{"id":3464,"date":"2024-08-26T09:19:39","date_gmt":"2024-08-26T14:19:39","guid":{"rendered":"https:\/\/tomo.com\/blog\/?p=3464"},"modified":"2025-02-10T13:45:16","modified_gmt":"2025-02-10T18:45:16","slug":"loandepot-vs-rocket-mortgage","status":"publish","type":"post","link":"https:\/\/tomo.com\/blog\/loandepot-vs-rocket-mortgage\/","title":{"rendered":"LoanDepot vs. Rocket Mortgage"},"content":{"rendered":"\n<p>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\u2019s break it down so you can make a decision that won\u2019t make you regret it later.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Who is in the game<\/h3>\n\n\n\n<p><\/p>\n\n\n\n<p><strong>Rocket Mortgage:<\/strong> <\/p>\n\n\n\n<p>In 2023, Rocket Mortgage was pumping out 289,000 loans worth a whopping $76.26 billion. They\u2019re the second largest lender in the U.S., and yeah, they spend big on marketing to get there\u2014like, billions since 2020. So, if you\u2019re a newbie looking for a flashy name, Rocket\u2019s got your attention. <strong>But beware: higher rates and fees are often part of their game.<\/strong><\/p>\n\n\n\n<p><\/p>\n\n\n\n<p><strong>LoanDepot:<\/strong> <\/p>\n\n\n\n<p>LoanDepot isn&#8217;t exactly slacking either. They originated 65,000 loans totaling $21.48 billion last year, landing them in the top 10 biggest lenders. They\u2019re all about being your \u201clifetime partner\u201d in homeownership (translation: get money on more refinancing), <strong>but recent <a href=\"https:\/\/www.prnewswire.com\/news-releases\/privacy-alert-loandepot-under-investigation-for-data-breach-of-16-6-million-customer-records-302045209.html\" title=\"data breaches\">data breaches<\/a> have kinda dimmed that shine.<\/strong><\/p>\n\n\n\n<p><\/p>\n\n\n\n<p><strong>Tomo Mortgage:<br><\/strong>Now, let\u2019s 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.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/tomo.com\/mortgage\/rates\">See today&#8217;s rates<\/a><\/div>\n<\/div>\n\n\n\n<p><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">The nitty-gritty: LoanDepot vs. Rocket Mortgage<\/h3>\n\n\n\n<p><\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td>Lender<\/td><td>Loan Depot<\/td><td>Rocket Mortgage<\/td><td>Tomo Mortgage<\/td><\/tr><tr><td>Founded<\/td><td>2010<\/td><td>1985<\/td><td>2020<\/td><\/tr><tr><td>Origination Fees<\/td><td>$4,200 per loan*<\/td><td>$4,700 per loan*<\/td><td>$0<\/td><\/tr><tr><td>Average Loan Size<\/td><td>$328,000<\/td><td>$264,00<\/td><td>$376,000<\/td><\/tr><tr><td>On-Time Close Rate<\/td><td>Not reported (but they do have a \u201cClose on Time Guarantee,\u201d offering buyers $1,000 if closing is missed)<\/td><td>Not reported<\/td><td>98%<\/td><\/tr><tr><td>Customer Reviews<\/td><td><a href=\"https:\/\/www.consumeraffairs.com\/finance\/loandepot.html\">3.1 stars<\/a> on Consumer Affairs <\/td><td><a href=\"https:\/\/www.consumeraffairs.com\/finance\/rocket-mortgage.html\">3.8 stars<\/a> on Consumer Affairs <\/td><td><a href=\"https:\/\/www.consumeraffairs.com\/finance\/tomo.html?#scroll_to_reviews=true\">5.0 stars<\/a> on Consumer Affairs <br><a href=\"https:\/\/www.zillow.com\/lender-profile\/hellotomo\/\">4.95 stars<\/a> on Zillow<\/td><\/tr><tr><td>Employee Reviews <\/td><td><a href=\"https:\/\/www.glassdoor.com\/Reviews\/loanDepot-Reviews-E375743.htm\">3.3 stars<\/a> on Glassdoor <\/td><td><a href=\"https:\/\/www.glassdoor.com\/Reviews\/Rocket-Companies-Reviews-E7856.htm\">3.5 stars<\/a> on Glassdoor<\/td><td><a href=\"https:\/\/www.glassdoor.com\/Reviews\/Tomo-Reviews-E5526789.htm\">4.1 stars<\/a> on Glassdoor <\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p><\/p>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/tomo.com\/mortgage\/app\/preapproval\">Get a personalized rate quote<\/a><\/div>\n<\/div>\n\n\n\n<p><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">How to judge mortgage lenders<\/h3>\n\n\n\n<p><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Interest rates:<\/strong> Don\u2019t get fooled by flashy numbers. Always compare the \u201cpar rate\u201d with 0 points and check out the <a href=\"https:\/\/tomo.com\/blog\/what-are-apr-and-interest-rates-which-is-more-important\/\" title=\"APR (Annual Percentage Rate)\">APR (Annual Percentage Rate)<\/a>. This is your real cost of borrowing, so get the full picture before signing up.