | $0 |
| Average Loan Size | $328,000 | $264,00 | $376,000 |
| On-Time Close Rate | Not reported (but they do have a “Close on Time Guarantee,” offering buyers $1,000 if closing is missed) | Not reported | 98% |
| Customer Reviews | 3.1 stars on Consumer Affairs | 3.8 stars on Consumer Affairs | 5.0 stars on Consumer Affairs 4.95 stars on Zillow |
| Employee Reviews | 3.3 stars on Glassdoor | 3.5 stars on Glassdoor | 4.1 stars on Glassdoor |
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: LoanDepot and Rocket Mortgage typically have high fees—around $4,200 and $4,700 on average, respectively. But Tomo Mortgage? Zero fees. That’s over $4,000 in savings right there, and we’re proud of it.
- On-time close rate: This is how often lenders actually close on the promised date. Industry standard? About 40%. But Tomo Mortgage? We’re flexing a 98% on-time close rate. 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. At Tomo Mortgage, our online pre approval only takes 15 minutes, and it includes a soft credit check—making it much more reliable when you’re making an offer on a home.
- Customer satisfaction: Reviews are your best friend here. Rocket Mortgage scores a bit better than LoanDepot, but Tomo Mortgage is off the charts. These numbers reflect real experiences—so pay attention, and dig in.
- Employee reviews: Employee reviews may not appear to have a direct impact on your loan offering, however, comparing how employees at each company rate working there, can give you an inside look into the company morals, reliability, transparency, and more.
So, should you choose LoanDepot or Rocket Mortgage?
So which lender should you go with? One easy thing to consider is if you prefer an in person lender experience, seeing if one of LoanDepot’s 200 branches is near you is a good place to start. But the extra face time doesn’t mean better service: Rocket Mortgage has higher employee reviews and customer reviews than LoanDepot, which could signal better customer service and responsiveness.
Another consideration is fees. Both lenders charge over $4,000 in fees on average. Tomo Mortgage has $0 in lender origination fees.
But 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 either. Tomo Mortgage has lower rates, lower fees, and better reviews. It’s a pretty obvious choice.
*sources: Business Insider Mortgage Reviews: LoanDepot, Rocket Mortgage, and HMDA data from 2023
If you’re ready to start your journey to homeownership, get pre approved with Tomo Mortgage today.