<\/li>\n<\/ul>\n\n\n\n<p><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Lender fees:<\/strong> LoanDepot and Rocket Mortgage typically have high fees\u2014around $4,200 and $4,700 on average, respectively. But Tomo Mortgage? Zero fees. That\u2019s over $4,000 in savings right there, and we&#8217;re proud of it. <\/li>\n<\/ul>\n\n\n\n<p><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>On-time close rate<\/strong>: This is how often lenders actually close on the promised date. Industry standard? About 40%. But Tomo Mortgage? We\u2019re flexing a 98% on-time close rate. Other lenders don\u2019t even bother to share this info, but it\u2019s a huge deal.<\/li>\n<\/ul>\n\n\n\n<p><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Pre approvals:<\/strong> While some lenders don\u2019t 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&nbsp;<a href=\"https:\/\/tomo.com\/blog\/how-to-get-pre-approved-for-a-mortgage\/\">pre approval<\/a>&nbsp;only takes 15 minutes, and it includes a soft credit check\u2014making it much more reliable when you\u2019re making an offer on a home.<\/li>\n<\/ul>\n\n\n\n<p><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Customer satisfaction:<\/strong> 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\u2014so pay attention, and dig in.<\/li>\n<\/ul>\n\n\n\n<p><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Employee reviews: <\/strong>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.&nbsp;<\/li>\n<\/ul>\n\n\n\n<p><\/p>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/tomo.com\/mortgage\/app\/preapproval\"><strong>Get pre approved <\/strong><\/a><\/div>\n<\/div>\n\n\n\n<p><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">So,<strong> <\/strong>should you choose LoanDepot or Rocket Mortgage? <\/h3>\n\n\n\n<p><\/p>\n\n\n\n<p>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\u2019s 200 branches is near you is a good place to start. But the extra face time doesn\u2019t mean better service: Rocket Mortgage has higher employee reviews and customer reviews than LoanDepot, which could signal better customer service and responsiveness. <\/p>\n\n\n\n<p><\/p>\n\n\n\n<p>Another consideration is fees. Both lenders charge over $4,000 in fees on average. Tomo Mortgage has $0 in lender <a href=\"https:\/\/tomo.com\/blog\/what-is-a-origination-fee\/\" title=\"origination fees.\">origination fees.<\/a><\/p>\n\n\n\n<p><\/p>\n\n\n\n<p>But for most people the most important factor is the rate. We were curious to see how Tomo Mortgage\u2019s APR (annual percentage rate) stacked up against Rocket Mortgage, so we looked at three Zip codes for two weeks on<a href=\"https:\/\/www.nerdwallet.com\/m\/mortgages\/compare-top-mortgage-lenders-3?bucket_id=Best+Money+3&amp;gad_source=1&amp;gclid=Cj0KCQjw8MG1BhCoARIsAHxSiQmyTFx_KrcntnblXiG1k96sYJV4xeMNCa5yaWfQiC6uP1epo6WxPx8aAsF8EALw_wcB&amp;gclsrc=aw.ds&amp;mktg_body=656717844847&amp;mktg_hline=148151861963&amp;mktg_link=&amp;mktg_place=kwd-313067967099&amp;model_execution_id=9A3BAE6C-54E7-42DA-AEDC-93F64782D4E0&amp;nw_campaign_id=1190295&amp;utm_campaign=mr_mktg_paid_032823_brand%3Ae%3Ahi&amp;utm_content=c&amp;utm_medium=cpc&amp;utm_source=goog&amp;utm_term=nerdwallet+mortgage+rates\" title=\" Nerdwallet \"> Nerdwallet <\/a>(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.&nbsp;<\/p>\n\n\n\n<p><\/p>\n\n\n\n<p><strong>In this scenario, from August 7 to August 20, 2024, Rocket&#8217;s average APR was 7.64%, while Tomo Mortgage&#8217;s average APR was 6.26%.&nbsp;<\/strong><\/p>\n\n\n\n<p><\/p>\n\n\n\n<p>So, we\u2019re obviously biased, but we\u2019d say don\u2019t choose either. Tomo Mortgage has lower rates, lower fees, and better reviews. It\u2019s a pretty obvious choice.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<p>*sources: Business Insider Mortgage Reviews: <a href=\"https:\/\/www.businessinsider.com\/personal-finance\/mortgages\/loan-depot-mortgage-review\" title=\"LoanDepot\">LoanDepot<\/a>, <a href=\"https:\/\/www.businessinsider.com\/personal-finance\/mortgages\/rocket-mortgage-review\" title=\"Rocket Mortgage\">Rocket Mortgage<\/a>, and <a href=\"https:\/\/richeymay.com\/insights\/hmda-market-share-dashboards\/\" title=\"HMDA\">HMDA<\/a> data from 2023<\/p>\n\n\n<div style=\"padding-top:var(--wp--preset--spacing--30);padding-bottom:var(--wp--preset--spacing--30);padding-left:var(--wp--preset--spacing--30);padding-right:var(--wp--preset--spacing--30);margin-top:var(--wp--preset--spacing--30);margin-bottom:var(--wp--preset--spacing--30);margin-left:0;margin-right:0;\" class=\"has-link-color wp-elements-c54b177fd5d2f341f8967a20726f2ac0 wp-block-post-author has-text-color has-contrast-color has-background has-tertiary-background-color has-large-font-size\"><div class=\"wp-block-post-author__content\"><p class=\"wp-block-post-author__name\"><a href=\"https:\/\/tomo.com\/blog\/author\/clairegtomonetworks-com\/\" target=\"_self\">Claire Gallaudet<\/a><\/p><p class=\"wp-block-post-author__bio\">Claire is a Mortgage Analyst at Tomo, where she explores the data and trends shaping the housing market. She is especially interested in how economic forces impact homebuyers. A Seattle native, she now lives in Austin, where she balances analysis and communications with teaching yoga and walks around the lake with her dog.<\/p><\/div><\/div>\n\n\n<p>If you&#8217;re ready to start your journey to homeownership, <a href=\"https:\/\/tomo.com\/mortgage\/app\/preapproval\" title=\"\">get pre approved with Tomo Mortgage today.<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>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\u2019s break it down so you can make a decision that won\u2019t make you regret it later. Who is in the game Rocket [&hellip;]<\/p>\n","protected":false},"author":31,"featured_media":3766,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[286],"tags":[],"class_list":["post-3464","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-lender-reviews"],"aioseo_notices":[],"jetpack_featured_media_url":"https:\/\/tomo.com\/blog\/wp-content\/uploads\/2024\/08\/loan-depot-vs-rocket-tomo-jpg.webp","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/tomo.com\/blog\/wp-json\/wp\/v2\/posts\/3464","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/tomo.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tomo.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/tomo.com\/blog\/wp-json\/wp\/v2\/users\/31"}],"replies":[{"embeddable":true,"href":"https:\/\/tomo.com\/blog\/wp-json\/wp\/v2\/comments?post=3464"}],"version-history":[{"count":9,"href":"https:\/\/tomo.com\/blog\/wp-json\/wp\/v2\/posts\/3464\/revisions"}],"predecessor-version":[{"id":3860,"href":"https:\/\/tomo.com\/blog\/wp-json\/wp\/v2\/posts\/3464\/revisions\/3860"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/tomo.com\/blog\/wp-json\/wp\/v2\/media\/3766"}],"wp:attachment":[{"href":"https:\/\/tomo.com\/blog\/wp-json\/wp\/v2\/media?parent=3464"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tomo.com\/blog\/wp-json\/wp\/v2\/categories?post=3464"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tomo.com\/blog\/wp-json\/wp\/v2\/tags?post=3464"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}